WHAT ARE LUXURIES? 41 



in the production of these staples would simply lower the earnings 

 of all thus employed to a meager subsistence level. In fact it 

 frequently happens now that there is an overproduction of these 

 crops, resulting in hardship to producers, and in little or no benefit 

 to consumers. 



The testimony of LeGrand Powers, before the United States 

 Industrial Commission at Washington, in 1899, 6 is especially 

 interesting in this connection. 



Question: What have you to say in regard to the decline in the price of 

 agricultural products in the last, say, thirty years? 



Powers: There has been a very large decline at points where the price is 

 affected by the cost of transportation; there has been a less decline in points 

 from which that transportation has carried the produce. There has been a 

 decline, but small, in articles that have not been overproduced; there has been 

 an enormous decline in the articles whose production has increased faster than 

 population . . . 



Question: That holds good in all farm products, grains, cotton, etc.? 



Powers: I believe that that principle in general applies to-day the same 

 as it did two hundred years ago. 



Question: The capacity to consume, by purchase or otherwise, has as 

 much effect on prices of products as the question of overproduction or under- 

 production? 



Powers: That comes in as a factor slowly modifying prices. With certain 

 articles it has far greater influence than with others. The amount of bread 

 which a man can eat, the number of pounds of breadstuffs, including wheat, 

 corn, oats and all others that we use for human food varies but little. We may 

 change the form of it, but the number of pounds a human being eats is sub- 

 stantially the same. He may substitute cornmeal or oatmeal for wheat, but 

 the number of pounds consumed will be substantially the same. The general 

 proposition is not true to so great an extent with articles of food that may be 

 called luxuries. The rule governing the consumption of strawberries or Cali- 

 fornia oranges or pears or fruit is quite different. Their consumption may be 

 increased enormously, and such increase may exert but a little influence in 

 decreasing the consumption of these other things. As showing something of 

 the power to increase the consumption of food luxuries, I will mention the 

 fact that Minneapolis, as a center of consumption and distribution of the 

 Northwest, shows a doubling of fruit sales every three years for the last few 

 years. Population has been doubling once every fifteen years, but the sales 

 of fruit double every three years, or eight times as fast as population. A 

 certain portion of the relief of agriculture must come from an increased con- 

 sumption of these things, which represent relatively a large amount of labor. 

 The increased demand of our people in the United States for these luxuries 

 represents about as much for the farmer as our increased exports. Thus, note 

 canning, which represents one phase of this business. It began about 1865 

 or 1870. Now the amount of fruits, vegetables, fish, and meat that is con- 

 sumed in cans in this country is very great." 



What are Luxuries? The "luxuries" mentioned by Mr. 

 Powers are now looked on as necessaries, rather than as luxuries, 

 particularly the California oranges. The 1914 report of the 

 general manager of the California Fruit Growers' Exchange, 



6 U. S. Industrial Commission Report, Vol. X, p. 186. 



