The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1910-07-22
WHY THE HIGH COST OF
LIVING? THE ANSWER
SUPPLY AND DEMAND BOTTOM
OF THE TROUBLE.
Failure of Cattle RaiSers to Keep Up
With the Rapidly Increasing Pop
ulation Shown in Figures; the In
veStigation Goes Back Long
Number of Years; Marc M. Rey-
nolds Studies Situation.

High cost of living has been the
theme for endless argument during
months past. 1t Is ii question which
affects everyone and the most radical
writer's who have heaped blame upon
the packers, charging that unlawful
combinations and conspiracies have
caused the high price of meat, have
had as many readers and believers,
prehaps, as have theorists who talked
in figures.
In the current number of Moody's
Magazine Mare NJ. Reynolds has an
article on "The High Cost of Living"
He comes to the subject as an investi
presents figures showing the fiuctuation
in the price of meats during the last
forty days. He has endeavored to
find out the reason for the soaring
prices of meats and just what the
responsibility of the packers is. He
concludes that the whole question re-
solves itself into the never ending bat
tie between those two sturdy. old war
riors of political economy-Supply and
Demand
Where the Population Comes In.
without attempting to condemn or
defend the packers says Mr. Rey-
nolds, Il have attempted to find the
approximate cause for the present
high cost of meats to the consumer
by tracing the official records back
for period of years. During the
last forty years prices of meats have
fiuctuated according to the law of
supply and demand, and that the sup
ply has grown less and the demand
has increased due to our rapidly grow
ing popula ton can be verified by com
piled statistics.
In studying the problem of high
cost OF living our present population
must be compared with our popula
ton at different periods of the past
with which comparisons of prices of
foods are made, and exceptional con-
ditions must be recognized. Naturally
it requires greater supply OF cattle to
feed eighty-odd millions of people in
the United States today than it did to
feed 62,0O0.OO0 in 1890, or 76,000,O00
in 1900. If the supply of cattle de
creases and the demand increase, there
necessarily must be an increase in the
cost to the consumer
Accounts for Part of it Anyway.
''Simly pursuing the analysis SO far
will account for some advance in the
cost of living, and students who desire
to place the relative amount of in
creased cost on the various factors
entering into the final cost of food when
it reaches the consumers kitchen may
adjust the extras to suit their indi-
vidual Interpretation of the problem"
Mr.. Reynolds than gives tables of
receipts of cattle, hogs and sheep at
the Chicago Union Stockyards, some
of the figures being taken from the
Farmers and Drovers journal, some
from the records of the Chicago Union
Stock Yard and Tranit Company, and
some from United States government
reports. These cover a period of some
forty years. and show many inter
esting things about prices during that
time.
He then produces tables showing
Quotations in the price of corn, which
has direct bearing on raising hogs.
He also considers the constantly in
creasing population i'll the country,
and the fact that the increase in value
of land in the West and Southwest
has intcrfered with cheap cattlerais-
ing. Big ranches are constantly being
cut up into farms.
No New Thing, This Agitation.
In conclusion he says: "The ques-
ton of high prices for all food stuffs
at times has agitated the public mind
for three quarters of a century and
will continue to do so during all flu
ture times if the population of the
world continues to increase more rapid
ly than the supply of food products. In
1886 Daniel Webster was making a
fight against the high cost of living
which in some respects resembled the
efforts many of our legislators are
making today. One comparison of pri-
ces between then and now is inter
esting, as it illustrates the soundness
of the claim that the law of supply
and demand obtains on the average
during all time.
''In 1886 -four per barrel ranged in
price from So to So. and the total pop
ulation of the United States was
around 100000, with total pro
duction of wheat of about $4,000, 900
bushels. I'm 1909 the United States
produced 1871, $4,000 bushels of wheat
and the price of flour this year is from
$4 to Sc per barrel, so the price of
flour has not advanced any on the aver
age owing to the fact that our pro
duction has kept pace with our in
creasing population. By following the
various articles of food through an
analysis of supply and demand there
will be found an Approximate reason
for high prices of staple articles that
are not affected by special trademarks
or fancy packages.