hhhhhmmmmmmmm With great respect, I suggest that if the numbers revealed at the mentioned "westegg" site are to be believed, we would now look to hire a common laborer for $8.00 per day, have a tailor make us a man's linen dress coat for $30.00, buy spareribs for 20 cents per lb., buy center cut ham for 90 cents per lb., and purchase a front quarter of beef for $25.00. Then too, good lumber for building construction should now cost us 20 cents per bd. ft., and a physician would deliver our women of a baby for 60.00. Not here in TN; guaranteed !!!!!!! Enough flogging of this horse for me; all of us should use those numbers as multipliers that we feel solves our comparison problems. Paul
----- Original Message -----
From: Langdon Hagen-Long
To: [log in to unmask]
Sent: Monday, October 11, 2004 8:00 PM
Subject: Re: 1900 prices to contrats with 1850
There are some excellent calculators on the internet today that will instantly provide an estimate on the value of a certain amount of money in any given year compared to today's value. I like http://www.westegg.com/inflation/.
If you want to determine the value of money from the year1600-, or our colonial period, using pounds, use:
http://www.eh.net/ehresources/howmuch/poundq.php
http://www.bls.gov/cpi/ This govt site will give comparisons only from 1915.
http://www.cjr.org/tools/inflation/ is another convenient calculator.
What cost $1.00 in 1800, cost $10.32 in 2003.
What cost $1.00 in 1850 cost $21.11 in 2003.
In 1865, the same item was only worth $11.24 [nearly ½ as much as in 1850]
What cost $1. in 1900 cost $21.09 in 2003. [not much change since 1850]
But in 1915, the item costing $1. is worth only $18.19 in 2003. By 1920 , the same $1. item would cost $10. 19. [or nearly ½ the value of 1900, and less than in 1800]
I've never heard of using a multiplier of 10 or any other number to determine the relative value of money - which is different than the Consumer Price Index. If you use a factor of 40% for 1900, it might work well, by accident. If you use 40% to multiply the value in 1915 or 1920, you will be quite inaccurate. It is also inaccurate for the1880's.
The CPI for 1862 was 30. Divide 30 by the annual average CPI for 2003 . Pretend the 2003 CPI is 480.8. Divide 30 by 480.8, and this yields 0.06. So an 1862 dollar would have bought about 6 cents' worth of goods in 2003. This result is the comparative value. It is easier to use a calculator, especially since every year is different. For data prior to 1915, the govt used statistics from the colonial banks and early American banks, the actual costs of certain goods from account books, advertisements, etc, to compile "Historical Statistics". [yes, there were banks in Colonial America.] Historical Statistics of the United States: Colonial Times to 1970. U.S. Department of Commerce, Bureau of the Census, [1975].
It matters exactly which year is being evaluated, but the item or service itself is also important. While I can still get my laundry done for 1900 prices, [comparatively] I probably couldn't get a doctor to make a house call for any amount of money, much less $63.26 , the 2003 value of 1900 prices. In 2003, my doctor cost $60 a visit. This is the equivalent of $2.85, in 1900, [the value of our dollar is down] which is more than the 1900 $1.00 day visit, but less than the $3.00 house call at night. But the value of the doctor has also increased, due to modern education, certification, technology, medications, and etc.
Whenever I evaluate an inventory, I use the total value, and then use one of the internet calculators to get today's comparative value. But then I go back over any area of interest and use commonsense to evaluate the changes in the value of certain items or services - particularly real estate.
Langdon Hagen-Long
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