Daily capital journal. (Salem, Oregon) 1903-1919, 1918-04-13
WHY PRICES ADVANCE

Prices have advanced since the war simply because war
creates an increased demand for goods, products and
labor, and at the same time decreases the production Of
goods, lessons products and makes labor scarcer. The
first two because of the latter. At the same time it causes
an era Of speculation in all manufactured products and
foodstuffs. Recently there is a tendency on the part OF
me people to look to the government to correct prices and
hold them within bounds. This on the face of it looks
easy, but a little examination into it shows there are COM
plications and ramiications but little suspected by the
good citizen who honestly asks why don't the govern
ment fix it?" This is especially true Of manufactured
products, for the element Of the cost of the raw material,
the cost Of labor in producing the same, the increased
cost of labor in the factories, the cost of the little things
entering into the product, like dyes in the wooden goods
business for instance, are all part of the problem. Another
feature is the fixing OF prices so they will not endanger
production. If they are fixed too low naturally those en-
gagged in the business will quit, and if fixed too high,
nothing has been gained toward the reduction of prices.
Besides the prices Of the raw material change often and
what would be a fair price when it was fixed may become
wholly Inadequate within a short time owing to increased
prices of some Of the materials used in the product. This
would cause a never-ending changing of prices to make
them fair to producer and consumer alike, and 1t would
place the middleman in such shape that he would have to
quit business. The arbitrary lowering OF prices just after
he had laid in his stock would be fatal to him. True, the
prices might be raised, and he benefited thereby, but at
the same time the business would be made so uncertain
that it would become a gamble pure and simple.
Apparently there is no way of getting away from the
old law Of supply and demand for the regulating of prices.
When prices are low consumers arc induced to use more
freely of whatever it NAV be, and when they advance the
refraining from the use tends to bring the price back to
its normal again. A national consumers league-couldI
such thing be organized and maintained--would regulate
prices as nothing else could. Through some such organiza-
ton its members could be prevented buying so long as
prices were above a certain figure, and this would soon
bring them to that figure, or if it was too low would cause
the producer to quit, until prices left him a sufficient
profit. The high cost of any article can be reduced by
the simple e~xpedient of refusing to buy it, and so the mat
ter of price control is after all in the hands of the average
citizen, the great masses who form the big army of con-
Until they are willing to apply this remedy
prices will continue to be high, at least until after the war
F. G. Harley, mayor Of Astoria, has filed his petition
and is candidate for the republican nomination for gov
Harley is a picturesque individual with lots of
hustle and considerable fireworks display in his make up.
He says if the people want a live wire they need look no
further than Astoria. He is willing to do away with
prohibition in its s~tricter sense and advocates the use of
wine and light drinks but not a return to the days of the
saloon. This being the case, Mr.. Harley may be put down
now as an "also ran" OF course, with so many candi-
dates in the field, if the old guard that stood faithful to
the last for John Barleycorn, united on Harley he might
possibly secure the nomination. However, if he did, he
could not hope to win at the general election. Oregon
is dry, and went so with the full intention of remaining
way. /