New-York tribune., 1920-05-31
High Cost of Living Remedies

\ vUGNJlCn mas frequently Uecli
called in these columns to the value
Of the work done by the advisory
committee on policies and platform
appointed by the chairman of the
Republican National Committee.
The creation Of such an auxiliary
body was an innovation in politics.
1t involved a courageous recognition
Of the fact that the time has passed
for party platforms hastily prepared
in the turmoil of national conven-
ton and jammed through resolu-
lions committee under stop-Watch
pressure. Under the new method
each topic to be covered in q plat
form can be studied methodically and
the results of that study presented
to the convention when it meets. The
advisory committee tests and clari-
hes party opinion. 1t produces rec
concentrations which fairly reflect
party sentiment and which make the
platform an intelligent and broadly
representative formulation Of party
beliefs.
We print to-day two digests is
sued by the advisory committee.
That on the high cost Of living viii
appeal TO all readers, for there is
nobody who isn't pinched in some
way by the sensational economic
arrangement Of which the high
cost of living is the result The
committee has outlined with admi-
rable scbrety the effects Of this de-
rangement, analysed its causes and
noted the economic remedies which
;re in sight.
Between 1913 and March 20, 1920,
Wholesale commodity prices have
risen from an assumed level Of 100
to 253. Retail food prices have risen
to 200 and ali items Of necessary
consumption, including food, cloth
ing, fuel and light, hl@si0g, furni-
IU1Ct GU, nave lctli ~ 100. ] llN
burden of this increase in living
costs has fallen on all those who
have not been able to secure eQuiva-
lent advances in wages, salaries or
profits. 1t has hit hardest salary
and wage oarners and those with in
comes from investments or fixed al
lowances. 1t has also reduced by
half the value of all accumulatons
and savings prior to 1914.
The committee deals with causes
only in the broadest economic sense
1t puts the blame for the deprecia-
tion Of the dollar of 1913 and the re-
sultant doubling of prices primarily
on the governments expansion Of
currency and credit. We use to-day
twice as much money and credits to
conduct the country's business as we
used in 1914, although the physical
volume Of business is only a tri1e
larger than it was six years ago. In
financing the war the Treasury de-
liberately pursued policy of credit
md currency imitation. Although
hostilities ceased nearly nineteen
months ago, it has onl. recently in
itiated a policy of partial dehation.
This Judgment of the committee
cannot be seriously challenged. The
fiotation Of war loans aud temporary
certificates at an artifcially low in
tercst rate committed the Treasury
to program of forced loans from
the banks AMI prevented healthy
absorption of the war debt by indi-
Vldual investors. EXtravagance in
government expenditure, not vet
checked, and laundering war tax
system have further stimulated in
tiation and pyramiding of prices.
What are the remedies? The
y fundamental remedy is deflation. It
can be brought about by liquidating
the governments floating debt.
through economy in approximations.
additional taxation and refundings
at more normal interest rate.
Checking speculation and excessive
borrowing by the imposition of a
higher bank discount rate-a stem
which the Federal Reserve Board
has now taken-~vill help deflation
along Injurious cumulative taxes
should be dropped and rigid private
economy should be supplemented bv
increased production Of essential
commodities.
Here is program which is sane
and constructive. 1t goes to the bot
tom Of. the imitation and protiteering
evil. That evil inherent to large
extent in war conditions, has been
aggravated by the governments
shortsighted financial methods.
These can be changed by political ac-