The Penn's Grove record., 1919-08-22
Prices, Money, Profits

RrlceS, MONEY, IAVihS
The hue and cry against the high-
Ell prices of food products ana ths
allegations that food is boarded ana
held for unusual profits has been the
latest crusade in the newspapers:
There is no doubt that the supply Is
smaller because so many worknen
quit the farmers to get extraordinary
and exorbitant wages in making war
supplies. Shorter hours and unpre-
cedented high wages has not only aaG-
ed to the cost of distribution but
labor less efficient. Consequently
with less grown and a much greater
demand prices must rise, from the
regular law of supply and demand.
Further, there has been a bigger
dollar crop made by this issuing OF
Federal Reserve notes to meet the
greater exchange Of labor and war
supplies. The foreign countries have
sent hundreds of millions Of dollars
worth of gold to the United States to
pay for supplies made in this country.
The dumping of tons of gold has been
greater than would have been the
dumping of the silver which so many
feared in 1896 when they were scared
into voting for a gold standard against
/ the free coinage of silver. The
expansion Of credits thru the new Fed
eral Reserve system has exceeded the
demands of the widest want OF the
old time Greenbacker, and free coinage
OF silver advocate.
The money for each person in 1896
was about S23. 1t was increased to
abont S34 in 1914 when the world war
began. The dumping of gold and the
expansion Of Federal Reserve notes
thru the banks increased the money
estimated by different persons, to from
SAT to S57 per capita. That about
equals the amount per capita at the
end of the Civil War when prices were
as high and wheat was sold higher by
the farmers, because the Government
did not restrict the price.
But then the exception clause on the
greenback paper money made a cheap
dollar for laboring men and a gold
high dollar for the bankers and bond
holders. There is no discrimination by
laws of congress between gold com
and other money now. While the lab
orers are getting from two to four
prices for their labor the banker n
bond holders are only getting from
three and a half to six per cent which
will buy only from n half to one
third what it formerly did.
Most of those who are bowling about
the high cost of living get anywhere
from two to three dollars where they
got n formerly. Such can afford to
it and are doing so.
The persons with small and fixed
and salaries are the ones who
are being robbed by the Increased
prices. 1t is not the common laborer
nor mechanic because they have the
supply of money with which to
buy. And they are doing it for the
qualification Of their appetites and
pleasures, besides many are not dellv-
aring the mind and energy to keep up
The production of foods and manufact-
Ired products commensurate with
he greater number Of dollars received.
In many cases they do not equal to
he former production for lesser wages
received.
The higher cost of production of
manufactured goods has been made
mostly by adding the higher cost OF
.abor. The higher cost of distribution
also comes from the greater expense
If labor while most capital is restrict
I'd by the old laws and fixed invest
nents Of from four to six per cent.
While labor is rioting in unprecl-
lent prosperity and not satisfied with
the big increase many capitalist are
growing poorer.
While this may be true, yet there Is
another side as to the large packers
md keepers of stored goods which
nave been restricted or held for higher
prices. The hue and cry went up there
we're millions of such in the store
The Democratic officials at Wash
ington at once needed the cry and
Attorney General A. Mitchell Palmer
at once took action thru the route OF
criminal prosecutions to reach the food
and price manipulators. Many tons OF
such food have been found and the
administration is doing the utmost to
meet the emergency. The people will
no doubt feel extremely grateful that
they have such responsive officials /
office to get the food distributed and
keep the prices from soaring.
On the other hand people must con-
5inue to save as in war time and more
food must be grown before the prices
become normal like before the war.
Work and save is the best remedy.