New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-11-18
THE COURSE OF PRICES.

British prices Of commodities advanced
slightly over . per cent in October. according 10
.'rhe London Economist" But this Is 1aci
which ought TO help much in the education OF
American opinion. There is scarcely any o'her
ouostion on which It Is more important that the
neonle of this country should form correct opln-
ions than ON the question whether prices OF
commodities here are controlled mainly or
,orgolv nv the new forms OF industrial organiZa-
ton If the people are not actually harmed by
thon, while advantages are secured which may
give their industries the supremacy In the COM
marciol world It is of the highest Importance
that ignorant prejudice should not strike down
ali such organizations. the good aud the bad
alike. Public opinion is here supreme Inc
orovest responsibility for the welfare OF the
country rests upon those who have power 10
shane or lead it. For every such American 1t
should therefore be n fact of peculiar Importance
thot in this country, with all its new combina-
lions. prices are at present advancing less than
in Grea; Britain. For the prices of commodities
In this country rose in October only eight-tenths
Of per cent-not half the rise observed by the
Economist"
Nearly all the new combinations have either
cone into existence or reached the stage OF po-
tent influence in the markets since THIS year
began The rise In prices OF all commodities
here has averaged since January only 1904
ber cent. and in Great Britain 1t has been 1913
per cent, according to THE London Ecoho-
,rist,s" records Even the small excess which
anpears In the rise Of American prices Is de
monstrably due 10 defects in the British method
OF comparlson. which treats changes IN IRON
products or lumber as of no more importance
than changes in indigo. The British compari-
son Is of twenty-five classes, each affecting the
result as much as any other; but indigo, when
covers not n flvehundredth part Of the business
done In all the items, counts as much as wheat
beef timber or iron, and 80 do other Items
which are in the aggregate insignificant But IN
spite of this defect "The Economists table mas
long been quoted as on the whole the most
trustworthy record OF British prices, and It
makes the advance for this year substantially
as great as the advance in this country.
The close correspondence in movement Of
prices here and in Great Britain for some years
past is further and strong proof that neither
American tariffs nor American trusts nave
unduly enhanced prices. Ten years ago, on
January l, 1880 THE London Economist in
dox number was 21S7, and on November | 1t
WAS OPS. a decline OF 30 per cent. Accord
ing TO the American table the same articles ana
quantities which cost so 900 on January !, 1889,
would have cost on November l. lSJ3 Only
sol 74S n decline of 4.34 per cent. Not only Is
the difference remarkably small, but the slightly
greater decline In this country than In Great
Britain goes 10 prove that conditions here have
not been less favorable TO consumers than In
England. although the Mckinley tariff was en-
acted in 1890 and the Dngey tariff Is now in
force and nearly all the great Industrial comb-
nations have come into existence within the last
| ten years 1t should be observed. however, that
the fall in prices here would be considerably
! greater than in Great Britain but for the ex-
ceptiopal advance In iron and steel products, a
class OF such Importance that its influence upon
the general course Of prices is large.
American prices OF iron products were q per
cont higher on November than at the begin
ming Of 1899 and that change alone accounts for
more than half the rise in all prices In this coun-
try during the ten years. Yet 1t has been con-
clusively shown that the prices of pig iron in
this country are not controlled by any or all
combinations and cannot be- and that prices OF
finished products of iron and steel have not ad-
yanced out Of proportion 10 prices OF the mate
rial Mr. Gates. president Of the American Steel
and Wire Company, testified before the Indus
trial Commission Mt Washington on Tuesday
that his company had only advanced prices In
proportion 10 the material and wages; that the
cost of material had more than doubled. and
that the wages Of thirty-six thousand men en-
ployed by the company had advanced 40 per
cent. One other fact appears, that the adj
vance in British prices OF iron and steel prod
ucts has been greater since 1889 than the ad-
vance in American prices, although this year