he basis of
calculation adopted. These decreases have come out of the elimination of
speculation and profiteering.

The course of retail prices corroborates these results also. Since
October, 1917, the Food Administration has had the services of 2,500
weekly, voluntary retail price reporters throughout the United States.
These combined reports show that the combined prices per unit of 24 most
important foodstuffs were $6.62 in October, 1917. The same quantities
and commodities could be bought for $6.55 average for the spring
quarter, 1918--that is, a small drop had taken place. During this same
period of quarters ending July 1, 1917, to July 1, 1918, the prices of
clothing rose from 74 per cent to 136 per cent over 1913, or a rise of
about 62 per cent, according to the Department of Labor indexes.

Since the spring quarter, ending July 1, 1918, there has been a rise in
prices, the Department of Agriculture index for September showing that
farm price averages were 138 per cent over the 1913 basis, and the
Department of Labor index showing 136 per cent, or a rise from the
average of the spring quarter this year of 11 per cent and 22 per cent
respectively to the farmer. The wholesale price index of the Department
of Labor shows a rise from 79 per cent average of the spring quarter,
1918, to 99 per cent for September, or a rise of 20 per cent. The Food
Administration wholesale index shows an increase from 80 per cent to 100
per cent, or 20 per cent for the same period.

In October, 1918, the Food Administration retail price reports show that
the retail cost of the same quantity of the 24 principal foodstuffs was
$7.58 against an average of $6.55 for the spring quarter 1918, or a rise
of about 18 per cent.

It is obvious enough that prices have risen during the last three
months both to the farmer and to the wholesaler and retailer. On the
other hand, these rising prices have only kept pace with the farmers'
prices.

Since the first of July this year, many economic forces have caused a
situation adverse to the consumer. There has been a steady increase in
wages, a steady increase in cost of the materials which go into food
production and manufacture, and in containers and supplies of all kinds.
There has been an increase of 25 per cent in freight rates. The rents of
the country are increasing and therefore costs of manufacturing,
distribution and transportation are steadily increasing and should
inevitably affect price