COMPARISON OF AVERAGE PRICE FOR EACH MONTH OF 1906 WITH THAT FOR THE YEAR AND OF AVERAGE PRICE FOR DECEMBER, 1906, WITH THAT FOR EACH PRECEDING MONTH OF THE YEAR, BY GROUPS OF COMMODITIES-Concluded.

The general average of the prices of farm products was lower in February, 1906, than in any other month of the year, the average in that month being 4 per cent below the general average for the year. In December the prices had advanced to a general level, 5.2 per cent above the average price of the year, making the December price 9.5 per cent higher than the low price of February.

Food commodities as a group reached their lowest price in May, when the average was 2.5 per cent below the average for the year. In December, however, the average price of food had advanced to a point 5 per cent higher than the general average for the year, making an increase over the May price of 7.7 per cent.

The price of cloths and clothing as a whole was below the general average for the year during the first nine months. The advance begun in September continued through each succeeding month until in December the price was 1.8 per cent above the average for the year. The advance in December over the lowest price of the year was, however, only 2.4 per cent.

Fuel and lighting began the year with the average price 1.7 per cent above the average for the year. There was a general decline in the following months and in June the average price was 2.5 per cent below the average price for the year. Each month thereafter there was an increase in prices. In December the average price was 3.6 per cent higher than the average for the year.

The advance in prices in metals and implements during the year was greater than that in any other one of the 9 groups. In January the average price was 3.1 per cent below the average for the year,

while the December price was 8.7 per cent above the average for the year, making an increase in December over January of 12.1 per cent. The average price for lumber and building materials was 3.6 per cent below the average for the year in January and 2.3 per cent above in December, making an advance from January to December of 6.1 per cent.

Prices of drugs and chemicals took a general downward course during the year, being at their lowest in May. They advanced in December to the same average as in January, namely, 1.7 per cent above the average for the year.

The advance in prices of house furnishing goods began in July, and the December price was 3.6 per cent above the average for the year. The advance in prices in December over the prices that prevailed during the first six months of the year was 5.7 per cent.

Prices of the group of miscellaneous articles fluctuated to a considerable extent during the year, but as a whole made quite an advance, in December being 6.1 per cent higher than in January and 7 per cent higher than in April.

The following table has been prepared, showing for both raw and manufactured commodities, according to the classification already explained, the per cent that prices in each month in 1906 were above or below the average prices of the year and the per cent of increase in December over each preceding month of the year:

COMPARISON OF AVERAGE PRICES OF RAW AND MANUFACTURED COMMODITIES FOR EACH MONTH OF 1906 WITH PRICES FOR THE YEAR AND OF AVERAGE PRICES FOR DECEMBER, 1906, WITH THOSE FOR EACH PRECEDING MONTH OF THE YEAR.

From this table it is seen that there was a greater fluctuation in the prices of raw commodities during the year than in the prices of manufactured commodities. In March, the price of raw commodities was 2.9 per cent below the average price for the year, while in December

the price was 7.2 per cent above the average price for the year. In manufactured commodities, the lowest prices were in January, when the average was 1.6 per cent below the average price for the year, while in December the average was 3.3 per cent higher than the average price for the year. Thus, March marked the lowest prices in raw commodities, while January marked the lowest prices in manufactured commodities. The December prices in both groups were the highest prices for the year. Prices of raw commodities for December averaged 8.1 per cent higher than those for January and 10.4 per cent higher than those for March. The December prices of manufactured commodities averaged 4.9 per cent higher than those for January.

Thus far, attention has been directed to the changes that took place in wholesale prices in the year 1906 as compared with 1905 and the movement of wholesale prices month by month during the year 1906. Attention is now directed to the course of wholesale prices from year to year since 1890.

The following table shows, by relative prices, the changes in the average wholesale prices of the articles for which prices were secured from 1890 to 1906, inclusive. The relative price used in this table is simply a percentage. The base on which the relative price is computed is not the price in any one year, but the average price for the ten years from 1890 to 1899, inclusive. The reason for adopting this base is fully explained on page 279. Relative prices, such as are here shown, are also sometimes spoken of as relative numbers or as index numbers. In computing the relative price for each year the relative prices for all the commodities were added and the sum divided by the number of commodities.

To assist in comparing wholesale prices in 1906 with the prices each year back to 1890, another column is given in the table showing the per cent of the increase in prices for 1906 over the prices for each of the preceding years.

RELATIVE PRICES OF COMMODITIES, 1890 TO 1906, AND PER CENT OF INCREASE IN PRICES FOR 1906 OVER PRICES FOR EACH PRECEDING YEAR.

The relative wholesale prices during the years from 1890 to 1906, set forth in tabular form in the preceding table, are shown also in the graphic table which follows:

RELATIVE PRICES OF ALL COMMODITIES, 1890 TO 1906.

[Average price for 1890 to 1899=100.]

1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906

The table shows that the average of wholesale prices of all commodities for 1890 was 112.9 per cent of the average of wholesale prices for the years from 1890 to 1899; in other words, that the average of wholesale prices in 1890 was 12.9 per cent higher than the average for the 10-year period named.

In 1891 relative wholesale prices declined to 111.7; that is, to a point where the average wholesale price for the year was 11.7 per cent above the average price for the 10 years from 1890 to 1899.

In 1892 relative wholesale prices dropped to 106.1 and in 1893 to 105.6. In the next year, 1894, wholesale prices fell to 96.1, a point 3.9 below the average price for the 10-year base period. In each of the three succeeding years wholesale prices declined until in 1897 they reached 89.7; that is, 10.3 per cent below the average price for the

10-year period. In each of the 3 years next succeeding, wholesale prices advanced, in 1900 reaching 110.5. In 1901 wholesale prices dropped back to 108.5. The next year, however, marked an increase, prices in 1902 being on an average a restoration of the prices in 1890, namely, 112.9. In 1903 prices advanced to 113.6. The next year, 1904, showed a slight decline, nearly back to the prices of 1890 and 1902. In 1905 there was another advance, however, to 115.9, and finally, in 1906, the general average of wholesale prices reached 122.4; that is, 22.4 per cent above the average price for the 10 years from 1890 to 1899 and a higher level than in any other year of the 17 years covered by the investigation.

The last column of the table shows that the price in 1906 was 5.6 per cent above the price in 1905, 8.4 per cent above the price in 1890, and 36.5 per cent above the price in 1897, the year of lowest average prices within the last 17 years.

The relative prices appearing in this table are based on 251 articles in 1890 and 1891, on 253 articles in 1892, on 255 articles in 1893, on 256 articles in 1894, on 258 articles in 1906, on 259 articles in 1895, 1904, and 1905, on 260 articles in 1896 and from 1899 to 1903, and on 261 articles in 1897 and 1898.

Having shown the movement in wholesale prices for the period from 1890 to 1906 in all commodities taken as a whole, a table is now given showing the movement in each of the 9 groups previously referred to. This table gives for each group the relative prices and the per cent of increase or, in a few instances, decrease of prices for 1906, as compared with the prices for each preceding year.

RELATIVE PRICES OF COMMODITIES, 1890 TO 1906, AND PER CENT OF INCREASE IN PRICES FOR 1906 OVER PRICES FOR EACH PRECEDING YEAR, BY GROUPS OF COMMODITIES.