THE COST OF LIVING.

Taranaki Daily News, 19 April 1921, Page 5

THE COST OF LIVING.

THE- POSITION IN AMERICA. REASONS FOR HIGH PRICES. By Telegraph.—Press Assn.—Copyright Received April 18,. 10.40 p.m. Washington, April 17. President Harding asked the Federal Trade Commission to inform him whether the cost of living in the United States had declined, and the commission has reported that the cost is too high, and must be reduced before a normal volume of trade will restore business to healthful conditions. The report says the fundamental factor in the cost of living is the shortage of houses and the excessive price of fuel, which limit the buying power of the general public for other commodities. Recent declines in prices of raw materials have been uneven’ and inadequately reflected in the final prices to the consumers, firstly because of high transportation rates, secondly because of price-fixing, and thirdly because of the retailers’ unwillingness to take losses where they had bought goods at high prices. The report points out that .the farmers face strongly organised foreign purchasers of American agricultural products and strongly organised foreign sellers of products that American farmers need.—Aus. and N.Z. Cable Assn.