The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1910-02-02
A Psychological Problem.

sioux City journal. Why should ID
popular outburst of protest against tn
cost of living have come at this partie
nlar time2 The question suggest
an interesting psychological problem
And the solution it not easy
Why the present uproar over higl
prices? Up goes hand. and read.
answer is forthcoming Because th'
general level of prices for things init
niately related to the cost of living i:
higher today than it has been since
the civil war The answer is a cor
/ rect statement of fact. A new high
water mark for normal modern condi
tions has been established. Well, il
may be inquired, isn't that an cas-!
and adequate explanation of the pres
ent uproar? II might be, but in the
light of the record it isn't, The psy.
Geological problem remains 1t is
founded on the fact that three years
ago the cost of living was virtually as
high as 1t is today, and nobody both.
cred much about it. At that time a
new high water mark was established
that should have been more alarming
/ then that the new one at this time,
But there was no meat boycott in
1901-no demand for congressional in
vestigations-no angry appeal for food
trust prosecutions. Why not?
That the cost OF living was pra;'-
tically as high in March, 1907, as It is
now is proved by Bradstreets' price IN
dex. A brief explanation of how this
index is secured may suggest its relia.
bility as an accurate reflection OF the
cost of living The index represents
an average wholesale price of COM
modities in all our important markets.
1t includes a record of prices on
ninety-six commodities. They are d.
vided into thirteen groups, as fol-
lows; Bread-stuffs. live stock. proyi-
sions. fruits. hides and leather, tex
tiles, metals, coal and coke, oils, naval
stores. building materials, chemicals
and drugs and miscellaneous. The
computation is based on the average
wholesale cost per pound of the com
modities in question. The final in
dex number is obtained by adding the
cost of one pound each of the ninety
six commodities.
The significant index number on
January l, 1910, was s92310,. This
meant that If on that date one pur-
chased one pound each of the ninety
six commodities entering into the cost
of living it would cost him small
fraction over 1928. 1t was the highest
index number OF record since the tab
ubulation was begun. The previous
high record was made on March 1.
1907, when conditions, although few
persons then realized 1t, were framing
up for the panic that came in the au-
tumn. On that date, nearly three
years ago, the index number for the
same ninety-six commodities was So
1898. Comparison discloses that the
bill of goods that cost s9.23 on jan
uary 1, 1910. would have cost lust
shade under 1913 on March /, 1907.
The increase for the intervening thu e
year period is mere trifile over
per cent.
Now, to get back to the psycholog-
ical problem, why didn't the public
get excited in 1907 over having to pay
1913 for that bill of goods? Today
the purchaser is asked to pay 10 cents
more for that identical bill of goods,
comprising ninety-six commodities of
daily necessity, and a wave OF I'M
mistakable excitement and indignation
sweeps over the country If a grand
total OF 1913 didn't look appalling
three years ago why should a grand
total of 1923 appear alarming now?
As matter of fact the public is much
better able to pay the extra dime to-
day than it was to pay what was asked
in 1907. Then business was on an in
fiated basis. Today business is on a
sound basis, with long stretch of
cumulative prosperity apparently
ahead.
What is there in the minds of the
people today that wasn't there three
years ago? There must be something
Conditions that did not disturb in 1907
cause great disturbance in 1910. That
disturbance must be due to a state
of mind. 1t is caused by the know
ledge that new tariff bill has been
passed-a bill that is claimed by many
publicity agencies to have the effect
of increasing the cost of living? Is il
the result of continual pounding away
at the theory that something is
wrong? Is it the logical consequence
of turning loose the microbe of insur
genecy?
What is it? Can anybody tell?
Cat <ha Look