TABLE 4: AVERAGE COST OF SUNDRIES IN FALL RIVER, MASSACHUSETTS, OCTOBER, 1919
(National Industrial Conference Board)
The complete budget.In Table 5 have been combined the figures given for the cost of a year's allowance of each of the separate items entering into the average family budget. From this it appears that at least $1,267.76 per year is necessary to maintain a family of five persons at an American standard of living in Fall River, Massachusetts, on the basis of prices prevailing in October, 1919. This would require an income of $24.38 per week the year round.
In order to maintain life at a somewhat more comfortable standard, through allowing for slightly more liberal expenditures, $1,573.90 per year will be necessary, or a steady income of $30.27 per week.
In neither of these estimates is any provision made for savings other than insurance. It should be noted, however, that while allowance has been made in the budget for medical care, recreation and insurance, these are to a certain extent provided free if operatives care to avail themselves of the facilities offered. Thus, life insurance premiums are paid by many of the mills; social activities are supported by a few and a nursing service by some. Although allowance for parochial schools is included in the budget, there are good public schools available in the city without cost. Taking these circumstances into account the estimates of the sums needed to maintain an American standard of living in Fall River in October, 1919, are as representative as any which can be reached.
These sums provide for the maintenance of a family of five at an American standard of living, where the father is the sole wage-earner. It should be recognized, however, that the foreign families are frequently larger and that in many of them there are several wage-earners. Their standard of living, on the other hand, is intrinsically lower.
These averages may be compared with the results of an investigation made by a totally different method by the United States Bureau of Labor Statistics in Fall River in 1918 when the average cost of living of 158 families earning roughly from $900 to $2,500 per year was found to be $1,320.84.3For 12 of these families, yearly expenses averaged $826.23; for 56, they were $1,058.30; for 48, they were $1,292.54. Thus, nearly three-quarters of the families were spending about the same amount or less than that determined by the National Industrial Conference Board to represent the minimum cost of living. Making allowance for increases in cost since the Bureau's study was made, the results of the two investigations are seen to be in substantial agreement.
TABLE 5: AVERAGE COST OF LIVING FOR A MAN, WIFE AND THREE CHILDREN UNDER FOURTEEN YEARS OF AGE IN FALL RIVER, MASSACHUSETTS, OCTOBER, 1919
(National Industrial Conference Board)
Increase in the Cost of Living Since 1914
Food.It was difficult to compare the cost of food in Fall River in October, 1919, with the cost in October, 1914, since no stores could be found in the city from which prices of all articles at these two dates could be secured. One store, however, for years has published a "fair price-list" in one of the daily papers, covering most articles of food except fresh meat and vegetables. It was possible to compare prices quoted in this list in October, 1919, with those in October, 1914. Prices of meats were obtained from advertisements of certain stores in 1914 and compared with prices prevailing at the same stores in 1919.
From these lists and advertisements, two 1914 food budgets were constructed and compared with the cost of the same articles in 1919. The articles of food included were as nearly as possible the same as those used in Tables 1 and 2.4The less expensive budget was found to have increased 77%, and the more liberal budget 82% during the five-year period. An estimate of 80% as the increase in the cost of food is therefore representative. This compares with an average advance of 89% up to August, 1919, on the basis of prices in 1913, as shown by the retail food price index numbers of the United States Bureau of Labor Statistics.5August, 1919, prices of food were the highest ever recorded by the Bureau and there has been a decline of several points since that time.
Shelter.Figures and estimates regarding increases in rents were secured from the same agencies which supplied current prices of shelter. From these, it appears that, in general, rents of the better houses had increased most. Since about 1,500 of the very poorest tenements were reported to be vacant, it has been rather difficult to raise the rents of this class of property. The Real Estate Owners' Association voted to increase all rents 20% beginning in August, 1919, and the secretary of the association reported that landlords had very generally put this increase into effect. One owner controlling a large amount of tenement property, who was consulted, had not done so. Another, however, reported increases in rents for his property of somewhat more than 20% in the five-year period ending October, 1919. Individual instances were given of increases in rents up to 40% in some cases. A renting agency set the advance at from 10% to 30%, the larger increase being for the better property.
From these various estimates, it would appear that an increase of 15% would be a fair allowance for the advance in rent of a tenement previously renting for $1.50 or $2 a week, and 20% for a tenement renting for over $2. The tendency of rents in Fall River is distinctly upward at the present time.
Clothing.For men's and women's clothing, prices were collected for the various articles of the budget which had been selling at a specified price in October, 1914. The October, 1919, quotations from the various stores were averaged and the total cost of all items was then compared with the cost of the same articles in 1914. This comparison shows an increase of 103% for men's clothing and 100% for women's. These increases were found to be applicable to children's clothing also. It may be said, therefore, that the cost of ready-made clothing in Fall River increased 102% between October, 1914, and October, 1919. When clothing is made at home, however, the increase has undoubtedly been greater, owing to the fact that prices of yard goods have advanced more than prices of made up garments, although as already indicated, the absolute cost is less. To allow for this, the increase in cost of the minimum clothing budget has been placed at 125%.
Fuel, heat and light.The same method of averaging prices of chestnut and stove coal by dealers was followed for October, 1914, as for October, 1919. The resultant figures show the average cost of three tons of coal at the earlier date to have been $26. The present cost, $40.63, is 56% more than this. If the coal was bought in less than ton lots the percentage of increase was practically the same.
Gas which in 1919 cost $1.05 per thousand cubic feet net cost 80 cents net in October, 1914. This represents an increase of 31%. Electricity has advanced from nine cents to ten cents per kilowatt hour, or 11%.
