Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-11-26

Furthermore a great deal of embar-
| "a ssment has been caused by the ex-
| ira ordinary advance in prices OF COM
modities. and there is disposition to
blame the middleman. or the retailer.
for this condition. While these
charges may in some cases be found
! ed on fact, it is equally true that In
the majority of cases high prices nave
oeen caused by conditions over which
! man has no control. Take the wheat
situation as an example. There Is
certainly no equitable basis for at
;ributing the reduced production to
the farmer. for the loss in bushels has
not been the result of reduced acre,
ago. but rather of unfavorable natural
conditions Mother Nature should
therefore be held responsible.
Not since the outbreak Of the war
in Europe. when 1t was feared that
the price of foodstuffs would double
federal authorities been so aroused
over the upward trend of the necessi-
ties of life. Those who are striving
to solve this problem are trying to
violated. whether honest weight and
full measure are given, as well as now
best to facilitate the moving OF food
to the markets.
Some Have Raised Wages.
So long as the vigilance of the
proper authorities is maintained there
should be no reason to fear an I'M
reasonable or oppressive price sched-
uIe. Some of the larger industrial
concerns, such as the United States
Steel CORPORATION and the New Eng
land milling companies, have helped
their employees solve their industrial
problems through generous increases
in wages. Doubtless other companies
NAV desire to do likewise. but are
compelled. through lack of resources,
to carry out their good intentions.
There is reason for general grat1h-
cation in the announcement from
Washington that the advisory council
of the federal reserve board can see
no dangers that need come from the
further Importation of gold in settle
nent of our heavy trade balances. pro-
vided proper methods are employed to
control of the gold and to prevent undue
expansion. The consensus of opinion
is that a general adherence to a policy
of prudence and conservatism would
be the surest means of maintaining
our present prosperous condition"
Gold Stock Increased.
During the past three months the gen.
eral stock of gold in the country. as re-
ported by the Treasury, has increase
5000, 900, 600. Practically all of this in
crease has taken place in the amount
Of gold in circula tion-that Is, in the hands
Of the people or in ordinary banking re-
serves. Since January ! the increase in
the general gold stock has been $685..
900. 900 of which 1919 900, GOO has gone
INTO circulation. Since January l. 1915,
the general stock has increased 1884 .000.-
900, and the increase in circulation has
been $3.50, 900. 900, the difference being rep
resented by what has been accumulated
in the federal reserve banks in the mean
time.
The increase in note circulation of the
great banks of the world due to the war
has apparently been about three and one
half times the increase in gold holdings.
In other words. there is now about 81,
500, 900 900 more gold held in the various
countries since little more than two
years ago. Russia has increased its gold
stock about 1890. DOC, 900. while the next
largest national increase is the United
States with over $500. 000. 900.
That the increased note circulate of
the world since the outbreak of the war
mas not been more than three and one
half times the accumula ton OF gold in the
various countries win probably be a sur
prise to most people. In other words.
there is a gold reserve of about 2S5 per
cent held against the increased circula-
ton. 1t will be seen. therefore. that
there is not such a great deal of in
fiation here after all.
w s. COUSINS