Daily capital journal. (Salem, Oregon) 1903-1919, 1917-07-11

New York, July 7.-Busness is mort
or less perplexed by the intrusion o
innumerabe new government activities
Government regulation has come will
a rush in all directions; in the office
in the shop and in the home. There il
scarcely any sphere, public or private
into which the long arm of the govern
ment does not 60, or shortly will go
and this mvement has FAR exceeded tht
expectations of its most enthusiastic de
votees. Much of this new legislation is
accepted as necessary patriotic sac
fifice. Little thought is given as to its
permanonce after the war. Some Of II
will undoubtedly be repealed, while con
siderable will remain. For some time
past industry has been mobilized for
war purposes and this week two very
important measure are about to pass
the war tax bill and the food bill. Cap.
ital and labor alike are feeling the
pressure from this new legislation, and
In the vast majority Of eases both pa
triotically submit without question. In
all probability industrial mobilization
is approaching completion. Several of
the principal mineral industries have
been placed under. government control;
agriculture is rapidly being drawn un-
der the same influence, food, wool, rub
her. etc., having already been placed
under control and now the bringing of
cotton into the fold is under discussion,
although for long period it was ex'
necsed that this staple would escape
owing to the large free market in which
1t Is conducted Thus lar government
control has worked with relatively lit
tile friction, thanks TO our 'profitng by
the experience of other nations, though
the question Of prices appears to be
the most difficult one with which to
deal. In the minds Of some individuals,
the law of supply and demand has com
pletely broken down under the stress
Of war; hence the call for artificial reg
ulation comes with increasing force.
naturally, from those who feel present
excessive prices most keenly. Initiation
and hieh prices always follow war, be-
ING the inevitable sequence of waste
and destruction. The government may
be able to control ilegitimate specula-
tion. and possibly establish maximum
nriees with some success; but thus far
aIl efforts to control or actually Tx
nrices have been unsuccessful, even in
Great Britain. where the attempt has
under favorable conditions 1t is finl'
ly beginning to be appreciated that
pfice fixing By government authorities
= in direct conflict with the inevitable
law NJ supply and demand. We are now
finding that in ordinary times the
ouickest and surest means of lnereas
ing the supply is to advance the pr,ee
"a those who want commodities more
nriqRa rise TO pX=
tremes they soon correct themselves,
nrovided there be no artificial preven-
tion But, if there is such prevention,
such as monopoly, corners, eNeesslNe
aneeulation. etc, then the government
is justified in intervening. II TO-DAY .he
Government were to arbitrarily reduce
the price of steel, or copper, or wheat
or cotton, it would probably do more
harm than god through forcing the shut
down Of high cost producers, thus lessen
ing the supply and so aggraNatihs n m
stead of relieving a bad situauon' -
arbitrarily cut down the prices Oh .ne
low cost producers would lmlt profits,
il is true ;but it would also decrease sup
plies, and intensity rather thah m'.i'
gate the crisis. When people want com
modities more than money u Is pest ~
let them take their choice, leaving ene
final adjustment to time Ihere may
be a few cases, very rev, WhSte tne
should step IN to aHeNla'e
4 crisis, particularly IN food corners,
but as a rule artificial cures only MAXI
matters worse by violation OF natnrai
laws, which in the end work out 'heir
own solution more surely ana more SAT,
isfaetorily than can be done py amp
1t is to be hoped the aulliln
istration will go slowly in the matter !
of price fixing, because If protlts OF low ]
cost producers become toe great, as =
war measure they can easily be oitset /
by taxation. .a
to grant the railroads tue
desired Is per cent advance IN rates
was disappointing. though not surpris
inc. Moderate concessions we're haae
"a some lines, but not sufficient 10 com,
nensate the roads for the extra cost /
II labor. materials, fuel, etc. There is
but one thing for the rail-
,oads to do, that is eeonomizs. ALREADY /
,everal hundred trains have been win
lrawn on the Pennsylvania, New YORK ;
sentral. New Haven, Erie and other l
mes. and more lines will follow their
xaaple. Meanwhile the roads must
cen up their service; also their credit,
: fhev are to raise funds for necessary
and expansions. Railroad
pxelopmenf At present 1t at stand
in and a considerable mileage Is IN
.reireris hands. The country Is grow
= traffic IS congested and managers
8 confronted with many serious and
.rnlax;ng problems May reports for
roads reported net revenue OF over
( oeo mo nseinst about 81, 100000