The Cairo bulletin., 1912-10-15
Cause of High Prices.

WHY Is ~ ludI tiU IauSN ~ SO =
prices is such a puzzle?
why it is necessary to have
Commission to investigate and re-
port on the causes of the rise OF
priees as recommended by President
Taft?
Sufficient data is already at hand
for all practical purposes.
The period between 1900 and
l9I2-the period of high prices
has been marked by great in
crease in the annual production Of
gold--the increase being nearly
four times what it was prior to
1896. In the last twelve years
$500 to 1922 the total aggregate
production exceeds that of the thir-
ty-fiye years from 1861 to 1896.
This period is also period Of
high tariffs The Dingley bill, en-
acted IN 1897, was in force until
August 4, 1909, when the Aldrieh
bill went into effect. The duties
under these bills averages nearly so
per cent.
1t is in the past twelve years also
that we have witnessed phenome-
nal growth Of the trusts.
During this period prices have
risen by leaps and bounds and they
have risen faster in countries with
high tariffs than in free trade coun-
tries and highest of all where tar
ifs and private monopolies have
fiourished,
Bradstreet estimates the rise OF
prices Of the necessaries of life az
follows between 1897 and 1910:
In England ... 2S per cent
In Germany 43 per cent.
In U. S. ...53. 80 per cent.
The Bulletin OF the Department
of Commerce and Labor Issued BY
our government. estimates the rise
in wholesale prices between 1887
and 1910 at 46.7 per cent and the
rise in retail prices was still greater
Byron w. Holt estimates that
prices increased during this period
so per cent.
The last report of the Federal Blu
reau of Commerce and Labor shows
that prices are still soaring and that
retail prices Of many necessaries in
the last ten years have nearly
doubled.
Thus we note.
CID That there is a world rise Of
prices Of some 25 per cent on ac-
count of the increased production
of gold.
~ That high protective tariffs
raise prices. Prices are Is per cent
higher in Germany under Ger
many's protective tariff than in Eng.
land under free trade.
CD That trusts raise prices. No
where have trade combinations been
able to establish monopoly prices as
in the Uinetd States and it is herr
that prices soar most.
In the light of these facts we car
readily understand why prices ar,
Is per cent higher in Germany thar
in England and 80 per cent highe,
in the United States than in Eng
land.
We also see that less than one-hal
OF the rise in prices Is due to th,
increased production Of gold and tn
balance is caused by the tariffs an,
the trusts.
The rise in prices caused by tn
increased volume Of money and cred
Its is wholesome because all share i
the benefit The rise caused by tn
tariff and the trusts Is vicious b,
cause only few share in the, ben,
tit. II is the abnormal, artificial
rise in prices that hurts and is eau
ing the loud complaints of the CO.
of living.
To reduce the high cost of livin
to natural level we must lower IL
tariff and free ourselves of II
monopoly prices Of the trusts; an
1nasmuch as the tariff is the moth,
OF trusts, rby taking down the tart
wall we will not only be rid of
much Of the rise in prices as com
from the protective system, but
some Of the rise that comes from pr
waite monopoly,
The Democratic House of Repr
sentatives made good start in pu
ms down the tariff wall by cuttil
in twain the. wool and cotton sche
ules aud putting some of the mo
common necessities of life on t
free list. This policy, which W
vetoed by President Taft, needs
be- carried out and extended,
i'll In addition we must take aw
tile other privileges wrapped Up
the currency laws and the laws p,
NJ tanning to the transportation. to-