The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-10-02
Farm Price
Hike Cure
for Nation
Need of Placing Products on
Same Cost Level as Other
Articles Is Pointed
Out.
Initiation Is Foreseen
BY MARK SULLIVAN.

washington, Oct. I'm Washing
ton last week, we came close to de-
termining whether the country is to
so on toward a basis Of higher cost
OF living because OF government
action; or to make further progress
in the direction already taken by nor
NAL economic forces toward a re-
duced cost of living. In the presenta-
ton of the troubles Of the wheat
farmer last week, and the responses
Of government officials, probably the
most sigificant utterance was a SEN
tence in the latter part Of state
ment given out by Secretary Wal
lace of the Department Of Agricul-
ture. He said:
"If, as seems evident. we admit
ourselves to be on a permanently
higher scale of industrial wages and
consequently higher cost OF produc-
ton In industry as well as agricul-
ture a normal relationship can be
restored only by bringing agricul-
tural prices up to somewhere near
the level of other prices"
IL we could know certainly whether
this acceptance of permanently
higher level of industrial wages and
cost Of production represent the view
and purpose of Mr.. -Wallace's chief.
President COOLIDGE and such of Mr..
Wallace's cabinet associates as Sec
retary Mellon and Secretary Weeks,
it would be possible for business men
10 make fairly definite calculations
within their field and possible also
, for political observers to make fairly
confident predictions within their
field.
Washington seems just now at the
point where it is going to decide
whether to pass into new period OF
phenomena having the same upward
effect as initiation ON the cost Of liv.
ing.
Living Costs Chtaper.
As against the political forces
which make for a higher cost OF
living the natural forces of business
! sworking in the other direction have
recently made much progress. In
oil and gasoline the agencies of over
production and competition have
brought about a reduction of some
thing like 25 per cent Elm the price
to the consumer. In the automobile
work there has been the definite be-
ginning of a reduction in prices.
In the building trades, which have
provided the most striking and stub
born example of high costs, 1t Is be-
lieved by competent observers that
the beginnings of reduction are in
sight. Natural forces left to them
selves would probably pass soon into
a cycle of lowered costs OF pro-
duction and lowered cost OF living.
But an old-fashioned person. slight
ly embittered at some things happen
ing in Washington. said the otnef
6av that American politics consists
Of a competition between organized
groups to raise the cost OF living.
The coal miners who already received
the highest wages in their expert
ence demanded an increase and by
virtue of solidarity got II.
The ex.soldiers demand a bonus
and by virtue of their potency Tor
political action through numbers ana
organization seem likely to be able
TO make the politicians give 1t 10
them.
Bonus Would Hike Taxes.
Regardless OF the merits OF the
bonus il cannot be denied that the
addition of $4,000 100000 or $1,000
600. 900 either to government IN
.,debtedness or to current taxation
will tn that extent temporarily raise
nrices and increase the cost OF ly'
ing. The farm bloc, the railroads ana
some of the tariff beneficiaries are
additional examples Of the groups
whose organized purpose In polltics
is economic self-interest.
1t is a common observation thal
every time any business group mas
itself facing lower prices for It's PROD
,cts II hurries to- Washington III the
full expectation that 1t is the business
of government to furnish relief The
oil men are the latest group to seek
an enpa cement with the government.
There may be virtue in an additional
remark OF the same old.fashioned per-
son N the effect that what America
naeds Ia to disinfect its politics, sep
arate the Sheep OIL courage iio'i ','
goats OF expediency and bring out the
hest in the common American man,
f. a good hard knockdown fight on
simple question of clear principle
It has been long since we have had
such a fight. The past contest on the
league of nations and the apparently
coming contest on the international
court do not meet the requirements
for while they are questions OF prin-
ciple they are too befogged by the
nreiudices and the ease OF inciting
prejudice which is attached TO any
foreign question.
There are some who think-ano
think without any fear OF the out
come-that such an issue OF principle
may come up in the campaign next
wear In the shape Of an agitation Tor
currency initiation. They think 1t pos
sible that the pressure for higher
prices from this group and that.
which 40 far has been happily snort
of the demand for cheap money, may
vet reach that point. 1t is the nat
uraI closing phase Of rising cost OF
living and initiation. Those who give
concern TO this possibility say that