The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-09-30
PRICES AND INCOMES.
Comparison of Purchasing Power of
Now and a Few Years Ago.

Now and a Few Years Ago.
Minneapolis Journal.
Most persons pay more attention to their
apparent than to their real income. APP
parent income is the total amount OF
wages, salaries or profits or other form of
money income. Real income is the amount
of goods needed in daily life that can be
purchased with the nominal income. If
general prices are low a salary Of 500 a
month may represent a larger real income
than $50 when prices are high. In the
last five years wages and salaries have
generally been advanced. But ii is main
tanned by many that the cost of living has
increased so much that most men who are
dependent on small salaries or wages are
not so well off now as they were five years
ago.
Undoubtedly there are many individual
cases of employees whose wages have in
creased little If any during the past five
years, while their cost of living has been
very considerably increased. To offset
these in the general situation are the hun
dreds of thousands of men now steadily
and happily employed who were out Of
work and even objects of charity in 1897
The Democrats are seeking in this cam
paign to prove that Republican prosperity
is myth so far as the workman is con-
cerned, because of the alleged fact that the
increase in wages has not kept pace with
the increase In the cost of living. The
however, means nothing TO the man who
was not drawing any wages then and has
a good income now. But a writer in the
Outlook proves that the alleged fact is not
a real one.
In the first place. the conclusions regard
ing the increased cost of living are gener-
ally based on such wholesale prices as
those furnished by Duns Review. The ac
curacy of these figures cannot be ques-
toned. but 1t must be remembered that
they are wholesale While it is true that
on July l of the present year stock of
breadstuffs, meats, dairy and garden prod
uce, other food, clothing. metals and mis-
cellaneous, cost 100000 against $4,000
July /, 1897, 1t does not follow that the re-
tail price increased I'm the same rate The
price of bread by the loaf has not increased,
milk costs no more now than formerly
when bought at retail; the increase in the
price of butter and eggs, fruit and vegeta-
bles does not exceed 10 per cent; clothing
and shoes are only little higher; rents Of
the cheaper houses have not increased
much. The whole advance in the cost of
living Is not more than Is per cent Such
employees as railway men who occupy the
same positions now that they did FIVE years
ago, have, ii is true, suffered. Their indi-
more than they did in 1897. But the number
of employees has increased from $4,000 to l.
090, 900, which means a vast addition to the
well-being of the community. Railway men
did not suffer great reductions in wages
during the hard times. If they have gained
nothing now they lost nothing then. Retail
clerks have gained less than they. But most
of the skilled trades have gained more than
20 per cent. in the rate of pay and are far
more steadily employed. Unskilled work.
men have gained 20 per cent. So many more
men are required now in most industries
than five years ago that the total wage
payments have increased 30 per cent in
most of them.