The Washington herald., 1912-01-21

The increased cost OF living Is so gen.
eral throughout the world that the Amer
lean Economic Association has seen it to
ask President Taft, through a resolution
presented to the country's Chief Execu-
tive, to invite the world powers 10 Join
in a conference as a step leading up TO
the creation OF an international COM
mission to study the causes Of advanc-
ing prices and to suggest remedies to
the countries concerned. The plan for
such a commission has met with the ap-
proval OF the leading economists OF the
world, among them Prof Alfred Marshall,
Of Cambridge University DR.. Gustave
Schneider, OF the University OF Berlin.
and Dr. Edwin R. D. SeIigman, McVickar
professor Of political economy at Colum-
bia University.
In regard to the facts. results. causes,
and remedies of the worldwide increase
in the cost Of living. Prof. Seligman had
the following 10 say: The cost OF hy-
ing involves problems that are not purely
local or national. but international. for
II is a fundamental fact that general
rise in the price level has taken place
in all civilized countries. Therefore, since
this Is a world movement, there must De
a world cause.
Troubles in Europe.
The question Of world prices Is one
Of the examples OF the universal validity
Of economic law. In England II has given
rise to labor trubles; In Germany II has
led to riots, and in France It has involved
the government IN all sorts OF Wild
schemes to regulate prices by law. For the
whole world the Increasing cost Of living
now and its effects are similar to what
went on In Europe In the sixteenth and
seventeenth centuries, when general prices
increased by several hundred per cent
During the last decade there has been
a rise OF about 50 per cent in the general
price level throughout the world-the
greatest increase that has occurred in
several centuries-and the increase in
prices has been especially marked In
certain classes OF commodities The facts
as to this increase are strikingly. similar
whether the figures for the United States,
for England, or for any other country
shown in Bradstreet's that a general In
crease of 81 per cent, took place in the
mice level from 1896 to 1910. Breadstuffs
in this country increased 100 per cent in
cost. while goods like sheetings increased
only 30 per cent, ginghams, 40 per cent
and glass g per cent. Seuerbacks fig-
ures for England show that during the
period iSse-lsOs animal 1000 increased
from a 10 So per cent, vegetable food
from 81 10 20 per cent, while textiles In
creased only from "a to g. per cent. Sugar,
coffee. and tea, in England decreased.
however. from 50 to As per cent, as the
same commodities did In this country,
'But the people have very short memo
ries. Fffteen years ago they were trou-
bling themselves with low prices, Wnicn
In this country brought on free silver and
Organism.
Appeal to Taft.
"such rises and falls in the cost Of liv-
ing are an old story to the historian Of
economies, and at the same time they
are pretty serious to the people that
are affected. Economists, prominent
among them Prof. Irving Fish, Of Yale
University, have long been preaching
some action to prevent violent huctua'
tons or nrices either up or down, and
now thew hone that President Taft win
Consider their appeal for the establish
rnent on an international commission
"a. re1ards the result OF the high cost
40 iI,,,ns.H continued Prof. Seligman, "tf
n were NOT for the fact that a period
OF Using prices Is also period Of good
business. as at present. period OF nign
prices such as the present would LEAD 70
a revolution. The rise In prices. sucn as
toolr niacs IN Germany after 1870. or IN
Jansp during the last decade, Is an evi-
dence of substantial progress, for an IN
crease rs,S IN urices in a backward country
is a benefit, since 1t means an increased
output OF wealth at lower cost;
Increased prices are aIwass .enows1
by increased money wages, out until
wage ana salaries adjust themselves to
the new scale Of prices-and It always
REQUIRES some tine-the consumer grum-
bles, II 4 the discomfort OF this period
OF transition that constitutes the serious
feature Of the situation. A rise in prices