The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-02-05
INCREASED COST OF LIVING.

The advance of the cost of living in
the United States has of late attracted
much attention in many of the finan-
ciaI journals, and in the Literary Di
gest, from which we quote. Dun'S Re-
view, one of these journals, recently
published a statement giving the prices
of the different. commodities on Janu-
airy 1. Compared with July 1, 1897,
these prices show an advance of 40 per
cent, while there is a decrease of 16
per cent, compared with the cost in
1860. The most notable advance has
been in breadstuffs. The Review con-
tinues:
Examination of the index number
table shows that the farming population
receives the greatest share of enhanced
prices, the rise in breadstuffs falling lit
tie short of 80 per cent, while meats rose
nearly 80 per cent, and dairy and garden
products rs per cent. Much of the latter
gain is due to the change in season, as
eggs, milk, etc, are all more expensive
In winter than in midsummer, but this
factor enters into the record and cannot
be ignored
The New York Financier, in solving
the cause of prevailing high prices, tells
US that during this period of advanced
prices there has been a marked degree
of prosperity. In this prosperity the
amount of visible money in circuia ton
and the per capita circulation count
for little. Part of the latter is perma-
nently in banks. and the larger per-
centage is passing through these in
situations from day to day" 1t contin-
ues:
There has been a gradual rise in per
capita circulation in the United States,
1t is true. over a series of four or five
years, but the rise in values. it should
be understood has been general the
world over-at least until very recently
and has taken place regardless of per
capita circulation. Confidently, wages
have increased. Per capita circu-
lation has nothing to do. as will no doubt
be conceded even by most rabid advo-
Gates of the cumulative theory, with
shortage in crops. or other accidents of
nature that establish the quantity of food
or other necessities. If we have a Short
age in one commodity 1t is only logical
that prices should rise. On the other
hand, the cycles of prosperity. which
seem as recurrent as the tides, bring
about a demand that for the time being
absorbs more than the average volume
OF supply, and We have the spectacle of
rising prices. But coincident with this
advance there is usually a similar impe-
tus in the distribution of profits to the
wage Garner, and with 1t also a condi-
ton of wider buying power which aids In
sustaining a higher level. These are the
familiar phenomena of prosperity. The
whole structure rests on confidence and
credit, and theoretically. having estab-
ished this basis, there should be an in
definite continuance. 1t need not be re-
peated, however. that such a condition
is impossible. Some one makes a mis-
take, local failure Is magnified. and
men become at once fearful of the fu-
ture. The process of retrenchment dis
turbs the whole fabric of society and
prices begin to fall. Then the cost OF
living, measured in index figures, is low |
cred, but as a matter of fact the COM !
fort of living is probably lowered in a !
similar degree to the ma jority, since their
opportunity for work is curtailed The
whole question revolves around the prin- /
ciple of credit, and its coroliary conf |
dence. Visible money is only an unim- |
portant factor. In support of this theory |
We have only to refer to the disaster at |
tending the forced issue of silver dollars |
In this country from 1873 to 1893, to the |
panic of 1857 following a rise of 1888 0oo,-
100 in gold and paper money, and to other
Incidents of like nature which might be
mentioned. Finally ii may be stated that |
the bank circulation in England has been
falling for fifty years. and in the face OF
this fact the standard of living has been
steadily rising