New Britain herald., 1917-08-18
Henry Cleu's Weekly Letter
Especial to the Herald)

nothing that seriously interested the Allies. It. however, served the useful purpose of clarifying and emphasiz- ing the Allies intentions. Their terms are now more definitely and more firmly established and the basis of fur ther popular discussion has been clearly outlined. The Central Power Governments must know, if their peo- pie do not, the man csrditions to which they must eventually submit. The sooner they abandon the present policy of self-destruction, the better for themselves and the world at large
 The Allies are united in insisting upon a peace that means the triumph of democracy over autocracy. At pres ent peace appears impossible because Germany is not ready to accept the
 Allies terms, and evidently will not, cntil compelled either by an Allied victory or a change of heart in the German leaders; the latter being much the more desirable basis of adjustment for all concerned, Germany included.
 The wide application of Government control over business, which is now being so sweepingiy put into operation since passage of the Food Control Law Is necessarily having a smewhat un- settling effect. This, however, will only be temporary, and within few weeks public adjustment to the new regulations will be practically com- plete. The food supplies of the United States are now practically under the regulation of one man, MT. Hoover, who has becn clothed with absolute powers. The policy of the Govern ment in regard to price fixing will un- do, foG Hn O 1.-Two the reason that the risks of the situa- be unwise to interfere with business to an extent that would impair tax-pay
 ing abilities. Extraordinary conditions usually require equally extraordinary means of production and distribution that the natural play of supply and demand became impossible. Commo- dity prices have been soaring and soaring until the food problem became acutely grave; and it was evident that unless some effectual step was taken to check the rise in food and other neces- saries of life through unscrupulous speculation and manipulation, serious public and political derangement would follow. Profiteering developed into Q menace that must be overcome, and the only practical cure was Gov ernment control while war continues. When the war is ended, ordinary in fluences of supply and demand may be allowed to reassert themselves; though it is by no means certain that all of the new Government activities as- suIned on account of the war will be abandoned. On the contrary not few of them will be retained; and all though this country is not prepared to take on tho sociafistic sysenl, sill one of the legaces of the war will undoubt- edly be a much closer regulation Of business by Government than was pos siple before. How far the Government will invade tho field of ownership re- mains to be seen. In this dn ection the movement will be more cautious, and such experiments promise U be con- fined at first to public utilities, such as electricity, gas, trolleys ana other public service institutions.
 The worlds food situation is more serious than generally appreciated. Destruction of life, of wealth and of commodities in Europe has lessened food production in various parts of the world; while the difficulties of transportation aggravated the serious shortage in nearly all lines of animal and vegetable foods. High prices re- suited unavoidably. Many articles of food have doubled in value since the war and high food prices seem likely to continue for some time to come, even after the war, simply because labor will be scarce, wages high, cap- ital dearer and transportation eXpen- sive. The results of Government con- trol of prices will probably be seen chiefly in preventing too marked rise or too much speculation or un- scrupulous profiteering, which in these times would be a crime. No great de- cline in value can be expected through government or any other agency. The scarcity of products is worldwide, and all the governments in the world can- not prevent the natural economic con- sequences of such situation. The only way of bringing prices down is to economize, to avoid waste and to increase the product in every possible direction. High prices and lberal prof it's, or the natural law of supply and demand, will accomplish thls more quickly than any other means. Prof. it's of the American farm sr this year will be positively phenomenal. On the four principal crops, corn, cotton. wheat and oats alCre, it is estimated that, if current prices prevail, the growers profits OF these four articles will reach S6,0OO, 100000 more than last year. Probably this rate of prof. it's will not be maintained, though they will remain very high. Other crops and farm animals are also yielding eX- traordinarv returns; the result being that American farmers whether south or west, are sure to 1evel in an unpre- cedented prosperity, which within few weeks will be reflected in business activity at home. Here are excess profits that would produce an enor- nous revenue if within reach, but they are practically exempt because they are looked upon and treated as a priv