New-York tribune., 1918-12-11
Judge Gary on Prices

We have cited the suggestion of Mr..
Vanderlip, among others, that the new
use of gold for the support of larger
credit structure may mean that prices
throughout the world have risen more
or less permanently to a higher level;
that, in a word, high prices have come
to stay. Judge Gary, of the Steel Trust,
is able to discover the contrary. In his
address before the Iron and Steel Insti-
tute he asserts that:
eve in this country at least are oper-
ating and living on basis of general
prices that abnormal"
And again:
81 have intimated that values or prices
generally throughout this country are
abnormal and unreasonable. We ought
to get back to a peace basis as soon and
speedily as possible"
Judge Gary states further:
"Ths is peculiarly time for con-
structive thought and action; for cool
heads, for courage, even for sacrifices
when necessary
AS to whether steel prices are out of
the line with other prices in this coun-
try, we could not pretend to say But
we think Judge Gary is unfortunate
when he undertakes to suggest "values
or prices generally throughout this coun-
try are abnormal and unreasonable"
That seems to imply that somewhere
else in the world prices are treason
able" and normal" We have not been
able to discover any such country We
know that in Sweden (not in the war)
the cost of living has risen much higher
than, for example, in England. We
know that wholesale prices in Japan
have risen almost exactly the same as
in the United States. We know that
the huge increase in the price of rice
has been one of the causes of the
troubles in China. We have cited the
fact that a pair of car wheels in Den
mark sells for $34S as against normal
price Of about $40 All are famil-
lar with the fantastic rise in prices in
Russia and in Germany. They are not
so familiar with the fact that there has
been lesser but still violent rise in all
the neutral countries of Europe, not
participants in the war
The only countries, in brief, we know
of where prices are not "abnormal and
unreasonable" are the more distant
lands, which have been shut out from
marketing their produce by lack of ships
These comprise an insignificant part of
the commercial world. If we were to
ctrltp ,,f
the commercial world not isolated by
the war we should guess that the aver
age rise has been, if anything, some
what greater than in the United States
that is, something above 100 per cent.
If we mistake not, the average selling
price of the products of the United
States Steel Corporation is not more
than 100 per cent above, say the four
year average preceding the war.
In brief, we cannot but feel that
loose talk about "getting back to a peace
basis and about prices Gin this coun-
try being "abnormal and unreason-
able" is misleading and disturbing to
the public mind. We know that for
some time at least the cost of living in
this country cannot be much reduced.
Judge Gary himself says that it would
be unfair, therefore, to attempt heavy
reduction in wages. Steel profits may
permit of a heavy reduction in steel
prices; but this does not mean general
lowering of prices.
We have gained billion and a quar-
ter of new gold, which has been used
to create an added volume Of credits of
six or eight billions. This expansion
of credits, currency or gold holdings is
true Of all the great trading countries
England. France. Germany and all the