The daily Nome industrial worker., 1916-10-09

America as well.
 While this labor intensive.y ap- piled to the various factory ma chinery in the land can increase the output to the national require ments, the main necessities O. life, food and clothing which depend upon the raw material frorl the iand are not so duplicated and there is an actual shortage relative to the con- stant domestic demand.
 Few people have any idea how since the war began exports of food and clothes have increased. The in crease is marvellous and almost in- credible. Breadstuffs increased ouc hundred and three per cent, cotton and knitted gods eight hundred and three per cent, canned salmon eighty seven per cent, cheese one thousand six hundred per cent, shoes and leather two hundred and sixty per cent, canned beef one thousand nine hundred per cent, bacon two hund- red and five per cent, condensed milk S20 per cent, beans and peas 670 per cent, sugar 4,200 per cent, wooden goods TOO per cent.
 In hardly any of these commodi- ties has the increase, demanded by such an increase in export been re- ported in production, and hence with a lessening supply the demand constant, the domestic price must 1 increase.
 But that is not all.
 Into this country has come flooo of gold. That gold is now in quan titles in the United States never before known. That gold represent. the output of mines which naturally productive have had labor costs re duced to the lowest point by moderl machinery and ore reduction me thods, and so has been constant! declining in value. Held in enorm ous quantities as the purchase price for equally huge quantities of wa munitions, the greater portion o which reached an exchange valu far beneath what was paid for it il foreign gold, that gold in turn i able to exert an almost inestima bl effect in the markets because of it reduced value It's purchasing powe is diminished in proportion to it plentifulness in the banks in Ney York and in proportion to the dimi mutton in the stocks of the commo dities which it purchases through out nation.
 The decreased value of gold du to decrease in the labor costs of it production manifests itself imme diately even in a normal market b. increasing prices: that is more gol is required to pay for the commo dities which are needed. That ha bene the condition of things befor the war, and today the war has ac centuated this condition so that tn purchasing power of gold in rela tion to food, due to the diminishing supply of the latter, is becoming very marked.
 AS yet, we very much doub whether prices have arrived at tn war standard. It may be after peac is reached when the actual wartim phenomena will begin to manifes themselves in prices demanded. Be cause of this fact, after the war i over may witness the highest price of all, which will end with slum when the abnormal conditions o war are removed, and the price oscillate to their old peace tim standard. An industrial, financia and commercial crash is inevitabl then, but in any event it is very un likely that we will see prices of tn necessities of life: food and clothin ever as low as they have been be fore the war. Even an industria panic of titanic dimensions may no bring that about.