Evening star., 1932-02-11
RETAIL FOOD COST
IS SHARPLY LOWER
Survey Shows Prices Are
Only IA Per Cent Above
Those of 1918.
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK, February 1.-THE food
industry has been more successful in
adjusting retail prices to reduce in
| comes of salaried people and wage
earners than any of the more impor-
tant lines of business. according to an
investment survey released today by
Frazier Jelke & Co. Food prices are
27.5 per cent lower than at the end
OF 1929 and only 144 per cent higher
than in 1918; they dropped 1866 pc:
cent last year and are 4s2 per cent
under the 1920 peak.
"As against December, 1929" the
study continues, clothing is down 15.5
per cent, furniture, 15.4 per cent; fuel
and light. Ill per cent; rent, 81 per
cent, and miscellaneous items, IL per
cent. Compared with 1918 the miscel-
laneous list is up 1856 per cent, furni-
ture has jumped 67.2 per cent, fuel
and light have advanced 58.8 per cent,
rents have risen 42.4 per cent and
clothing is 35.6 per cent higher. 1t is
obvious that other items in the family
budget will have to be further debated
before they reach the new level Of
food and money incomes.
Cost Ratios.
Government statisticians contend
that food constitutes 33.2 per cent of
the cost of living against 1876 per
cent for clothing. 1874 per cent for
housing, So per cent for light and
fuel, 81 per cent for furniture and
house furnishings and 2l.3 per cent
for other items. On this basis. it is
inquired that the cost of living index
at the end of 1880 was 45s per cent
above 1913. 32.6 per cent under 1920
and 14.9 per cent under 1929. In 1881
the cost OF living dropped 93 per cent.
Food companies have been able to
maintain their earnings in a much
more satisfactory manner than manu-
1acturers and retailers of clothing,
furniture and other items entering into
the cost OF living-and they have done
this while reducing their selling prices
more than manufacturers and distrib-
utors in other lines.
Intelligent and persistent advertis-
ing OF established brands by constantly
growing companies, the remarkable
progress OF chain stores in the retail
grocery feld and the increasing prefer
ence for package groceries have COM
bined to add stability to the basic food
industry. AS compared with pre-war
years, larger percentage Of the Ma
tlons food consumption is Of branded
goods; but there are fewer brands. In
both manufacturing and retail lines,
there has been concentration of busi-
ness In the hands Of fewer and larger
companies.
The rate Of growth in the food in
dustry no doubt has slowed perceptibly
during the past two decades, due to the
slower increase in population caused
oy selective immigration laws. For a
time, an increasing standard OF living
among first and second generation
Americans went a long way to Offset
the slower growth Of population; but of
late this helpful trend has been less
pronounced
| Food luxury consumption probably Is
decreasing but diet fads, which caused
so many taboos a few years ago, no
| longer are such serious problem.
Buying Power Impaired.
Because Of foreign exchange diff
cultieS there has been a loss Of export
business, but sales abroad still are i'm
| portant.
unfortunately. the ability of an i'm.
mense farm population to buy manu-
lactered products other than food has
been impaired by the exceedingly low
price OF grain, hogs, cattle, cotton. DO
extent, the greater decline in food has
! oeen made possible by ruinously low
/ 1arm prices occasioned by overproduc-
ton and loss Of war-cultivated foreign
markets. Cheap food should not Be
regarded as an unmixed blessing; it is
causing lower standard of living in
rural sections