The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-05-31
THE NEW YARD STICK.

The business world seems gradual
ly to be coming around to the view
expressed by Prof. Irving Fisher that
we are on a plane of high prices,
which if not permanent are destined
to prevail for a long time. 1t is be-
You'd the power of all the governments
on earth to change within any short
perod the initiation basis on which
the country is now working. We are
on a paper basis. and not on gold
basis; and this is true not only as to
America, but as to the world. We are
measuring the value of things by an
entirely different yard stick from
that of pre-war times.
Under these conditions any delay in
taking up building work road con-
struction, municipal buildings cor fed
eral buildings, because of the high
cost, would be most upwise. We cam
not stagnate without taking the tobog-
gan slide to ruin. We must build, and
build vigorously and aggressively.
A period of construction activity
far beyond anything which this coun-
try, or any other. has ever known is
the great need of the hour, says the
Manufacturers Record, and those who
halt because they have not measured
the power of the initiation of our cur
rency are making a serious blunder.
High wages, high prices for materials,
high prices for foodstuffs high freight
and passenger rates are all inevitable,
and the wise man is he who, recog
nizing this situation, goes ahead Wig
orously with all of his business plans.
1t is the man of narrow vision who
failsNto see and understand the pres
ent situation.
For nearly five years we did not
build because of the war; Since the
armistice was signed we have not been
able, as d nation, to take up the build
ing proposition seriously. largely be-
cause of the time which it takes for
the architects to prepare their plans
and let contracts. The same thing is
true as to highways and streets and
waterworks and sewerage systems and
all municipal and public work of this
kind. But many people held off be-
cause they hoped for lower prices.
| They had entirely failed to measure
the influence of the worldwide infla-
ton, which necessarily means high
prices for foodstuffs. for building ma
terials of all kinds, for wages and for
everything which enters into human
activities. We have enormously in
creased the number of dollars in pro-
portion to the quantity of things pro-
duced and consumed, and, therefore,
measured on this basis prices have
enormously advanced. This initiation
cannot be curtailed for a good many
years without a financial and indus
trial collapse which would shake the
civilization of the world beyond any
thing that we have known.
The effort of those who would
break down the price of materials and
labor and foodstuffs is wrong. There
can be no breakdown without chaos
while initiation lasts. and all of the re-
ports about the high cost of living and
the high cost of building materials
which are put forth in such a way as
to create the impression that these
conditions are artificial endanger the
welfare of the country, for they create
an entirely erroneous impression.
We must necessarily adjust our
selves to higher prices. We shall have
still higher freight rates than we now
have. The public service corporations
of the country will be forced to charge
more than they are now doing, and
even those that have advanced their
prices will probably make other ad-
vances. The railroads can hardly ex-
list even under private management
at present freight rates, as high as
these are as compared with other war
figures.