Evening star., 1934-04-12
LIVING COSTS RISE /
AT ATM0DERATEPACE.
Buying Power Represented
by Wage Farmers Dol.
lar Declines.
BY GEORGE T. HUGHES.

Special Dispatch to The Star.
NEW YORK, April 1.-THE Ma
tional Industrial Conference Board
computes figures showing that living
costs of wage earners advanced In
March, but at more moderate pace
than from January to February.
The boards monthly survey esti-
mates that food prices during March
rose 0.3 per cent and sundries OIL
per cent. There was no change In
fuel and light and the weighted aver
age Of all items gained O.3 per cent.
These fluctuations are SO slight that
they cannot be taken as indicative OF
q trend. Compared with year ago
however, and translated into purchas-
ing value, the wage earner's dollar
with 1928 as par, was worth 1874
cents In March, compared with 1898
cents in March, 1888. 1t was worth
a little less last July, but neglecting
these intermediate fluctuations, there
can be no doubt that the curve Of
buying power represented by the dollar
is declining.
Labor Costs Increased.
Moody's spot commodity index is
now roughly 10 points under the high
of last Summer, made on July ID.
when figure of 1889 was reached
taking December 81, 1881, as par
For over two months the range has
held within limit of two or three
points 1t was 140.4 on February l6
and 1867 on March %. On Wednes-
day it was 1878.
Here, too, the data are insufficient
to establish trend, but, looking back
to last Autumn. we find that the fig
ure was down to 1888 on October l6
In other words, the present level is up
some 20 points from the low of the
react ton and down only 10 points
from the previous high. If any con-
clusion is warranted, it is that the line
Of least resistance for commodity
prices Is upward.
The inferences from the statistics
are supported by other considerations
Raising of wages and cutting of hours
increase costs, which ultimately must
show in prices. Every time a labor
dispute ends with the employees
winning even a partial victory-and
so far there have been no defeats
1t points to a higher charge to be paid
by the consumer. There is no escape
from this sequence of events.
AS these higher costs work back to
labor, they create fresh demands for
increased compensation, and the
process is repeated.
Easier to Sell Goods.
All business men know that 1t is
easier to sell goods when prices are
advancing than when they are de-
clining and, other things being equal
rising prices spell prosperity, or at
least prosperity to every one who can
protect himself. Those living on fixed
incomes and those dependent on fixed
salaries find it most difficult. but the
present price level is not high by any
normal standard and there is nothing
to be alarmed about yet.
The chances are that without in
n tionary action by Congress prices
would rise of themselves, more or less.
OF course, there is strong sentiment
for imitation, as witness the strength
of the silver faction in the Senate.
The friends of the farmer are too i'm
patient to allow natural forces to do
their work. They must accelerate the
movement.
1t becomes all of us, then, to ad-
Just our affairs to the outlook for a
decreased buying power of the dollar.
Stock marketwise. this means the buy
ing Of equities. and that is what is 60
ing on now. 1t is not primarily spec
ulative maneuver, but a tangible evi-
dence of an economic situation.
SCopyright 1884, BY the North American
Newspaper Alliance. Inc.)