Combining the cost of fuel, heat and light in 1914 and 1919, it is found that the average increase for the five-year period was 46%.
Sundries.Six tickets for car rides could be purchased for 25 cents in 1914, whereas the present price is 10 cents a single ride, an increase of 140%. If, however, commutation tickets are purchased, the increase is 44%.
The three large down-town moving picture houses have not increased their prices since 1914, except by the amount of the war tax, but there has been an increase of 10 cents to 15 cents (17 cents with the war tax) in some, at least, of the neighborhood theaters.
Doctors' fees have increased 100%.
Although insurance premiums in themselves have not advanced, people have taken out more and larger policies to cover the increased cost of burial and relief. The daily papers have not increased in price, but the Boston Sunday paper, which is now seven cents, was six cents in 1914.
If the increases for the separate sundries items are combined on the basis of the distribution of items within the sundries group, as noted above, the total advance in the cost of sundries between October, 1914, and October, 1919, was 75% for the minimum budget and 74% for the more liberal budget.
TABLE 6: AVERAGE INCREASE BETWEEN OCTOBER, 1914, AND OCTOBER, 1919, IN THE COST OF LIVING FOR A MAN, WIFE, AND THREE CHILDREN UNDER FOURTEEN YEARS OF AGE IN FALL RIVER, MASSACHUSETTS
(National Industrial Conference Board)
The complete budget.In Table 6 are summarized the percentages of increase between October, 1914, and October, 1919, for the separate budget items and for all items combined, for a family of man, wife and three children under fourteen years of age.6From this it appears that the cost of living at a minimum standard increased 73% between 1914 and 1919. The more liberal budget was 74% higher in 1919 than in 1914.7
It should be pointed out, however, that these increases are estimated on the basis of the maintenance of an identical standard in 1914 and 1919. As a matter of fact, standards of living have changed greatly within the last five years. On the one hand, there have been substitutions as prices have mounted, and on the other, wage increases greater than advances in the cost of living have in many instances enabled families to buy more and better goods than ever before. It is not possible to say which influence has been the more important.
Conclusion
From the results of this brief survey of the cost of living among mill operatives in Fall River, it appears that to maintain a family consisting of man, wife and three children under fourteen years of age, at a minimum American standard of living but without any allowance for savings, $1,267.76 per year will be required, or a steady income of $24.38 per week. The distribution of expenses among the different budget items is:
To maintain a somewhat more comfortable standard, again without specific allowance for savings, $1,573.90 per year will be necessary or a steady income of $30.27 per week. The cost by separate items is:
Between October, 1914, and October, 1919, the cost of living at a minimum standard in Fall River increased 73% and at a more liberal standard, 74%, the advance for the separate items being as follows:
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Footnotes
1The following organizations and individuals were consulted: Chamber of Commerce, Association for Community Welfare, King Philip Settlement, Instructive District Nursing Association, Society for the Prevention of Cruelty to Children, Women's Union, Boy Scouts, Immigrant Aid Society, Fall River Cotton Manufacturers' Association, President of the Textile Council, Superintendent of Schools, superintendent of one of the mills, physician in charge of the city clinics for children, a Roman Catholic priest, mill operatives.
2Some of the mills were reported to be selling coal to their employees in small quantities at low prices.
3Monthly Labor Review, May, 1919, p. 154.
4In a few cases, owing to lack of October, 1914, quotations, it was necessary to make substitutions.
5Monthly Labor Review, October, 1919, p. 76.
6The allocations of budget items in Fall River in 1914, as determined by the Board's investigation, do not differ greatly from the standard adopted for the Board's study of changes in the cost of living for the country as a whole, as is shown in the tabulation below. Such differences as occurred may be accounted for by the fact that rents in Fall River are lower than the average for the country as a whole. The differences in allocations in 1919 are accounted for by the differences in percentages of increase of the various budget items. In any locality at any time, a minimum budget would show a larger proportion of the income spent for food and a smaller proportion for sundries, than would a somewhat more liberal budget.
TABLE 7: COMPARISON OF DISTRIBUTION OF EXPENDITURES FOR THE SEPARATE BUDGET ITEMS IN FALL RIVER, MASSACHUSETTS, IN 1914 AND 1919, WITH THE AVERAGE DISTRIBUTION IN THE COUNTRY AS A WHOLE IN 1914(National Industrial Conference Board)
TABLE 7: COMPARISON OF DISTRIBUTION OF EXPENDITURES FOR THE SEPARATE BUDGET ITEMS IN FALL RIVER, MASSACHUSETTS, IN 1914 AND 1919, WITH THE AVERAGE DISTRIBUTION IN THE COUNTRY AS A WHOLE IN 1914
(National Industrial Conference Board)
7It is interesting to compare the actual cost of maintaining these two standards in 1914 with that determined by a special federal investigation in 1908. According to the latter, it was estimated that $731.64 per year would be required to maintain a fair standard by English, Irish and French Canadian families, and $690.60 by Portuguese, Polish and Italian families. A minimum of existence budget, based on the food allowance of the federal prison at Atlanta, Ga., and with totally inadequate clothing, required at that time only $484.41 per year for five people. (United States, 61st Congress, 2d Session, Document No. 645, Family Budgets of Typical Cotton Mill Workers, pp. 233-245.) The results of the Board's study show that if the cost of maintaining a minimum standard of living has increased 73% since 1914, the sum necessary to maintain it at that time would have been $732.81, exclusive of savings. The cost of maintaining the more liberal standard on the same basis in 1914, allowing for a 74% increase since then, would have been $904.54.