56 AGRICULTURAL PRICES 



than the yearly average, and, corrected for the month of Septem- 

 ber, the price should have been 44.5 cents, instead of 43.6 cents. 

 On the same basis, the seasonally corrected price for butter for 

 September, 1919, was 68.6 cents, instead of 70.1 cents. 



In the main, however, Table 2 is fairly accurate AS it stands. 

 It will be noted that with the exception of hog products, wheat and 

 potatoes, retail prices in September of 1919 tended to be lower 

 than their normal ratio to Dun's index number. 



Possibly a consumers' attack on the price of pork products, 

 wheat and potatoes was warranted in September of 19 J 9. It must 

 be remembered, however, that there was supposedly a world need 

 for hog products and wheat at that time, and that potatoes were 

 unduly high on account of a short crop. 



Consumers should be educated in the use of index numbers and 

 to an understanding of normal ratios between index numbers and 

 the various commodities which they buy. In times of violent price 

 fluctuations they should know just what is the index price of the 

 commodities whose prices are acting in a questionable way. At the 

 same time they should realize that the index price is not necessarily 

 the just price. However, the index price gives a basis upon which 

 the consumer may work. He may then inquire why it is that the 

 actual price departs from the index price. In May of 1918, for 

 instance, the index price of corn in Chicago was $1.25, whereas 

 the actual price was $1.60. The actual price was above the index 

 price partly because of a poor quality corn crop in 1917, but par- 

 ticularly because of an unprecedented demand for breadstuffs. 

 Nevertheless, everything considered, the consumer may have had 

 some basis for resentment against the high price of corn and corn 

 products, whereas if he had studied the milk and butter situation, 

 lie would have seen that the dairy products were being sold at a 

 real bargain. Strange to say, consumers kicked vigorously against 

 milk prices, but had nothing to say about corn prices. Consumers 

 are always concerned with superficial appearances, never with fun- 

 damental causes. And this characteristic of city consumers, com- 

 bined with an unscrupulous, ignorant city press, is a grave menace 

 to our civilization. 



