Imperial Valley press., 1919-12-10
CAUSE OF HIGH PRICES

It NAV be doubted if the housewives league boycott
method for the reduction of high prices can be prosecuted
ecaciousy or with permanent effect At best can only
serve reduce temporarily, the price OF few esSental
staples in the home market. In its operation the boycott
is likely to inct great injustice upon innocent retail deal
back of whom there causes over when they nave
hood for example be held responsible for the high of
butter bacon if is demonsrabe that his profit on these
commodities is reasonable based on the price ne was com
Deed to pay the wholesaler who, in turn charged
reasonable profit his purchase price to the
and producer who declare that they have charged only
reasonable profit the expense OF production ana manu-
facure? o...e....:.,, ,,o ,,o+ 10
veloped very substantial results in positive PROOF OF gen.
era disposition in this direction Investigations begun
months ago throughout the United States INTO aHegatons
Of speculative boarding of necessaes and excessive profits
on the commodities have not reduced the cost of living Or
even revealed why the cost so high Seizures OF hoafdo
sugar for instance amounted to about five million pounds
an absury insignificant quantity compared with the short
age supply, which runs into the hundreds OF mllos
No doubt there are of storage for profit and deliberate
excess charges the necessaries Of life and it would be
emnny legitimate to boycott these unScrupuous oeaer
on proof their nefarous practces but the boycoer
should discriminate against the dishonest and honest mer
chant upon surety that they are nlqng fellow czes as
Professor Melvin T Copeland director of the bureau OF
business research of Harvard uni1rsLersy on the basis OF
accurate reports in the business Of 1871 retail grocery stores
located in all parts the United States and fully TYPICAL
of retail grocery stores generally nnds mat the average
cost of doing busnss these in 1918 IA percent
of net This figure for total expense included rent
owners salary and interest on personal ana borrowed cap
ta The average gross profit in these stores was 1863 per
cent the average net profits was 3 percent OF set safes
The highest figure for net profit shown IN the reports W."
929 percent On the other hand OF the stores showed
loss the highest loss being 65 percent of net sales
Th source Of the evil lies deeper than prohteerng
and hoarding Even tn universal spendthrt habits OF
the American people are not chargeable wholly with the in
centve of prevailing conditions Every competent economic
and financial authority ascrbes the rise in prices to the m
fation of the monetary medium From 1900 to 1914 the
amount of currency circulation in this country had been
xpendnc at the of about S1000000O0 year. due to
the increase in the worlds output of gold and in conse-
ouence of this degree Of expansion prices were con-
santv rising From 1914 1919 the amount of currency
in circulation in this country increased by In
other words currency in circulation has lncreaSd II
percent in the last five years.
1t is the final judgment of these authorities therefore,
that the tremendous enlargement of the monetary medium
hank credits transferable by checs ncomparaby the
most potent cause of the prevailing high prices Deflaon
therefore is the efficient remedynot the housewives boy
colt Relief lies with the and the nancier not
entirely with the ultimate consume.