The Ogden standard. [volume] (Ogden City, Utah) 1902-1910, 1910-02-14
CAUSE OF HIGH PRICES
BIG INCREASE IN GOLD

New York, Feb 1S.-'Jf they con-
tinue to take gold out of the ground
for another ten years with ratio of
Increase the same as within recent
yoars, prices will continue 10 90 uD
The working man must therefore get
higher wages and railroad rates will
have TO advance"
This is tho opinion and declaration
made by Prof. Joseph French John.
son, teacher of political economy
of tho New York university, In Il
twenty-minute address before the
Traffic club of New York on the sub
joct of prices. Rates and Wages"
He was aware. hn also snid. that this
might not be received with popular
approval, but IT. WAS because those
who did not agree with him do not
understand the money question.
How Supply Has Multiplied.
In twenty-five years the output OF
gold has increased from Sl25.00O. 900
to S460,OOO.0O0, which later amount
was the record of last year It has
been coined into money. and, in the
possession Of the banks, the loaning
power OF these financial institutions
is correspondingly Increased. The
money becoming available for specu-
lators. they are also able 10 boom
the raw products in the markets
thereby elcysting prices In the past
twelve years. there has been a gen
eral advance Of between 40 and 50
per cent. but meat has not advanced
more than 20 per cent Any state
ment to the contrary with respect TO
meat means simply that those re-
sponsible have not the correct facts
before them. With the elevation OF
prices If the working man is not re-
ceiviDg proDortionate increase IN
compensation, something happens 10
prosperity and panic like that OF
1907 occurs, For reasons thus eX.
pressed the speaker was not In sym
Dnthy with the present war and buoy.
colt against the meat trust
How Gold Controls Prices.
As to railroad rates, he had not
been able to discover what an ayer-
age rate Is, but unless it Is 40 per
cent higher than formerly there has
been an actual decline In the cost OF
transportation. Just as the value OF
gold is Increased or lessened will
prices fiuctuate. the probability being
that as the production OF gold will
Increase during the next ten years,
there Will be corresponding ad-
vance in prices. wages Will have 10
go up and the railroads must neces-
sarlly be allowed to raise their trans
portation rates on freight OF there
will be trouble.
Professor Johnson was followed by
w. II. Lough. jr. who is also a
teacher OF political economy and an
Instructor on transportation and An
apce In the same institution. Before
he engaged In his present avocation
he was traffic man and employed In
railroad service. In speaking on the
same subject as had Professor John.
son he dwelt upon the relations be.
tween the public and the railroads
Remarking that there had been per-
slstent and long continued suspicion
against the railroads, and feeling OF
serious hostility between shippers
and traffic men Notwithstanding that
they have such strong interests In
common. he said that the responsl-
bility for this rests upon the ordinary
lawyer-the commercial business law
ycr-thc man who has legal mind
duo VINO is the proouct oil law
schools and law offices
Live In the Past
The trouble with these men is that
they are governed too much in their
conclusions and opinions by past pre-
cedents while the traffic men OF the
railroads live In the present and for
the future. Originally rates were
made upon the basis of equality for
service rendered and since railroads
came into operation the principle hos
been to adjust them to tho develop
ment OF business and traffic. The re,
suit is a situation IN which the law
yer Is hostile to a condition or prin-
ciple under which the traffic man is
working II 1t were not for the meth
DDS and this principle OF the rail-
roads there never would have been
the stimulating influence which has