The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-01-26
AS TO HIGH PRICES.


cit don't cost them any more to feed
the fish than 1t used to and they sell
It now for twice as much" was the apt
reply of Topekan the other day to an
argument which a friend was present
ing to the effect that the increased cost
of all KINDS of fodder. corn in particu-
lar, was responsible in a measure for
the high price of meat.
In an exceedingly subtle way that
statement also conveys the idea that is
prevalent generally with a good many
people that the reason for the high
prices of meat. and everything else in
the food line for that matter, is due to
the profits which are being demanded
from the consumers by those who ham
die the fcodstuffs through their pro
6uction, preparation for the market and
final sale to the innocent bystanders."
Many people have an idea that the
trusts get the most of these profits,
but an analysis of such figures as are
attainable would seem to indicate that
their per cent of profit is not so won
derfully enormous. The producers of
cattle and hogs and other foodstuffs
are getting more money for their prod
nets than formerly but the increases
they are receiving do not APPEAR to be
in proportion to the prices which are
demanded Of the consumers. AS to the
retailers, they all insist that their
margin Of profits are as small as they
could be If they are to be able to con-
tinue their businesses. A searching in
Quiry into this matter of prices and
profits is needed. and one of proper
scope will be undertaken before long,
to find out If combines and trusts or.
retailers are getting more than they de-
serve, and If so it may be possible to
apply some effective remedies.
AS was pointed out. however, in
general way in these columns couple
of days ago, many persons believe that
the chief reason for high prices. is to
be found in the fact that the worlds
production of foodstuffs is not in
proper proportion to the demand for
them. A specific opinion to this effect
from an expert economist should be
interesting and can be taken for what
it is worth. 1t comes in the form of
an interview, printed in the Chicago
Tribune, from Professor Earl Dean
Howard of Northwestern university,
acting head Of the department of econ
omics.
High prices are simply the results of
q short supply and a greater demand"
he said. 1.-The increase of gold since
1898 has been a remote cause. This in
crease added to the purchasing power
and people bought more. Prosperity
caused people to adopt higher stand
ards of living, although incomes did
not advance in proportion to the in
creased cost of living. 1t was easier
to borrow money and more was Dor
rowed.
The increased demand for luxuries
| also aided in bringing about the pres
ent situation. The large amount of
| money expended in the manufacture OF
| automobiles was an important feature,
for money used in this way otherwise
would have been used in industries that
would have provided food products, ma
| chinery, etc. 1t is estimated that
about $500, o00,0 900 will be used this year
in the production Of automobiles and
in the purchase of them. which amount
might otherwise be used in productive
| industry. Purchasers Of automobiles
have sp4nt money that otherwise might
| have been used in producing wealth"
According to Prof Howard, prices will
increase in incomes. till they will reach
their highest point. which he says will
take place in about two years. Then
there will be o. depression and nature
will again supply the remedy and
through economy the natural order will
be restored.
'Those who benefit by the increased
prices are the debtor. the producer of
products of any nature, the manufac-
turer, and the farmer" he added
''Those who will suffer most are
the persons working on fixed sal
aries, college professors. government
employees, and creditors. The owner of
property will also be benefited, since
rentals will be higher.
Another cause that helped to bring
about the present state of affairs is
| the increased value of land. The farm
er and owner of land became too rich
to remain in the country. The result
was that the land was leased to ten
ant and we have an inferior producer
| and less production