| Show t I The DA DAY Y IN I I f. f Stock brokers burdened with wih the duty of finding findig something g to recommend recommend recommend mend to their clients clent for investment turn tur with wih singular unanimity to t food land and tobacco stocks This doubtless is because the arguments for these issues though not necessarily more weighty seem more obvious than the arguments argument that might be advanced for the steel the textile the transportation trans trans- the mining and a number of other Industries A New York stock exchange house Frazier J Jelke elke Co Is Js typical of its is finding that the food industry has been more successful in i adjusting re retail retail re- re tail tai prices to reduced incomes of salaried salaried salaried sal sal- aried people and wage earners than an any of the more important lines of I business Food prices pries are arc percent percent per perl cent lower than at the end of 1929 and only 14 per cent higher than thanIn thanin thanin In 1913 they dropped per cent last year and are ae per cent under uder the te 1920 peak As against December 1929 the study continues clothing Is i down per cent furniture per cent fuel and light 11 per cent rent 62 per pcr cent and ad miscellaneous items Hems 11 per cent cent Compared with wih 1913 the miscellaneous list is up 1056 per cent furniture has jumped per cent fuel and light have advanced per percent percent cent rent rents have risen 42 per cent and clothing is per cent higher It is obvious that other i items ms in the family I budget will wi have to be further further fur fur- ther Camil deflated before thc they reach the in in- in new level of food and money comes 0 e Government statisticians contend that food constitutes 38 2 per cent of the cost of living against gaist per cent for Cor clothing per cent for housing housing housing hous hous- ing 53 per cent for light and fuel 51 per cent for furniture and house furnishings and per cent for other other oth oth- er items On this basis it is figured that the cost of living index index at the end of 1930 was per cent above 1913 per pcr cent under uder 1920 and 19 per cent under 1929 In 1931 the he cost of living dropped 93 per cen cent t Food companies have been able 4 to maintain their earnings in a much more satisfactory manner than manufacturers manufacturers man man- and retailers of clothing furniture and other items entering into the cost of at living living and and and they have done this thi while reducing their selling prices more than manufacturers and anc distributors in i other lines Intelligent and persistent advertising advertising adver adver- tsing of established brands by constantly constantly constanty con con- stanty growing companies the re remarkable s-c- s r- r progress of chain chai stores in inthe inthe inthe the retail grocery field and the in increasing increasing in- in i- i creasing preference for package groceries groceries gro gro- ceries have combined to add stability stability ity to the basic food industry As compared with wih prewar years ears a larger percentage of the nations nation's naton's food consumption consumption con con- is of at branded goods but there are arc fewer brands brad In both manufacturing and retail lines there has been a concentration of business in the hands o of fewer and larger com com- panics 00 The Te rate of growth in the food in industry industry industry in- in no doubt has slowed perceptibly perceptibly perceptibly during the past two decades due to the slower increase in population caused by selective immigration laws For a time an increasing standard of living among first and second generation generation genera genera- tion ton Americans went a long way to offset the slower growth of population population tion ton but of late this helpful trend has been less pronounced Food luxury luxury lux lux- ury uy consumption probably is decreasing lag ing ig but diet fads fad which caused so soman man many taboos a few years ago no longer are such a serious serous problem Because of foreign exchange difficulties difficulties dU- dU there has been a loss of export ex cx- port business but sales abroad still sti are Important Important Unfortunately the ability of an a immense farm population to buy manufactured manufactured man man- products other than food tood has been Impaired by the exceedingly exceeding exceeding- ly low price of ot grain hogs cattle catte cotton cotton cotton cot cot- ton potatoes and other staples To a alar lar large e extent extent the greater decline in i food has been made possible by ruinously ruinously ruinously ruin ruin- low farm prices occasioned by overproduction and loss of war cultivated cultivated ClU- ClU foreign markets market Cheap food should not be regarded as an Unmixed unmixed un Un- un-I un mixed blessing it I is causing a lower standard of living in rural sections I |
