Wherever the ratio system comes to be used in actual price fixing, it will be open to the criticism that prices will start pyramiding. For example, in the case of hogs and corn, a guaranteed ratio may increase the price of corn, and this in turn the price of hogs, and so on in a never-ending climb. The reverse is also imaginable. In the case of fixing crop prices by ratio, it is imaginable that land values would constantly increase, and this would increase the price of crops, which again will be reflected back into land, and so on in a never-ending cycle. Economists like to dwell on situations of this kind. They are to a large extent purely imaginary. To stop a vicious rise under the ratio system, a rise which would bring about an over-production, all that would be necessary would be to very slightly lower the standard ratio. In the case of hogs, for example, it might be necessary to lower the ratio from 11.5 bushels to 11.2 bushels. However, in all that is said concerning the ratio method of judging prices, there is no intention to prescribe any definite method of using the system. The chief function of ratios will doubtless continue to be educational. It is hoped that a knowledge of standard ratios by large numbers of people will suffice to stabilize prices at more nearly cost of production and to stabilize production at a point more nearly identical with normal demand. RETAIL AND WHOLESALE PRICES There has been much outcry in recent years against the retailer. Unquestionably, the retailer is working under a cumbersome distributive system which burdens the consumer with prices fully 20 per cent too high. It is commonly recognized that this extra 20 per cent does not represent retailers’ profits, but that it is used simply to perpetuate a system which will cater most effectively to the whims of indolent housewives. The cure for the system is for consumers to organize themselves into co-operative buying associations. When consumers are willing to band themselves together in such associations, to anticipate their needs of staple products by ordering ahead, it will be possible to furnish such products at very little above wholesale prices. In fact, it is conceivable that under such a regime co-operative consumers might buy of co-operative producers. All this, however, involves infinitely more foresight than the average citizen or his wife cares to exercise. Also it involves putting a vast number of small grocerymen out of business. In the long run, this will be a good thing for every one, but the immediate effect will be a great outcry against interfering with legitimate business, and the issue will be obscured by the customary smoke screen used by scared business men.