The labor journal. [volume] (Everett, Wash.) 1909-1976, 1920-01-09
WHEN, f EVER, WILL
PRICES COME DOWN..
Interview on Prices and Cost
of Living, with Royal Meek
er, u. S. Commissioner of
Labor Statistics.
bureau OF Labor Statistics)

everybody is anXIOuSly Watchlnf
the course of prices and even more
anxiously 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 a 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 con-
slider the causes which have brought
about the remarkable rise in prices
since 1915. These causes may be
summarized as follows:
CD By far the most important
cause of increased prices is the
enormous addition to the circulat-
ing medium, money and its substi-
tutes. during the past four years;
(2) Decrease in the actual phys
ical quantities of goods produced
and eXchanged
co Manufacture for and pur-
chase by the governments of the
world for war and other purposes /;
and
(4 Changes in the demands for
and the supply fo goods and serv-
ices.
If prices are to lowered, the
causes operating to boost prices
must be attacked. The amount of
money and checks in circulation
must be appreciably 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 extraordi-
nary demands for goods new and
old must either be curtailed or pro-
duction of these goods expanded to
meet the needs.
The financing of the war has
made two dollars grow where but
one dollar grew before. This cou-
pied with the fact that there has
been an enormous destruction of
economic goods and of the farms,
mines, forests and factories supply
ing these goods explains the enor-
nous 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 smaller number of commod
tiles, prices are bound to remain
high. 1t will take a long time to
deflate the worlds inflated cur
rencies or to initiate the worlds de-
flated supply of goods The prof
iteering is being blamed on all
hands for the increase in prices.
Undoubtedly, profiteering of a most
reprehensible sort has existed and
does exist today, but the profiteer
is a result of ever increasing prices
rather than a cause thereof. His
Influence in boosting prices is neg
igible. If all the profiteers in the
world could be apprehended and
thrown into Jail or lined up and
shot, it would have no appreciate
influence upon prices.
1t has been suggested that the
high prices are psyche
ogical in origin and that prices
will fall just as soon as the people
1 be made t5 THINK falling prices
If course, psychology is involved
n every price, but the larger guam
titles of currency and the smaller
amounts of commodities are physi-
al facts that no psychic legerde- !
main can overcome.
| see no prospect of any consid-
rable fall in prices for several years
o come. 1t will be impossible for
he gvernments of the world to pay |
IF their debts very rapidly. On the
ontrary, there is every reason TO
pprehend that credits must be is
ued to foreign governments, for
ign manufacturers, and foreign
BUSINESS men, in order to rehabili-
ate the broken and shattered indus
ries of Europe. This being the
ase We may expect that larger vol
mes of checks and credit instru-
lents will be thrown into circula-
ion. thus boosting prices still
igher. If it is impossible to re-
uce the volume of the worlds in
ebtedness suddenly, it is even more
to increase the quantity
f the worlds goods suddenly. OF
curse, the worlds productive forces
re being marshalled as rapidly as
ossible in order TO increase the
from farms, forests,
lines and factories, but this is nee