The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-10-05
NIGH PRICES AND THE CAUSE.

the food riots of recent occurrence in Austria,
Belgium France and Germany indicating
that the high cost OF living is worldwide.
From this the writer infers that the protective
tariff cannot logically b. held responsible. He
thinks that the American people have been mis-
led by demagogous and misinformed agitators
20 that popular but wrongful, clamor against
trusts and tariffs has bann raised.
The explanation offered by the Record is two
fold First. that such prices are the logical
result of the Law Of supply and demand. The
rush to the cities has depopulated the rural
sections so that the demand has become much
greater than the supply, the consumers so
largely outnumber the producers
We concede that an advance in prices was
natural from this cause. but no such advance
as we have witnessed in the last few years. Mr..
Wickersham, who has never been suspected OF
being a rabid and fanatieal antagonist of trusts
In general asserted in his speech pleading for
governmental supervision Of corporations that
they had arbitrarily raised the prices Of the
necessities of life and that in regard TO many
commodities the law Of supply and demand no
longer regulated such prices. The necessity OF
making dividends upon inflated values and
greed for gain has undoubtedly inspired many
monopoes to hch the public purse that their
private Golfers might be enriched.
The fact as stat.sticians figure. that one.
eighth Of the people own seventn-eights OF the
wealth indicates beyond the shadow of doubt
that the one-eighth have accumulated more
than the natural ratio that might be explained
upon the ground of superior earning capacity
Evidently forces have been operating that were
Of great aid to the favored few. These we be-
lieve to have been unjust tarin, which SO
protected the manufacturer from competition
as to permit him to fix schedule OF prices
beyond the legitimate profit. and the indiffer-
ence and weakness of the authorities in enforc-
ing the laws against great corporations, permit
ting them to pursue undisturbed their plans
for amassing fabulous wealth at the expense
of the masses.
If the law of supply and demand. operating
naturally explained the high cost OF living 1t
would logically follow that the producers would
be the greatest benetcaries. But what are the
factsP The farmer has received but small
proportion Of the profits. We are told that he
has received but 40 cents out OF every dollar
that We spend for the necessities. The re-
naming so cents has been lost somewhere be-
tween his fields and gardens and our homes
When we contemplate the enormous fortunes
that have been accumulated by the manufactur
ing classes il is easy to understand where
good part of the lost 20 cents has gone. The
high tariff that has cut the throat OF competi-
holI mn,
the public and go through its pockets.
The Records other explanation is that the
production of gold has increased rapidly
and 10 such an extent that gold, whcn IS the
standard Of values has decreased in It's rur-
chasing power. AS gold becomes worthless
= ether ferns OF yalne rise, dollars worth OF
gold will not today purchase much as it
would some years ago Mr. J. ]. Hin. ne
think, called attention to the same fact some
time ago We not sufficiently familiar with
the economics of the situation TO dispute the
theory effectively. but upon the practical side
we might observe that If gold had become so
plentiful as to decrease its value in purchasing
it's value in the payment Of wages should have
decreased as well and in the same ratio. II
II takes more gold for the laborer to buy the
necessities Of his home. in the same proportion
his employer should have paid him more gold
for his work Time and strength and skill
are the commodities the laborer sells. When
he is forced 10 pay more for his -four and
sugar and meat the men who employ him
should be willing to set larger valuation upon
what he has TO sell 10 them well upon
what they have to sell to him.
II is true that wages higher than they
we're some years ago. but the increase is not
equal to the increase in the cost OF commodi-
ties he has to buy. If there is anything in this
theory then the wage has been done
by somebody. The man who has prohter his
products by reason OF increased prices has not
passed fair share of such profit TO the
wage Garner. He has "Sated il down." as the
amazing multiplication OF multi -millionaires
I will testify.
II IL evident to our minds that through legi-
4 innate causes there should have been a natural
Increase in the cost OF living But natural rea-
Il nons would also have brought commensurate
a Increase in the scale OF wages. and the aver
Il 80 man would not have suffered in conse-
N auance. Az II is, special privileges TO the few
~ tsEoasa A naaeauEA And Nssgisimale