The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1918-12-11
washington Bureau.
Pensacola Journal.
BY George n. Manning.


Washington, d. c., Dec. Prices
OF food and clothing and other things
entering into the cost of living, and
prices of materials of all kinds which
determine the ocst Of manufacture
and building construction will COM
mence a gradual decline about the
first OF the coming year. that Will go
on for several years, Washington Of
ficiaIs believe
With reductions in the prices at
which numerous things can be OBJ
tanned will ocme in consequence ocr-
responding declines in wages gen.
orally.
on increase all along the line in
the purchasing price of the dollar
which for the past twelve months has
declined to the lowest level in many
years, will be the result, and will even
the balance, preventing hardship az
any point.
In this way along with the reduc-
ton Ia the earnings from the high
levels of the past year, made nec-s-
sary to meet high cost of living, will
come declines in the prices of neces-
stiles, making the earning of such
high wages less necessary.
These are the conclusions reached
by any number Of officials Of the va
rious government bureaus here con-
nected with industry and the cenaotrs
and congressman generally who have
watched the balance between earn
ing and purchasing capacity steadily
rise during the war and who now an
ticipate a recession to something ap-
proximating the pre-war basis.
Private Control Near Again.
Washington officials generally ex-
psct that the relinquishing of control
by the government from all lines OF
business will result in reduced costs
OF production and declines in prices
of products.
With the removal OF many of the err
strictionS on coal by the fuel admin
istration there are evidences of lower
coal prices. Reductions in prices of
many articles Of food are also in evil
dence with the modification Of the
food administration 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 put them high in
order to bring about increased pro-
duetion. With the removal OF the
government restrictions on quantity
OF production and costs, business gen.
crafty VIII revert 10 the OlQ DdSlS
of supply and demand instead of fic-
titiously high price.
Take the pfice OF wheat, g. deter
mining facto rim food prices, for in
stance. The government fixed the
price of wheat at $500. The selling
price of wheat at that time was con-
siderably below 1920 but that price
was set in order 20 encourage increas-
ed production sufficient to feed the
United States and our allies.
The government through the vari-
Gus bureaus charged with adjusting
wages, granted increased wage scales
all along the line in order to keep
labor satisfied and maintain the
maximum of production during the
war period
With the governments incentive
and authority to fix high wage scales
and high prices for commodities re-
moved, there will be reductions on
both sides, it is believed, preventing
hardship bot tho the producer and
consumer.
Wheat TO Take Big Drop.
Congressman George NJ. Young
from the Dakota wheat belt predicts
that the market price Of wheat will
drop perhaps as much as 81 within