Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-02-21
The Reason.

HACK IN a reasonable level is to break
tho no,var and check the practices of
the combinations in restraint ol
TRADE" The Press does not adopt
the increase in the production OF
gold. or the alleged shortage III sup
Iplv as opposed to demand. or the IN
Icrease in wages, or the economic
waste of retailing by the small DEAL
ler, or the tariff, as the sole cause ioi
HIGH nrices The gold argument IS
i eliminated by citing the indisputabie
lfact that, while some commodities
Ihave increased in manner that Would
seem to indicate that the deprecia-
,ion in the value of gold has some
thing to do with it, yet the prices OF
manv other commodities have re-
NAMED stationary or have decreased
in value during the same period. If
we accept the argument that gold is
the cause of our troubles, at least a
majority of the commodities we use
| should have increased uniformly in
| price.
The charge that high prices are due
to the fact that the production of
commodities has not kept pace with
the growth of population is denied,
except in the cases of beef and pork
The Press charges the decrease of
available supply to deliberate Beef
Trust pressure upon the stock raiser
Considering the matter Of increase OF
wages in recent years the Press says:
Undoubtedly wages tend to rise
in an advancing civilization where
labor takes, as the reward of its
efforts, a larger and larger share
of the production in which it and
capital are engaged. Labor cost
is the major cost of nearly all
products. Repeated and extern
sive increases of wages without an
increased productive capacity, add
to the cost of the articles which
labor turns out. When this cost
infringes upon the margin of
profit, without which capital will
not engage, it must go into the
price to the consumer. This is
as true with indirect as with di-
rect prOductiOn.'
In discussing the economic waste of
retailing by the small dealer the
Press takes the ground that this is not
unusual and therefore cannot be
blamed for the high prices we pay for
1.-THE commodities we use, or in other
words that while our system Of retail
economic waste is no larger, the dis
tribution facilities are no worse and
the organization no less efficient. now
than in the past, and on the other
hand that in cities we have great dis
tributing agencies which have largely
eliminated this high distribution cost
Perhaps the most interesting portion
of this discussion is the progress de-
voted to the protective tariff. The
Press says:
Then there is the man who
blames high prices on the tariff.
Now, The Press admits that the
protective tariff system makes
higher prices in so far as it es-
tabiIShes great purchasing
power in the home market,
where there was weak, or no
purchasing power before. There
is the difference between the
wage learner who of
ment lacks the means to buy at
the cheapest prices, and the
Wage-earner who, getting good
and steady pay, makes the de-
mand of purchasing power for all
commodities. But protective
tariff on hides did not raise the
price of shoes. for example, nor
While it was stimulating the COM
petition of the beet sugar in
dustry with the sugar trust
taking its material from abroad
raise the price of sugar; nor has
the wooden tariff done so for
clothes; nor have the duties on
cotton manufactures done SO for
the hose we have instanced-and
for other textiles"
- "'uih 'NSiii tIldl tilt Tedutr OF lHe
article had found at least a plausible
explanation of present conditions. 1t
Is undoubtedly true that no one cause
may be assigned for the prices we are
paying and it is equally true that one
of the principal causes is the COM
bnation of capital which restricts
competition. 1t is significant that on
those commodities subject to COMPETE
ton the prices have remained practi-
cally stationary or have advanced but
little, whereas in those commodities
where it is known that combinations
exist the prices have advanced verv
materially and we join with the
Press in its conclusion that one Of tho
first steps at least is to ascertain inst
what part the trusts play in this
scheme to extort money from the neo-
pie and then check them.