Montana labor news., 1937-12-16
THE PRICE PARADE

In month OF June, cost of living,
as represented by articles purchased
in department and other stores,
measured by the indexes of the Fair
child Publications, shows its twelfth
consecutive rise. Quotations on July
l 80 per cent above CORES
ponding period of 1886, piece goods
being among items registering the
greatest advance.
The rise in the composite index
of all such goods-covering mems,
women's and infants apparel, as well
as furniture, carpets, luggage, china,
electric household appliances, etc
between May, 1888, and July l, 1887,
was ver 38 per cent. DAILY News
Record, 7-13.)
Rise in these prices has had its
effect already on unit volume sales
which fell in May and June COM
pared with a year ago. Federal
Reserve Board report on department
store sales for June showed an aver
age gain of 7 per cent in dollar
sales. But as prices of these goods
in this period have gone up over 8
per cent, it is clear that the actual
volume of goods moving into the
hands Of consumers was less than
a year ago.
Rents, which make up from 20
per cent to 80 per cent of a typical
family budget, deserve special at
tention. AS J. D. c. Weldon puts
it in Magazine of Wall Street (7-3):
"Of all the elements in the average
consumers cost Of living this one
has been, and is, advancing at the
fastest and most persistent rate. It
advanced nor than 10 per cent
during 1886 and advanced an addi-
tional So per cent since last De-
cember. Rents are now back close
to the 1929 level and less than IA
per cent under the abnormally high
1928 level. They are quite certain
to go higher. He points out
also that incidentally, rents are
rising faster than the cost of build
ing"
A notice posted recently by the
Rent Committee of the United Auto
mobile Workers of America, Local
1859 of Pontiac, Mich, reflects what
has been happening in industrial
centers in the middle west and else
where: "Rents of members of our
union have been increased in some
cases as much as $50 per cent over
that paid one year ago. Average
increase is so per cent" It also goes
on to state that 1.-THE Average Rent
Increase Is Approximately Fifty Per
Cent Higher than Actual Increase in
Earnings" of auto workers affected
by the rent steal. (Iron Age, 6-17.)
"The consumers ability to pay
will be tested this fall and winter
by a series of price increases affect
ing nearly every item in the family
budget" New York Herald Tribune
reported Glib, after a survey made
in Chicago. High grain and meat
prices will add substantially to the
cost of the necessities of life" it said,
giving also detailed figures on the
probable rise in furniture, clothes,
homewares, etc.
Here are a few other items indi-
eating the trend in the next few
months:
Coats and suits for fall sale will
show an advance of "up to rs per
cent over last fall" with compare
tive dress prices likewise higher, ac-
cording to report in New York Times
I'D at the opening of the buyers
fall season in women's garments.
Mems clothing prices are set for
10 per cent to Is per cent higher in
the fall, the next rise involving an
advance of from $3.50 to $40 a suit.
Rug prices will be shot up another
5 per cent to 10 per cent over spring
levels. Commenting on this, Bust
ness Week (7-3) notes that War
preparations played a part in forcing
up wool quotations." which are par
ticularly important to the rug and
carpet industry because of the large
proportion of imported wool used
in their manufacture. Carpets that
brought $25 a year ago are now
marked up to 1895. (New York
Times, 7-8.)
Furniture prices, announced at re-
cent Grand Rapids Exposition, were
from 10 per cent to rs per cent over
prices of the spring of last year.
auto prices will 60 up" says
Berens' Bulletin, Wall Street dope
sheet issued "for private circulation
only" This rise is almost certain