The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-11-25
KEEPING LIVING COSTS HIGH.

Prices of agricultural products con-
tinue to decline without producing
any marked effect on the cost of food
to the consumer. Also there is ap-
parent a tendency toward lower
wages for labor. A Chicago packer
Is quoted as saying that business can
not get back to normal until labor
comes down. 1t should be remem-
bered, however, that labor will not
come down, unless it be forced down.
until living costs diminish. Somebody
is holding >out. Price reductions
should be uniform all along the line
IL serious disturbance to economic
conditions is to be avoided.
In many sections of the country Ia
Dor is showing a disposition to con-
tribute to the support of readjusting
business to conditions. New England
textile workers have accepted reduc-
tions in wages rather than see the
mills closed. Forty thousand New
York trucknaen have voted to work an
additional hour per day at the same
wage. There has been a great i'm
provement in the efficiency of work
ers, prompted by the desire to fore
stall wage reductions, it is reported,
and to hold jobs against the return
Of workmen from war industries.
This tendency toward lower wages and
greater efficiency is being opposed by
the American Federation of Labor on
the ground that it presages a strength
ening Of the open shop idea. The
economic fact with which such oppo-
sition must collide is that there are
more men today than there are jobs,
and that there will be still more men
as wartime activities are gradually
brought to an end and the full tide of
immigration sweeps westward from
Europe.
The movement of prices toward
lower levels has gained momentum
during the last two weeks. An in
creasing number of commodities are
being affected and the whole spirit of
trading indicates a growing acceptance
OF the idea that reimbursement must
come eventually and that the sooner
It is over the better Off the country
will be.
The outstanding feature of the pres
ent movement, says a bulletin issued
by the Guaranty Trust company of
New York, is the resistance of the re-
tail dealer to the forces which have
brought manufacturers. wholesalers
and jobbers to an admission that bust
ness can no longer be done on the ba-
sis Of war prices. While wholesale
prices Of wheat, corn, beef, sugar, cof-
fee, cotton, wool, leather, rubber. cop
per, lead, steel and other commodi-
ties have come down, the consumer
is still paying more for flour than he
is still up to last years level. beef
prices continue higher than last year,
coffee follows the same example, and
IN the case of sugar, cotton goods,
woolens, shoes, rubbers and house
hold utensils the reductions do not in
general reflect faithfully the cuts
which manufacturers and wholesalers
have accepted.
If there is any force comparable to
this resistance of the. retailer, con-
tinues the bulletin, it is the determi-
nation of buyers to refrain from pur-
chasing anything except necessities.
As described by A. W. Douglas. chair
man of the committee on statistics, in
the monthly report of the Chamber of
Commerce of the United States. de
mand in all lines is slackening," it is
everywhere ga case of most conserv-
alive buying rather than any great
increase in supply" and I'VE are hav-
ing vivid illustration of how our
usual volume of business is made up
largely of things people do not really
need"