The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1910-07-01
COST OF LIVING REPORT.

investigate the advance in prices and
the cost of living, Senator Lodge takes
superfluous pains to acquit the tariff
Of the chief responsibility. 1t is true
enough as stated in the report, that the
tariff seems to have been no material
factor in causing the advance in prices
during the last decade" How could II
be? The advance has been irregular
J and reached it's. highest point in 1907,
after which there was a recession for
some months and a renewed advance
in 1909, while no change had taken
place in the tariff until August in the
latter year. The changes which took
effect then were not calculated to
cause an advance in prices except
in few items, and in those the ad-
vance took place with no perceptible
effect upon the general level or upon
the cost of living. No intelligent or
rational student Of the tariff, however
strongly convinced that IT is largely
! the cause of high cost of living in
this country, pretends that 1t is the
cause of the advance in prices since
1900. 1t is the cause Of a general high
! level of prices for many commodities,
but not of fluctuations from that level
whether up or down, in a period in
| which no changes are made in the du-
ties. 1t contributes to the power Of
various combinations to exact high
prices but that has not been increased
in the last ten years.
The committee attributes the in
creased cost Of living more to the high
er prices of farm products than to any
other one cause. Therein it is obvious
| ly right, and its reasons for the ad-
vance In those prices are fairly
stated. The higher cost Of food is
something that comes home to every
family and it needed no committee of
senators to tell us that bread and meat
are dearer than they were ten years
ago. Neither were the causes Of that
self evident fact much OF a mystery
The committee reiterates the state
ment of these as an increase in wages
on farms. an advance In the price of
farm lands due to growing popula-
ton and diminishing uncultivated
areas, decreasing fertility of soil and
greater cost of cultivation, and so on,
| POPULATE has tended more to indus
trial centers than to farming lands, in,
creasing the demand for products out
of proportion to the increase in pro-
ducing a supply. All these facts have
become familiar matters of discussion
and everybody is coming to recognize
the need Of giving attention to larger
production and more economical con-
sumption. The argument about the
innocence Of the tariff touches this
matter in an interesting way The
committee, in arguing that the tariff
could not be responsible for the in
crease in the prices Of farm products
because no change had been made in
1t which affected them while the in
crease was going on, says that such
changes as have now been made Sin
these schedules have apparently had
no effect on prices, as almost without
a single exception the prices have ad-
vanced materially since the passage
of the act without any distinction
as to whether the tariff was increased
or decreased"
1t is fact that has long been noted
by students of the subject that the du-
ties on farm products, of which we
have a surplus above the domestic de-
mand, are without material effect, but
have been used to fool the farmer
benefits Of protection, to which he had
to contribute, so much for the profit
of others. The duties have rarely had
any effect upon the prices which he
got for what he produced and sold,
and 1t made little difference whether
they were raised or lowered or re-
moved altogether. The committee
quotes figures to show how much high
er the prices of these farm products
were in Europe than in this country in
1900 and how much higher they are
still, OF course the tariff has nothing
directly to do with it, for duties are
of no effect where we produce large
surplus for export; but there are many
other things of which the prices are
raised by protection against foreign
competition, and that indirectly affects
the cost OF general production.
There is no doubt at all that the
changes which have taken place in the
relation Of agriculture to other indus
tries and OF the supply of natural
products to the demand for them has
had much to do with higher prices and
increased cost of living. This is the
most obvious aspect OF the case, and
the remedy lies In stopping the waste
and improving methods of cultivation
and adopting in every line OF produc-
ton policy OF increased efficiency and
economy instead of raising barriers
against the competition which is the
chief incentive to Improvement and
progress. The Lodge COMMITTEES is
disposed to belittle the effect of trusts
and combinations, as well as the tariff.
upon the general level of prices and
the cost of living. The report says
that the prices OF many trust pro-
duced commodities have not adj
vanced as rapidly as those OF other
commodities and where they have "ad-
vanced greatly 1t appears to be due
largely to other causes, such as short
supply" Here the question OF lad
vance," or of price changes, Is again
confused with that OF a generally high
level of cost. So far as prices are con-,
trolled by combinations they are less
liable to fluctuations, but they may at
the same time be held above the nor
NAL level established by fair competi-
ton.
The report OF this committee may do
something to clear the public mind on
the subject Of high prices and increased
cost OF living, but 1t would have been
more valuable II all special pleading
in regard to tariffs, trusts and labor
unions had been omitted. They have
had their effect. which might a. well