The Washington herald., 1918-11-12

prices, but the Department of Labor
does, and this index shows a de-
crease in wholesale prices from s.
per cent over 1913 basis TO 70 per cent
over the 1913 basis for the three
months ending July /. 1917, and July
J. 1918, respectively.
Thus all indexes show an increase
in farmers prices and a decrease in
wholesale prices of food during the
year ending July /, 1918 In other
words. a great reduction took place
in middlemen's charges, amounting
10 between Is per cent and 80 per cent.
depending upon the basis of cal
culation adopted These decreases
have come out Of the elimination
of speculation and profteering
The course OF retail prices oOrrOb-
orate these results also Since, Oc-
tober. 1917. the Food Administration
has had the services Of 2. 800 weekly.
voluntary retail price reporters
throughout the United States. These
combined reports show that the COM
bined prices per unit OF tventy-foUr
most important foodstuffs were $6.G2
in October, 1917. The same quanti-
ties and commodities could be bought
for ss.55 average for the spring quar-
ter. lgs-that is. a small drop had
taken place.
is Per Cent Increase In Six Months
In october. 1918. the Food Admin
istration retail price reports show
that the retail cost Of the same
quantity of the twenty-four principal
foodstuffs was S7.SS against an aver
age OF sS.55 for the spring quarter
1918, or a rise OF about IS per cent.
1t is obvious enough that prices
have risen during the last three
months both TO the farmer and to the
wholesaler and retailer. On the other
hand, these rising prices, have only
kept pace with the farmers prices
Since the first of July this year,
many economic forces have caused a
situation adverse to the consumer
There has been a steady increase in
wages, a steady increase in cost Of
the materials which go into food
production and manufacture, and in
containers and supplies of all kinds
There has been an increase OF 25
per cent in freight rates. The rents
OF the country are increasing and
therefore costs OF manufacturing.
distribution and transporta tion are
steadily increasing and should in
evitably affect prices. The public
should distinguish between a rise in
prices and profiteering. for with in
creasing prices to the farmer-who
! is himself paying higher wages and
cost-and with higher wages and
transport prices simply must rise.
Inflated Prices the Cause.
Such changes do not come under
the category Of profiteering They
are the necessary changes involved
by the economic differences in the
situation. We cannot have our
cake and eat it," In other words.
We cannot raise wages, railway
rates, expand our credits and cur
rency, and hope to maintain the
same level OF prices of foods All
that the Food Administrator can
do is to see as far as is humanity
possible that these alterations take
place without speculation or prof.
teering and that such readJustments
are conducted in an orderly manner.
Even though il were in the power Of
the Food Administration to repress
prices, the effect of maintaining the
same price level in the face Of
such increases in costs Of manufaC-
ture. transportation and distribu-
tion, would be to ultimately curtail
production itself We are in a
period of imitation and we cannot
avoid the results.
In the matter Of voluntary control
of retailers we have had more diffi-
Guilty, but in the publication from
week to week in every town in the
country Of fair prices" based upon
wholesale costs and type Of service.
there has been a considerable check
made upon overcharEes. The Food
Administration continues through the
armistice until legal peace and there
will be no relaxation OF efforts to
keep down profteering and specula-
tion to the last moment.