The straight corn ratio method gave $4.87 for January of 1907, and $6.84 for January of 1908, departing from the more complex ratio on the minus side by 19 cents in 1907 and on the plus side by 15 cents in 1908. The results are so nearly alike that in the case of hogs we think that it is ordinarily satisfactory to depend on corn ratios alone, altho in the case of such products as milk and butter it is well to include feeds other than corn and to use a method similar to that just outlined. In order to allow the general public to judge of the merits of wage increases, strikes and price advances, it would be well if the ratio method might be applied to manufacturing and mining industries; for instance, in the case of coal, it might be shown (these figures are purely illustrative and possibly are wide of the facts) that 40 per cent of the cost of producing coal is labor, 20 per cent machinery charge, and 40 per cent risk, interest on investment and similar factors, which vary in just about the same ratio as the other two factors already mentioned. Distributing this 40 per cent miscellaneous charge, we get 67 per cent of the cost of producing coal represented by labor and 33 per cent by machinery charge. Now, assume that, in 1920 the labor charge has advanced over the ten-year base by 90 per cent, and the machinery charge by 110 per cent. Multiplying 67 by 190 and 33 by 210 and adding, we find that on this basis coal in 1920 should be about 94 per cent above the ten-year base. If the ten-year base is $3.50 per ton, the proper price for coal in 1920 should evidently be somewhere around $6.80 per ton. Of course, it is obvious that anyone applying the ratio method must be thoroly familiar with the industry under consideration. There should be, however, competent experts in whom the public has confidence, to express for the benefit of the public, in ratio form, the cost-of-production price of all staple products, and possibly labor as well. Our grade schools and our high schools should train their students to have an appreciation of the ratio method of determining prices. An appreciation of this sort developed in the minds of the bulk of our people would do much to stabilize the price system, preventing undue excesses, and yet allowing prices which cover in a fair way cost of production. LIMITATIONS OF THE RATIO METHOD