New-York tribune., 1920-01-05
Meeker Sees
No Chance for
p Drop in Prices
Trend of Living Cost Up,
Not Down, Says Labor
Statistician; Bl a m g 8
Initiation of Currency
New York Tribune
W0sAt7sQton Bureau

1NeW OrH Tribune
7 Washington Bureau
WASHINGTON, Jan. 4.-In contra
distinction to the public prediction of
Attorney General Palmer that the high
cost Of living will fall before March i.
Royal c. Meeker, United States Com
missioner of Labor Statistics, gave out
prepared interview tonight declaring
ne saw no prospect Of lower prices for
several years to come. and expressing.
the opinion that the trend of events
lea to the belief that prices might go
still higher.
Dr. Meeker has been in charge of the
collection of statistics on the cost of
i!Vlng for several years, and his predic-
ton was subject of keen interest here
tonight. 1t was recalled that when
MI. Palmer made his prophecy about
prices falling some ten davs ago. his
statement did not show that the De-
partment of Labor. under which Dr.
(Meeker carries on his work, shared his
optimistic views.
In view Of the fact that some Of the
wage disputes now before the railroad
administration are involved with the
promised decreases i'll living costs,
curiosity was expressed as to the eff,
feet of the Meeker prediction on those
controversies.
Meeker's Statement
Here is what DR.. Meeker had to saw
on the subject:
Everybody is anxiously watching
the course of prices, and even more
anxlously inquiring when, if ever, prices
are coming down. The wish is father
to the thought, and it is easy for the
housewife to accept any statement that
prices are slated for fall in the near
future.
Before attempting to answer the
query as to when, if ever. prices are to
fall, it would be we'll to consider the
causes which have brought about the
remarkable rise in prices since 1915
These causes may be summarized as
follows:
."cl) BY far the most important cause
OF increased prices is the enormous
additions to the circulating medium
money and its substitutes. during the
last four years;
"? Decrease in the actual physical
quantities of goods produced and ex-
changed;
'"(3) Manufacture for and purchase
by the governments of the world for
war ana other purposes; and
~ Changes in the demands for
and the supply of goods and services.
If prices are to be lowered. the
causes operating to boost prices must
be attacked: The amount of money
and checks in circulation must be ap
preciably reduced and the quantities of
necessary goods must be increased in
amount. The stocks of commodities
manufactured on government account
must, so far as possible. be salvaged
and thrown upon the market. The ex-
traordinary demands for goods new
and old must either be curtaied OF
production of these goods expanded to
meet the needs.
Two Dollars for One
"The financing of the war has made
two dollars grow where but one dollar
grew before. This, coupled with the
fact that there has been an enormous
destruction of economic goods and of
the farms, mines, forests and factories
supplying these goods. explains the
enormous and worldwide decrease in
the purchasing power (value) Of money,
which causes increased prices.
"As long as the people have twice as
many dollars with which to buy a