New-York tribune., 1910-06-24
v. c. BROWN SEES PERIL
Demand Rapidly 0vertaking
Food Production, He Says.
THE HIGH COST OF LIVING
Due in Part to Increasing Gold
Production, Tells Mime
sofa Bankers.

ST. Paul, June 23.-President W. c. Brown
of the New York Central lines, speak
ing on the high. cost of living before
the Minnesota Bankers Association to-
day, quoted statistics to show the increase
in the cost of all products of the farm
factory and mine. He attributed the in
crease in the cost of living in part to the
recent great production of gold, but a cause
infinitely more powerful, he said, in COM
parison to which all other causes were
negligible factors was the alarming rapid
fty with which consumption of the products
of the nations farms was overtaking pro-
duction
For this reason the pay of labor has
steadily advanced and must continue to ad-
vance in some fair ratio with the increase
in the cost of things that labor must buy
Mr. Brown continued. ITO put it another
way, wages must go UP in about the same
proportion that the purchasing power OF
the money of the laborer goes down.
,"Unquestfonably the great increase in the
production OF gold has powerfully In
fiuenced the value OF everything In which
men deal. and will continue to affect it
so long as production continues to increase
or continues at its present volume.
THE increase in cost, so far as it Is pro-
duced by the increased volume of gold,
is not feature that need cause appre-
hension or alarm.
Everything save wages, railroad rates
and fixed incomes from longtime securi-
ties, continuously and almost coincfdental1y
adjust themselves to the changing condi-
tions resultant upon this influx of gold
Wages are adjusted from time to time
and securities as they mature will be re-
funded upon a higher basis. The rates
charged by the railroads must also under
the supervision of proper governmental au-
thority be adjusted from time TO time to
meet these conditions.
This increase In values is felt in every
department of business activity OF the ma
ton, and no business can be debarred from
sharing in this increased compensation
without doing great injustice and perrna-
nent injury"
Mr.. Brown then spoke of the alarming
rapidity with which the consumption of the
products of the nations farms rs oVertak-
ing production and continued:
When the day comes that this nation
fails to produce sufficient food to supply
our own people. when we no longer SEND
the products of our farms abroad, bring
ing back the gold from foreign nations
what will be the cost of living in this coun-
try. and where will the money come from
TO meet the cost?
ITO an audience such as this II is unnec-
essary to say that population Cor consump-
tionD cannot be slowed down. ON the con-
trary it will be increased
we are building great battleships' Two
OF them each year. costing, equipped ana
complete. about 100000 each. and 1t costs
nearly 81 OOo00O a year to man and main
tain them.
II am In favor of all adequate navy, but
/ wish the money expended IN bulidlng
lust one battleship could be devoted to
this work of improved intelligent agri-
culture
What one battleship costs would estao-
lish two splendid agricultural experiment
or, demonstration farms in every state IN
the Union. and l will guarantee, II this
is done and the work intelligently ana en-
ergeticalIy carried on, that as a result
or it the value OF the increased product
Of the nations farms will within ten years
huv and pay for every battleship of every
navy that floats on salt water to-day.
.ITnless we can Increase the product an
,cre of the farms of this country the most
ssr;ous danger which we have to fear is
from within and not from without-a dan
qer against which battleships would be OF
little use"
A paper by James j. Hill was read al
the convention of the Miliers Nauoflai
Federation IN Minneapolis to-day. MI Hlii
described the pressure upon existing ter
m,nal facilities as future menace ana a
nresent handicap. He advocated the IN
crease of such facilities. where possible,
but also thought that the equalization Oh
ere,ehf distribution by shippers would mod
tfv construction to a large extent.