Evening journal., 1918-12-09
PRICES TO FALL
AS WAGES SHRINK
Gradual Decline in Cost of
Living Foreseen by
Officials
DOLLAR WHEAT
WITHIN ONE YEAR

WASHINGTON. D. c.. Dec 9.-Priccs
Of food and clothing and other things
entering into the cost OF living, and
prices Of materials Of all kinds which
determine the cost OF manufacture and
building construction. VIII commence
a gradual decline about the first Of the
coming year. which will go on for sew
era years. Washington oflclals be
llcye.
With reductions in the prices at
which numerous things can be obtafled
VIII come In consequence correspond
Ing declines In wages generally.
An Increase all along the line In the
purchasing price OF the dollar, which
for the last twelve months has declined
10 the lowest level In many years. will
be the result, and Will even the balance.
preventing hardship at any point.
In this way. along with the reduction
In the earnings from the high levels Of
the last year. made necessary 20 meet
high costs Of living, VIII come declines
In the prices Of necessities, making the
earnings Of such high wages less neces-
sary.
These are the conclusions reached by
any number Of officials OF the various
Government bureaus here connected
with industry and by Senators and Rep
resentatiyes generally who have
watched the balance between earning
and purchasing capacity steadily rise
during the war and now anticipate
recession to something approximating
the pre-war basis.
Washington officials generally expect
that the relinquishing OF control by the
Government from all lines Of business
will result in reduced costs Of produc-
tion and declines in prices Of products.
With the removal Of many of the re-
strictions on coal by the fuel admins
tration there are evidences Of lower
coal prices. Reductions in prices of
many articles OF food are also In eyi-
dence with the modification Of the food
administrations control
The basic reason for the high prices
all along the line during the war was
that the Government set the prices Of
almost everything, either by direct or
indirect means, and set them high in
order 20 bring about increased prOduc-
tion. With the removal OF the Govern !
ment restrictions on quantity Of pro-
duction and costs, business generally |
viii revert 20 the old basis Of supply |
and demand instead OF a flctitiously |
high price.
Take the price Of wheat. a dctermin- /
ing factor in food prices, for instance. |
The government fixed the price Of wheat |
lt 1920 per bushel. The selling price |
OF wheat at the time this price was
fixed was considerably below 81 20, but |
that price was set in order 20 encour- |
age Increased production sufficient TO |
feed the United States and our Allies.
The government, through The various
bureaus charged with adjusting wages, |
granted Increased wage scales all along
the line in order 10 Keep labor satisfied |
and maintain the maximum Of prOduc-
IiOn during the war period.
With the governments incentive and /
authority TO fix high wage scales and
ligh prices fer commodities removed,
here will be reductions on both sides,
{ is believed, preventing hardship
10Th TO the producer and consumer.
CONGRESSMAN George NJ. Young. from
he Dakota wheat belt. predicts that the
market price Of wheat will drop per-
laps as much as 81 within the next
welve months. The government has
uaranieed a price Of 81 20 for the next
wheat crop and may lose more than a
million dollars by this guarantee unless
he grain corporation of the food ad-
is continued in operation
o control the market for Americas
wheat for 1920, he asserts.
"The price OF S220 for wheat was
Ixed by the Government agencies for
he last year in order 20 encourage |
OF a great CROP" said Mr..
'oung. "The Allies were compelled 70
axe our wheat and it was sold TO them
y the grain corporation Of the Food
without any quibble
bout price. But next year the demand
or our wheat may be reduced and the
market price may drop as much as 81
bushel"
10 Is pointed out by Mr.. Young and
lher grain experts that even II tbs
rain corporation Is maintained II may !
TN be unable 10 market the crop a. |
? 20 a bushel, and that the government
nav lose several million dollars through |
elng compelled TO sell at a market
rice below that.
After the war industries board goes
ut OF existence about January / an '
emoves the last Of its restrictions or 3
and fixing OF prices for va" q
Us commodities, the present prices
.hlch were fixed unusually high 20 en-
ourage production, will take drop all I
long the line, men in the government
ureaus here in touch with Industry
elieve.