El Paso herald. (El Paso, Tex.) 1901-1931, 1910-04-08
LETTERS 70 TIE HERALD
SOME ECONOMIC ARGUMENTS.

Editor Ell Paso Herald:
The professors of economic science
Of all the great universities agree that
the increase in the volume of money
gold and paper-has been the most ef-
fective cause in increasing the prices
of the necessities OF life Being some
thing of a student of such matters the
writer would add word 10 what has
already been said. II seems to me that
1t might be correct to say that the in
crease in the volume OF money has added
a certain percentage of increase of price
TO all commodities. For example-(but
not stated as mathematical fact) let
us assume that all prices have been in
creased so percent as compared with the
prices of say-20 years ago Accepting
this for argument sake We find that
some prices have increased very much
more than so percent, while others have
not increased that much This variation
indicates that other influences, aside
from the increase in the volume of
money, have been at work For instance
the price Of wheat has increased
much more than so percent. This being
the fact, We must look about for other
causes
First, let ME dismiss the suggestion
that farm products have increased be-
u.
proposition should be reversed Land
has increased In value mainly because
Oh the profit which it earns for the own
er OF It, The fact. it may be said, is,
as q rule, the value of a given article
varies according as the supply and de-
mand vary in their relation to each
other- Economic writers everywhere.
agree that wheat eating is exteading
and 1t is figured that We are rev near
nh LOO
demand will exceed the wheat product
OF all the wheat lanes III the world. The
same Is true of otk@: products for, along
with wheat eating goes meat eating
and the use of otbSr FOODS.
In a word civilization is extending
ana the popu ration of the world is also
increasing.
Ahother thing: The railroads of the
CnHed states are now hauling wheat and
olner Products to the seaboard for ship
nieht abroad at One-half to third
the rate of times of low prices Thus
cNe domestic price of wheat cannot well
go below the Liverpool market. with
transportation costs added. But it may
De above and generally, now is above il.
Inc reduced railroad transportation
cost, 10 or 10 cents a bushel. under
these conditions, in fact, is added to
the price of wheat at the farmers rail-
there is wheat trust among the
farmers, SO We must eliminate the trust
the artificial price, the corner" ac
from wheat.
examination of the prices of beef in
dlcateS that 1t has risen only about so
percent, while wheat and corn have risen
lOO percent. AS indicated. so percent of
THIS rise in the price of meat, is due |
10 the increased volume of money. Then /
comes the question. rs the remainder of |
the increase due to natural or artificial |
increased use, or to trust /
made artificial prices? The best way to !
this is TO examine into the |
profits of the packers. Statistics show |
hat when the packers sell a dollars |
worth of the products of their bust !
ness, they make, on the average, about I
cents. If this entire profit were wiped !
)ut; II the packers were TO sell at cost, !
he reduction would not amount to a !
,ent pound on their products From /
his 1T would be seen that the packers
ire not getting the increase in the price |
# meats.
1t is a popular fancy that the packers
manipulate the livestocksmarkets. With
Tut discussing this idea, it seems enough
o observe that if such manipulation is
arried on that the packers are giving
he benefit of their alleged ill gotten
gains to the meat eaters. The profits
# the packers not being unreasonable,
[ appears that they do not enrich them
selves by manipulation.
The fact is-this price discussion
reeds, first of all, the elimination of
prejudice. Unless that is done, con-
lusions are not likely to be worth
much.
ExFarmer.