Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1917-10-03

/ Inc lNilpMing II a summary al Inv iiS
nI u series 81 lectures on price movements 10y
Pref. Irving Fisher oi Yale University. The
lectures are being given NJ Berkeley. Cali
iurnia. Professor / isher H. 4 member "i
K,os-velt'S National Conservation tomm:s-
: on. Fellow Royal Statisricians' Soriciy.
a. A.. A. =. and noted author. economist and
b alth advocate. ana an authority ON ia. sub
jet herein discussed
Before the war the whole world was
Raging with complaints of the high cost
Of living and although the war at first
PAT the question IN the background the
prominent than ever. The newspapers are
! gain wull Of theories as 10 the cause of
this new elevation Of prices, "a well a. of
proposed remedies. The country seems
now, unreasonably, to expect Mr.. Hoover
Ia perform a mira culouS cure.
But the whole discussion shows be
wilderment in the public mind. while there
was never more need of straight thinking
than now. Without ii We are apt TO at
tempt the impossible or 10 hang the wrong
ham 10 the lamp post.
We nave in this problem, a. in most
Ei'H' HibbftAhNs Aou nit 1htNib'uN w
answer: What is IL? WHY j. ite What
of il? What are We going to do about 1t!
In other words, We must study the facts,
the causes. the evils and the remedies. The
first two lectures will he on the facts
about price movements, the present one
being an the history of price movements
before the war and the second on their his
tory during the war.
.iNDEA NUMBERS"
We can get a very clear and exact
picture of the average Increase IN prices
,r the cost of living by means ,i the now
familiar index number Of prices. The
prices NJ various articles ~ not move to-
scthcr tut scatter or dl-prr~e like the
fragments 81 4 bursting she'll. Vet there j.
'lwav~ = definite average movement. IL
therefore, becomes Important to know ex-
actly what ha- h.rn thi~ average change,
I. 2. ~ measure the general level ~ prices
~ one time a. compared with another.
II. during. say. the last month. enc com-
modify ha~ risen ~ per cent and another
has risen 10 per cent the average rise of
The two together ha- been midway between
4 per cent and lU per cent or per cent.
That ~. 1n7 T. the index number 81 the two
a. compared with 100 last month ~ = base
1T comparison. The same method applies
10 more than two prices.
Probably the hest general index number
IN use IN the world TODAY j. thar recently
adopted for Wholesale price~ by DIR. Royal
Mceker. commissioners OF labor Statistics
at Washington. There are three hundred
prices used IN making up this index mum
her. II ~ - calculated that the prices ~
ne more important article taS judged
from their consumption m the last census
YEAR are counted more heavily or given
more weight in making M the average
than are those ~ les important articles
Coal counts more heavily IN the average
than matches and wheat j. gwen more
weight than peanuts.
Ii l. q curious fact, however. that the
most scientifically constructed index nnm-
Der does not greatly differ from the ism
pie average index number. nor does i,
generally make much difference whethe,
very much or only a few commodities are
included.
THE DISTANT PAST.
Index numbers are n comparauveiN
modern invention. Not many good ones
extend back Of 1890. and still fewer have
been completed back in 1860.
J%evons, the English economist. who,
more than any other made the index Nun
her idea practicable. computed a good in
dex number for England back Ia 1852.
Others have computed rough index mum
hers back 10 the Thirteenth century and,