Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-10-09

The country is sick with prosperity.
DR.. Clyde l.. King, Of the University
of Pennsylvania, noted economist and
government adviser on economic prob
lens, makes this diagnosis of the high
cost of living.
In an interview Doctor King pointed
out that:
The United States is the creditor
nation of the world, yet cannot COM
pete in world trade with Germany.
Forced liquidation at low price Of
vast stocks of food in storage is likely
to result in widespread bankruptcy,
Food costs probably have reached
their peak, and from now on down
ward trend may be locked for.
Shoes and clothing are likely to be
dearer rather than cheaper this winter.
Building materials are due to stay up
in price for perhaups another year.
justment downward here until normal
conditions are restored abroad.
Approves National Defense Report
Destor King thoroughly approves the
reportAon the high cost of living issued
recently by the United States Council
Of National Defense, over the signatures
of Secretary of War Baker, chairman
of the COUNCIL, and other members Of
the cabinet.
In brief, the report advised the people
Of America to work, save, co operate
and produce.
Better standards of living, states
the report, "are impossible without the
production of more goods"
"The report" said Doctor King
"shows the huge amounts of food in
storage, greatly in excess of the quantity
stored last year.
'The added price at which this food
went into storage must be taken into
consideration, however, if one is to get
a clear view of the situation.
Butter, for instance, went in this
year at about fifty one cents a pound
last year, at about forty one. While
it is true that about 20 per cent more
butter was stored this year than last,
it is true also that it cost its present
owners 20 per cent more to buy.
'This has kept down somewhat the
usual seasonal advance in the price oi
butter. The rate of increase in the re
tail price has not been as great this
fall as year ago. Though this fact
is keeping the normal advance down
the higher purchase price in the spring
prevents any great reduction of the
general price level.
Food Stored at High Prices
1.-THE same thing is true of other
2 commodities. Cheese was put in Stor-
age at 25 per cent higher price; egg
went in at a very substantial increase
1t was SO with poultry, likewise; in
fact, with every food that went into
storage, with the expectation of a
large export business.
Therefore, in my judgment, though
the profiteering drive will bring down
nrices somewhat if cannot have suh
stantial results without bankrupting
somebody.
1.-THE large export business that was
expected has been held up because OF
the rate of foreign exchange. This has
laid virtual embargo on our exports u
This barrier. of foreign exchange
spoken of by Doctor King has become
according to his observations, wal
of gold shutting the United States of
from world business. The worlds gold
is here in the United States, he points
out. Every nation owes this country
money. They cannot pay their debts
in goods, which are the ordinary me-
dium of international exchange, be
cause they have nothing to export.
The rate Of exchange is against them
their money is at a discount here, be-
cause their credit is impaired. Even
4 the British pound sterling, which used
to be worth from $4.S4 to $4.S6, has
/, shrunk to $4.21h. The French franc
that used to correspond roughly to our