Evening journal., 1920-01-05
SAYS HIGH-PRICE
IS A FIXTURE
New Dollar" Demanded to
Keep Pace With Com
modities and Wages
1913 MARK NOW
ONLY AN IDEAL

WASHINGTON. Jan. 5-'If all The
pronteers in the world were appre-
hended and thrown into Jail, or lined
up and shot. It would have no appre-
clable enect upon prices"
THE financing of the war made two
dollars grow where one grew before "
Il sec no prospect Of any consider
able fall OF prices for several years TO
come"
As gems taken at random from a
statement OF living costs authorized
by Prof Royal Meeker, the man who
complies and issues the governments
statistics on wages and prices, those
statements demonstrate that all or
official Washington is not harmOnizing
on the recent refrain that prices are
due for a tumble.
Professor Meeker indicates that the
theory that prices are coming down.
held by 4 Mitchell Palmer, attorney
general. and other members Of Presi-
dent Wilson's "h!gh-cost-of-living cab
met IS all wrong. From his fl-st-hand
knowledge Of the tricks that money,
commodity costs and wages played dur
ing the war period and for the first
year Of reconstruction " Mr.. Meeker
concludes that inflated currency, di-
mlnished production enormous gov
srnment war purchases and changes in
.he demand for goods and services,
combined in q quadruple alliance TO
create a new price level.
Professor Meeker believes that since
the dollar will not buy as much as II
)nce did, the country has got 20 accept
Die new price level and adjust wages
and salaries on that basis Immediately,
or change the basis OF value for the
dollar He definitely joins the ranfe
Of economists, headed by Prof. Irving
Fisher. Of Yale, who have come out
for the new price level and the new
dollar. which would base the value OF
the coin upon its ability TO purchase
certain STANFORD commodities instead
Of upon the value Of precious metal
81 contains.
Mr.. Meeker who. as head Of the
bureau Of labor statistics Department
og Labor. has had ample opportunity
20 chart the disasters Of hard times"
believes that hard times" comes only
in a period OF falling nrlces. And he
delivers himself Of the following warn
ing to those who hope for or advocate
q swift drop In present costs:
People generally are yearn'ng so
intently for lower prices that they
have not though much about the eyes
Of the falling prices. The prices we
kicked about in 1913 have come 20 be
regarded as ideal. Untold distress has
In
,Teases OF the last four years. but the
suffering alrr'dy endured will be null
liplied tenfO'd II prices drop within the
1ext seven years 10 the 1913 level Fall
ng prices mean business depression,
failure and unemployment.
lie favoTs the f. mediate speeding
lp Of production aad he payment OF
iebts with something more than the
requirement Of more debts. Several
years he asserts. Will be required. TO
adjust industry and trade on a nrm
basis again.
In that connection he advocates the
creation OF an international commits
sion 10 study ways and means Of set
ting for working out the new dollar"
or as he phr'ses IL. "the setting IN a
new and relatively constant standard
Of value to d'splace the present none
tary unit which is merely a unit OF
weight and consequently variable in
value Of purchasing power"
"The most important constructive
work." continued Mr.. Meeker. that
con be done in any field is the estab-
lishment OF a stable standard OF value.
SO that all people. rich and moor. en-
ployeT and employe, hondholder and
stOckholder may be spared for all time
the agonles Of changing price levels"
Mr.. Meeker says OF the pronteer as
a mere incident in price Increases:
1.-THE financing Of the war has made
two dollars grow where but one dollar
grew before. That coupled with the
fact that there has been an enormous
destruction Of economic goods explains
the enormous and worldwide decrease
In the purchasing power lvaluel OF
money. which caused increased prices.
As long as the people have twice as
n9ny dollars with them 10 buy a
smaller number OF commodities, prices
are bound to remain high. The prof.
teer IS blamed on all hands for the
increase in prices. Undoubtedly. prof
iicering Of a most reprchens'ble sort
has existed and does exist today. but
Inc pr0lteer is a result Of ever-in-
c:easins prices rather than a cause
thereof"
PROFESSOR Meeker points ont that
further credits must be established II
Eurone is to be rehablita'ed and
therefore, further imitation can be ex-
pected