The Washington herald., 1913-11-23
EXPERT TALKS
ON HIGH PRICES
Sir George Paish, Of England,
Believes Living Cost
VIII Fall.
CREDIT HAS BEEN EASY
Reduced Consumption to Bring About
Change-Ameriea Has Welded
Important influence Abroad.

The high cost Of living has about
reached the crest, according to one OF
the foremost British experts, Sir George
Paish, editor OF the Statist and one OF
the foremost British financial authorities.
who has won his knighthood in recogni-
ton OF his work on the revision of the
accounting and statistical systems of the
British railroads and who also has writ
ten largely on the railroads OF Great
Britain and the United States.
This is the fourth visit to America of
Sir George, who on Friday paid his re-
spects TO President Wilson at the White
House. The distinguished Briton is in
this country for a tour of several weeks
10 study financial conditions. He has con-
ferred with many of this country's lead
ing fnanciers, and also has paid a visit
10 the Interstate Commerce Commission
''The people of the East and West have
not had the same degree OF good for
tune said Sir George Paish. who was
seen at the New Willard. THE big rise
in prices few years ago was cause Of
great, good fortune to the farmers, but
was not equally beneficial on the whole 70
other classes Of wage earners. The
great increase in the cost Of living was
due to the great rise in the cost of food
stuffs, raw textiles, and other natural
products; so that the prosperity Of the
farmer meant the detriment Of wage
earners in Industrial lines
Reduction Il Due.
These classes of wage earners are
now due for a share of good fortune A
measurable reduction in the cost of liv-
Ing is due. The rise in the cost of living
came from the remarkably good credit
the world enjoyed in the last ten years
nd the greatly increased consumption
IF haT al IN hnr
than they had ever been able to borrow
before. In fact, the WORLDS demand got
to point where it greatly exceeded tho
supply. The situation has now peen mod
ified.
Many countries are experiencing great
difficulty in satisfying their need for capi-
tai, and very little new WORK is being
undertaken anywhere in the world. This
means that for time, at any rate, the
demand for goods and the consumption
of many countries will be reduced, and
there is a probability that the supply Of
goods will be in excess of the demand.
The price of commodities will fall there
fore.
How soon this condition of things will
become apparent cannot be predicted
with certainty, as new demands for capi-
tai. which must be satisfied may arise.
For example, If the Mexican situation
were to develop and trouble were to arise
between the United States and Mexico
large orders would have TO be placed for
clothing, munitions of war, and other
things needed by a great army, and a
fresh stimulus would be given in this
country to trade and consumption.
But, falling such conditions, the res
toration OF peace in Europe and the
economies of young countries which have
borrowed so heavily in recent years can
not fail to bring reduced consumption.
And reduced consumption Will bring in
its train lower prices of commodities
and reduced cost of living.
East May Suffer.
LAS far as this country is concerned
such conditions would not be to the dis
advantage of the East as much as to
the West, as the latter has derived great
er benefit in proportion than the former
from the rise of prices in the last ten or
fifteen years.
of course the East would in some
degree suffer from reduced demand for
manufactured goods but on the other
hand the incomes from interest, services
and even from the manufacture of goods
would give the East a greater relative
consuming power. II is, however. highly
improbable that prices will fall to any
thing like the level they reached in the
nineties.
'As far as can be seen the reaction
in the worlds trade will be a moderate
one, and the great accumulation of gold
which will probably result will soon tend
to restore confidence and make for ex-
pansion in trade and consumption after
relatively short period of rest and re-
cuperation."
Speaking of Anglo-American relations,
the English visitor said:
THE relations of Great Britain and the
United States have grown ever more
friendly. We realize today, as we never
realized before, that the thoughts and
aspirations of the people Of the two
countries are in a great measure identi-
cal, and that we have a bond Of senti-
ment cementing our two peoples closer
even than the ties of blood which united
them in the days when the two countries
were part Of the same empire.
This is due not to any change OF
sentiment in the United States, not to
any change of point OF view by the
United States, but to the acceptance of
that point of view by the people of Great
Britain. The people of the United States
now stand for all of those things which
we ourselves have now come to stand
for-liberty of the subject, the desire to
promote human welfare not only in our
own country, but in every other country.
and a desire that every man should have
greater opportunities for self-realization
than he has ever enjoyed
Sir George thinks that England has
been Americanized in certain very help
full ways.
81 mean," he said. "that your no.
tons of equal opportunities for all men
have greatly influenced my country.
There was once a time when we had no
prosperous middle class, when we had
only the very rich and the very poor
Then 1t was extremely difficult for a man
to get ahead, to reach independence of
fortune.
Now it is different. Seeing how sue
cessful the American equality of oppor-
tunities idea has worked out, our people
have come to see how valuable for a ma
tion's life it is to give all citizens a
chance to go ahead in the world"