Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-05-21
COSTS LOWER But STILL HIGH.

The National Industrial Conference board has lust is.
sued the ninth in its series Of studies in the cost Of living.
AZ in former oases the board has used the index number
OF the United States Bureau Of Labor Statistics is the
basis for is com MUTATIONS, and It has investigated the
prices all over the country OF the articles represented.
Taking the entire range Of items covered the report
shows that compared with a year ago the cost Of living
has decreased materially. but, as compared with the per-
tod just before the war, prices are stu high. The de-
crease 1tnee July. 1890, averages It's per cent, leaving
the average sdl $751; par cent higher than in July, 1920.
In applying such Information - this, consideration
must be given, Of course, not alone to the changes in the
cost OF particular commodities or classes Of commodities,
but to the relative Importance OF these items in the total
budget Where a family ordinarily spends more for food
than for clothing. for instance. a given reduction in food
In clothing costs. The average cost Of light is reported
to have advanced between last November and March. But
1t is not made clear whether this advance 10 in the rata
Per unit or In the total cost per family. II the advance
Ia in the rate. the advance is q very real one, which will
be felt. If the advance is In the cost per family. there
may have bsen no, real advance at all. as more light il
invariably used in the winter than in the summer.
Allowance must also be made for seasonal changes
in q study Of food prieea. Certain foods are always higher
in the winter than in the summer because in the winter
they are difficult to procure and most costly to handle.
Among these are butter. eses, milk and vegetables. With
out any change in general market conditions the prices
Of these articles will naturally be lower July l than March
/, hence the 20 peg cent reduction in food prices reported
as of March 1 represents only q part of the actual de-
c.esset In this class
Rents, fuel and light are reported to have ipcreaaed
in cost since the peak Of general pricea Coal. Of course,
has sold at abnormal figures during the past season. Last
winters coal prices do not appear to be t~usttfied on any
reasonable basis. Rents show wider variations than
any other costs. In some cases they have not, nearly
kept pace with building costa. In others they have run
far beyond building costs The reductions are as variable
as the advances.
1t is evident that in certain lines We have still some
distance to 60 before reaching normal. We need not ex-
peel, within any time that can be foressen, to reach the
pre-wsr basis either in commodity prices or in thu wages
With which commodities are bought In some commodities
this level has actually been reached, but this 10 not gen
sral' nor will 1t b, and the eaEninss Of employed labor
are now. and will remain. away above that level, Price
sIashing on q general scale IL Improbable and undesirable.
Price adjustment In particular cases il called for. and may
be expected. But 1t is apparent that what the situation
demands more than anything else II the stimulation of
production and the facititation OF distribution. With
abundance Of goods and proper facilities for marketing
them. price adjustments will come about naturally and
normally, and the whoIel country viii prosper.