The Washington times., 1914-08-13
PRICES AND EMBARGOES


1t is quite inevitable that prices
must go up when the world confront!
today's conditions. That is one Of
the penalties the world must pay fol
the privilege of having war every
now and then. The bigger and tht
more demoralizing the war, the
greater it's effect on business.
Everything that causes and en-
courages waste must finally find re-
Election in higher prices. The prep
aration of the nations for this wal
have been reflected in prices fol
many years past. 1t has cost bill
lions, in the last generation, to build
up and maintain the armies anG
navies. The energies which these
organizations represented have
been withdrawn from useful produc-
tion. Nobody ventures to guess to
what extent the business of prepar-
ing for war has contributed to make
prices high and constantly high er.
The increased production Of gold has
helped. So has the tendency 10
amassing vast aggregations Of
wealth in the hands of few people.
So has the constant expansion Of the
community's necessities.
The suggestion in some quarters
that export of foodstuffs be forbid
Gen is interesting as showing how
people will get their political
economy on crooked. We have the
biggest wheat crop ever known in
this country. We don't need more
than two-thirds of il at the outside.
We do need the money we can get
for it abroad. If we didn't permit it
to go abroad, we would not be able
to get that money. If we didn't get
the money in that way we would
not be able to pay our balances
abroad, which just now are more in
sistent than ever before on immedi-
ate liquidation. If Europe insisted
on getting gold for what We owe it,
and if we would not let her have the
thing we can give her more easily
than gold, and the thing she wants
even more than she wants gold
foodstuffs-we would pres
emily have our gold drained away
from US in order that Europe might
use it to buy foodstuffs IN other
quarters. The lack of gold would
place our money on a dangerous
basis, and prices would go up just
he same.
1t isn't necessary to get excited
about the boost in prices, until we
-now what is really going to hap
pen. A group of big grain merchants
net in New York the other day to
iiscuss whether they would execute
II repudiate their contracts abroad
.or delivery of grain. Before the
var they had contracted to deliver
arge quantities in Europe at GER
ain prices. They had bought and
;tored vast amounts at prices which
we're intended to give them the
modest profit that is required on
uch transactions. But suddenly the
var broke over them, and the ques-
ion arose whether they should carry
'ut their agreements or reptdiate
hem and insist on war prices.
1t is difficult to make a case in
ound morals for these gentlemen
Who want to repudiate their con-
racts. But suppose the Government |
ould, and should, come to their
escue and help them to repudiate
y forbidding export of foodstuffs? |
We would presently see American
rain go to very low levels of price,
While that of other countries, willing
o do business in the markets where
here is the greatest demand, would
e com manding very high prices. We
yould have some hundreds Of mil
ons of bushels of grain on our
ands that we couldn't consume, and
hat would do us no good at all.
letter sell it in the best market,
nd get the money for it to help
S carry on the big business that
be country is called upon to look
fter.
Artificial boosting of prices is the
ming to be feared in such a time as
MS; not the natural and inevitable
lcrease that must take place when
Re worlds production goes down
nd its consumption goes up.