[The author of the paper bearing this title, in making a statistical study of a semiannual bargain-sale price-list, finds that about 32 per cent of all prices quoted end in the figure 9; 16 per cent in the figure 5; 13 per cent in the figure 3; and 12 per cent in the figure 8. Studying the figures in detail he suggests various interesting reasons for the preference shown in the price-list. We quote from the last third of the paper, by Robert C. Brooks, professor of Political Science in Swarthmore College; in University Studies, published by the University of Cincinnati, March-April, 1908, pp. 20-28, here abbreviated and edited with the author's approval.]

Are odd prices cheap prices? The whole purpose of odd prices, as we have seen, is to suggest by means of carefully selected figures the idea of price reduction. How far may this suggestion be depended upon? In attempting to answer this question we should note first that odd prices are only part of a general plan to the same end. Readers of advertisements are familiar with the fact that in addition to quoting goods at 19, 49, 98 cents, and so on, the advertiser frequently seeks to convey the impression that reductions much greater than one or two cents have been made. The prospective buyer may take all such statements cum grano salis, and depend chiefly on the small but apparently visible reductions indicated by the odd prices themselves. Nevertheless the bargain hunter is abroad in the land, and even the most astounding of the announcements regarding "sacrifices," "slaughtered prices/' and so on must find some credence. . . . [Some examples.]

Now there is nothing intrinsically improbable in any of the above statements taken separately. There are bargains and bargains as every experienced shopper knows. Many contingencies constantly occur in retail trade which enable or compel merchants to offer goods at prices below the ordinary rates. Demand fluctuates widely; in almost every line of business there are dull seasons and dull days during which retailers think it wise to offer inducements in order to stimulate a sluggish buying public. Every merchant, large and small, has to dispose from time to time of "stickers" - old stocks of slow moving goods. Particularly when changes of fashion occur or improvements are coming in rapidly is this bound to be the case. Manufacturers and jobbers sometimes misjudge the market and find themselves with large stocks on hand near the end of a season, or they may lose their heads even when there is no danger and let go at a reduction. In such cases retailers, particularly large retailers, are in a position to secure the goods on terms which enable them in their turn to sell at what are really very low rates. The purchase of bankrupt stocks, or of the stocks of concerns that are going out of business, also offers opportunities. Other contingencies are constantly occurring among the hundreds of manufacturers, jobbers, and retailers. Of course in many such cases the fact that goods are offered at reduced prices may indicate that they are either damaged, out of style, or undesirable in color or in some other way. This leaves open the question as to whether the reduced prices are really low, qualities being taken into consideration. There can be no doubt, however, that opportunities are often offered to purchasers to buy at what are really very favorable rates. For example, what has become a "sticker" to a merchant may satisfy a very fresh and keen desire on the part of a customer. Reductions made because of a change of fashion may mean a great deal to purchasers who care little for style. Even standard goods, as for instance silks a few years ago, may be turned out in large quantities just before a sudden falling off in demand. At such times consumers may justly consider themselves fortunate in having an opportunity to stock up while prices are low. Then, too, it sometimes happens that a certain line is sold at a reduction to serve the purpose of the bargain counter, that is, to bring a crowd which will be tempted to buy other things. The particular goods that, so to speak, serve as bait may be very attractive considered separately. Finally it should be said that successful merchants are neither fools, nor do they take their customers to be fools. They realize that understatement is more effective in the long run than overstatement, that it does not pay to play up small opportunities as great features, and that it does pay, most emphatically, to mean bargain when you say bargain. To be sure there are "lambs" among retail purchasers just as there are in Wall Street, with this difference, however, that in retail trade the lambs do not go "broke." In the very nature of the case they must continue buying. And unintelligent as many buyers doubtless are, they do not always return to the places where they have been shorn.

In a word, there certainly are bargains - for those who are able to perceive them - and not infrequently at that. On the other hand, there is a considerable element of deception in many offerings under this seductive heading. Even allowing fully for the various contingencies noted in the foregoing paragraph it still remains highly improbable that all the vast array of startling reductions advertised every day can be bona fide. Sometimes they measure the credulity of customers or of certain classes of customers rather than the operations of a "horizontal discount knife." The writer has been told of cases where goods have been deliberately cut into "remnants" or handkerchiefs "mussed" by being drawn through the hands. Thrown out carelessly on the counter such "attractions" prove irresistible to a certain class of buyers who snatch them up without examination as to quality or price, convinced from the apparent condition of the goods that they have hit upon famous bargains. Experienced shoppers can usually tell of at least a few cases that have come to their notice where certain goods have been boosted fifty cents or a dollar in price at special sales, the dealer doubt-2 less presuming on the ignorance of customers and the blasts of his advertisement writer to carry off the articles. Success in comparatively few instances of this sort would make up many actual small reductions of a cent or two to the odd price basis. In fairness it must be said, however, that the best merchants regard such practices as bad morally, or at least injudicious. Where the thing is done surreptitiously occasional discoveries are certain to occur, and the store is bound to suffer losses out of all proportion to the gains derived from the foolish trick. Sometimes, however, the practice is openly employed, as in the case of bargain sales held on dull days or in the mornings. In such cases every one is given to understand that prices will be lower at the time and higher later, and no moral blame at least can be attached to the merchant for so acting. Nevertheless this knowledge does not soothe the ruffled temper of the purchaser who is forced to pay twenty-five cents for something his neighbor may have gotten for nineteen cents. Realizing this fact merchants generally follow the "one price policy" of holding goods at a given figure for some time. If reduction then becomes necessary goods are held at the lower figure until closed out, or further reductions without intervening advances are made until this end is attained.