The Washington herald., 1914-03-06
TALKS
OF LIVING COST
Director Of Mint Says Raw
Materials Are Responsible
for Present Prices.
ROADS MUCH IMPROVED
Nothing but Revolution Would Off,
set Rise of so Per Cent in
Cost Of Necessities.
ROADS MUCH IMPROVED

In his report on the finances Of the
United States government. Issued yester-
day, Director OF the Mint George E. Rob-
erts. discusses In the thorough manner
which has made his reputation interna-
tional. the enormous relative ancrease in
the cost OF raw material.
The discussion may be said to be the
most authoritative yet contributed on
the cost OF high living and the influences
governing
a study of all price tables" says he.
will show that the level Of prices under
review has been carried up by the rise
in articles OF food and raw materials.
Manufactures have either not risen at
all or have risen by a lower percentage
than the raw materials and labor which
have entered into them The greatest
rise OF all in the last fifteen years in the
United States has been in lumber, but
IL Is not necessary to resort to the gold
hypothesis for an explanation in this
case. All OF the products OF timber have
been going higher because nearby sup
plies were being exhausted. And so all
of the products OF the soil have been
going higher because the cheap. easily
titled prairie lands Of this country have
been occupied. while our population con-
tinues to increase.
Farming Not Popular.
Meats are dearer for the obvious rea-
son that cattle can no longer be pas
tured free on the public domain; the
great ranches and herds have been
broken up. and for some years the sup
ply Of meat animals in the United states
has not been increasing. In all price
tables these products Of the farms and
forests and public lands are very I'M
portant factors.
For a long time, during the period OF
land settlement in the United States,
when il cost but little to open new farms,
the prices q farm products were so low
as to afford very small compensation 10
the producers. The desire to own land,
which was expected ultimately TO increase
in value. was the chief induccment for
the opening of new farms. and it was
sufficient 10 keep the price OF products
down close to the bare labor cost. upon
most farms. Of producing them. With
the cheap and easily titled lands occu-
pied. there was a slowing down in asri-
cultural expansion. Since then develop
ment in agriculture has not kept pace
with progress In manufactures or trans
portation.
Since the Barring crisis in 1890 caused
by ovcrfrec investments in Argentine
railways, there has been no extensive
railway Instruction opening up large
areas of cheap lands until the Canadian
construction began a few years ago. And
while there has been an important move
ment of farmers into the Canadian north
west the results of the development eN-
pcnditures have only begun to make
felt. Ii is, however. true that
wheat. the principal crop OF Canada, is
one q the farm staples that has made
the smallest advance.
THE expenditures of capital upon the
railways of the United States during the
last fifteen years have been enormous.
but they have been mainly directed to
and not 10 the opening Of new territory,
as in the decade from 1881 10 1880. The
roads have been Strengthened. grades
have been reduced. additional tracks have
been provided. heavier rails have been
aid. new and stronger bridges haYe been
built: and along with these betterments
upon the rOadways haze come more pow
erfui and more economical locomotives
md freight cars OF much greater cI-
oacity.
Necessities Take Jump.
These improvements have called for
a vast amount of labor and materials I
and have had an important influence I
upon wages and prices. They have un- |
Dttu very lOI lhe
purpose for which they were made. TO !
Wit. an economy in labor and power in |
he operation of the lines. Judged by /
he higher efficiency obtained. these out |
avs were well worth making. but the |
Using prices of timber. ties and various |
supplies. and the higher wages required |
Il the companies by reason Of the higher |
Ost to their employees OF food and cloth (
ng. have apparently more than Offset all
he gains accomplished by reconstruction |
md improved equipment
And the situation Of the railways is Il
Illustrative of what las occurred II
throughout the industries. In all lines II
eavy investments OF capital have been 4
made for the purpose OF reducing labor
osts. and results have been obtained
rhlch would have naturally appeared in
pwer prices if the higher costs Of raw
Materials and of til" food and clothing !
: the operatives had not interviewed and
them. Indeed. il would re-
uire nothing less than a revolution in
he methods of industry to offset in inn
OrtancC 4 rise uf ~ per cent Of the food
tapIcs and of such common commodities
= cotton, hides, and lumber