130 TWELFTH REPORT. 



of such a bill of goods in the various years of the decade to index num- 

 bers, I find tlie result shows a relative price of 104.5 in 1901, 109.4 in 

 1904, and 123.1 in 1907. These, however, are the hig-h points. Such 

 truth as there is in the New Jersey figures is best presented by taking 

 three-year averages. The average for the index numbers for the three 

 years 1899-01 equals 99.9; for 1902-04 equals 102.5; for 1905-08 equals 

 107.3. 



It will be remembered that the New Jersey average wage produced 

 an index number of 11G.9 in 1907, Avliich shows rather darkly against 

 the food index of 123. The comparison is difficult, however, in that 

 the i)rices show such great fluctuations, and smoothing the curve by 

 taking two or three-year averages brings much brighter results. 



It is hardly necessary to add that, according to the law^ formulated 

 in the above brief discussion of prices, the advance has come in just 

 tliose commodities which Engel and other investigators have shown to 

 form the great percentage of the laborers' budgets and for which there 

 is a relatively inelastic demand. The result is that the laborer^ is hit 

 in the hardest way, hit "right wliere he lives," as we say, and is hit 

 harder than those of any other class. 



i^Kiuniari/: After indicating that general prices have not been affected 

 by labor organizations I took up the question of particular wages and 

 prices, in the transition noting that changes in ])rice and wage levels 

 become general through changes in particular prices and wages be- 

 ginning where scarcity meets an inelastic demand. As to particular 

 prices the theoretical possibilities of labor organizations were pointed 

 out and the conclusion that there has been no great nor widespread 

 effect upon them. Organized labor has reduced hours, but it is not clear 

 to what extent this means decreased productivih- nor has the reduc- 

 tion been confined to organized labor. There seems to be no great dif- 

 ference in price movements as between strongly organized and weakly 

 organized industries, while the greatest advances have come in unorgan- 

 ized industries. In fact it is not clear that wages have risen adeipiately. 

 Making no allowance for increase in standard of living average relative 

 Avages had risen to a greater extent than average relative prices in 1907 ; 

 but the price and wage lines were converging and I do not carry away 

 an optimistic feeling from my study. The present demands for wage 

 advances being made all around us and largely gi-anted by employers 

 are indicative of the situation and show the hope and the benefit of 

 labor organization. 



April 1910. 



^Including lower-salaried workers. 



