El Paso herald. (El Paso, Tex.) 1901-1931, 1919-12-20

A FTER ALL. pronteerIng may not
[ n have as much 10 do with the high
cost Of living as we had all thought
It had.
John H. Regan. assistant manager
Of the chamber OF commerce. who
was executive secretary TO Z. A Pc
den. federal food administrator for
Texas at Houston, went into the mat
ter of high living costs and made a
/ report He has since been adding TO
his findings as new information came
to light
Although Mr. Regan finds a certain
form Of profiteering in some in
stances. this fact. he discloses, is only
a drop in the bucket compared with
the great causes OF the high prices
which prevail generally over the
country.
Ten Main Factors,
Ten main factors enter into present
costs, according to the former assist
ant food administrator These lac
tors Mr. Regan lists as follows:
J.. Export demand, largely influenc-
Ing the domestic market
2 Unsettled Industrial conditions.
due to the removal Of millions OF
workers 10 war activities and theif
return with a changed viewpoint
8. Higher labor costs and labor IN
4. Reduced production due TO short
er hours and Increased pay
g. Currency initiation. which has re
suited in reducing the purchasing
power Of the dollar from 80 1-3 per
cent to 80 percent
g. Unsettled business conditions,
due TO fear Of adverse and restrictive
Z. Freight rate advances.
J. S. Exaction OF double profits IN
stead Of single profits, 10 offset loss
through operation Of excess profits
tax
9. Extravagancs OF consumer and
10. Inability to control profiteeri1g
through lack Of laws and delay In
declaration Of peace
Overseas Demand Heavy.
On the subject OF export demands,
Mr.. Eegan explains that reduced pro-
duction in Europe has resulted in a
heavy overseas demand for American
products. with the result that compe-
ittion here for what IS produced here
is much keener than before the war.
The result Of this competition Is
higher prices
Production here is not normal be-
cause 100000 soldiers were taken
from production and other millions
Of men and women were taken from
production and placed in war work
Their return to civil activities has
not been adjusted. with the result
that we neither produce with such
efficiency or in such quantity as be-
fore Also seeing the world has re-
suited in the refusal OF many men
TO return 20 pre-war jobs.
Labor, because OF the demand for
Il during the war and the rise IN
prices, demanded more money and
rnr FL
Currency Initiation
As 20 currency initiation. It is due
to two things. Credit has expanded
for the purpose OF buying liberty
bonds and the gold supply OF the
country has been increased Since Khe
outbreak of the war. il is shown in
lIr. Reagan's researches, net imports
Of gold amounting 10 $1,000, 100000
have been received from other coun-
tries During the war period $780,
000, 600 worth Of gold was produced
in the United States Besides that,
banks loaned credit amounting 70 BILL
lions These loans were not made IN
the form OF actual cash. but chiefly
they have been credited 10 depositors
and checked against Although check
Ing against any given account re-
duced the deposits OF that bank, the
checks went to swell the deposits OF
other banks, so that the whole vol
ume OF deposits was increased with
every bond issue q the government.