The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1909-10-06
PRICES AND DEMAND.

The New York Journal OF Commerce
has the following editorial comment
on Secretary Wilson's explanation of
the advance in prices OF meats;
Secretary Wilson's explanation of
the high prices Of meat points to a
cause of high prices generally which
is worth a good deal OF consideration
and probably comes much nearer the
truth than the explanations commonly
offered. He says meat Is high because
the masses OF the population eat meat
three times a day and take the best
cuts at that.
One explanation Of the prevailing
high prices is the increased cost OF
production. This begs the question,
for the increased costs of production
are among the prices whose advance
is under consideration. It assumes,
also, that the producer always gets his
money back, which Is VIGOROUSLY not
true within short periods though of
course. over long periods production
must pay for itself or cease. The high
price of beef is also attributed to the
high price of corn, which is a natural
view for the farmer to take, but he
not getting for wheat at one time and
cotton at another and pork at a third
what 1t cost to produce them. Increas-
ed cost of production is a reason for
asking higher price, but 1t lie not a
guarantee of getting 1t.
Another explanation is the increased
production Of gold and the depreciation
of money. This topic is too large to
receive more than a reference at this
time. There are many difficulties in
making the theory fit the facts Fur
thermore, il involves more or less of
the cumulative theory of money
which it was supposed had been pretty
thoroughly exploded. II it is recover
ing its standing we shall soon have
revival Of cheap money in all its
forms, not alone silverism, but green
baclxism
The producer does not sell for as
little as possible-cost plus a moderate
profit. At times he cannot get back his
costs, but at others he gets back much
more; at all times he gets as much as
he can. The price, therefore, is fixed
as much by the extent OF the demand
and the means Of the buyers as by the
costs of production.
Secretary Wilson says the demand
for meat is growing faster than the
supply. The per capita consumption
of wheat is now assumed to be about
q bushel more than Edward Atkinson
believed it to be twenty live or thirty
years ago. In spite OF a panic and a
period Of liquidation two or three
years earlier the past dozen years
have been years of exceptional pros
pertty among US. This is notably true
OF the farmers who on account of
their numbers constitute the greatest
buying class in the country. Since
1895 they have had an unbroken series
Of highly profitable crops. In that
period they have had but two notably
small yields, one OF corn and one of
cotton, and In both cases the prices
amply compensated the farmers for the
decreased yields. During most OF this
time, too, labor has been very gener-
ally employed at high wages. The
statistics of immigration are a pretty
good barometer of the demand for
labor.
II we go to Europe and take rather
extended view we find during the last
generation or two a marked increase
in the consumption OF animal foods
the more expensive varieties OF nour-
ishment-in most OF the countries OF
Europe; probably in all: several Of the
countries have supplied detailed stat
istics in evidence OF this. Asia is con-
Stunning more of Occidental products.
1t is claimed by some authorities that
there Is marked increase in the
worlds consumption OF cotton goods.
The same may be true OF wooden
goods; the prices at the London wool
auctions suggest 1T. The production
and consumption OF iron and steel are
beyond all precedent
1t is not unreasonable, then. to at
tribute the advance OF prices to in
creased demand and increased pur-
chasing power on the part OF the con-
sumers. All that a man produces he
expends. not necessarily in food, drink
and clothes, but all Of 1t he expends
In the sense OF exchanging 1t for some
thing else. Production was never so
large as now and therefore there were |
never before such Quantities OF COM
ODDITIES to be exchanged against each
other. This increased demand largely
explains the higher prices. OF course
the results do not fail uniformly on All
classes. Economic reimbursement is
slow, the changes OF prices burden
some, greatly benefit others and o4fpet |
each other with considerable class. |
The increased demand Ia a better ex-
PLANTATION Of the price advances than
many others that have bean offered.
and IL not complete explanation ii Is
q great factor in the change.