New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-12
Unlimited Purchasing Power
May Be Vested in a
Single Head
Plan Would Prevent
Competition in Bidding
Needs of America Will BE
Cared for Before Those
of Europe

dhHlHELOH, may IL ~
tional agreement under which there
will be placed in the hands Of small
commission, possibly of one man, the
purchasing power Of virtually every
dollar of the billions to be loaned the
Allies by this government and the ad-
ditional billions which they will spend
in this country out of their own IN
come. is at present in process Of formu-
lation.
Draft of the proposed agreement has
been left to Secretary McAdoo, who al
ready has held number of conferences
with foreign ENJOYS on the subject.
Great Britain, France and Italy are
understood to have signifed their de-
sire to enter such an agreement. and
other Entente governments are likely
to assume the same attitude.
Discussion of the proposed agree
mont has reached a stage where the
chief benefciaries of the huge Amerl-
can loan have agreed thaI it would be
to the interest of all concerned TO elm
mate absolutely competition among
themselves for American products, and
have signifcd their readiness to pledge
themselves to do so.
To Attain Maximum Efficiency
The agreement. when (rafted, would
have for its aim the attainment OF
maximum efficiency, both for the Allies
and the American government, for
every dollar spent in this country tor
war purposes.
The commission, when created, would
have the widest purchasing powers ever
intrusted 10 any one body of men or
one man in the history Of the world.
|. virtually would be a purchasing
agency for all the world. with the eX-
ception Of the few remaining neutrsls
and the Central Powers. II would
eliminate entirely competitive bidding
among the Allies and this government
for American products, and would seek
TO insure one hundred cents worth OF
value for every dollar spent.
By it's creation, domestic conditions
prevailing in this country for the last
two decades, under which the big pro-
ducer gradually, by combinations and
normal growth, assumed the dominance
in oil markets, with thousands OF Gus
toners abiding by the Price he hxed'
would be almost completely reversed.
Not the producer, but the buyer would
be the dominent factor, for there would
be but one buyer for the belligerent
nations. and through MIN al! producers
in all lines.
No Fixing Of Prices
The plan involves no fixing of prices,
bo,rever First efforts will be con-
fined TO a programme eliminating com
netitiye bidding for the foodstufs,
steel munitions, clothing and count
less other articles which America alone
can supply TO the Allies.
Were there no check upon the efforts
Of the Allies 10 satisfy individual re-
ouirements in this country, 1t is real
ized that their united demands would
send prices soaring, decreasing the ef-
fectiveness Of the money TO be loaned
n them bv the United States. Repet-
tion of this process, officials believe,
would minimize the effectiveness OF
American financial cooperation and Sc
riously cripple the purchasing power
of American money for military. naval
and other needs of this government
Tpon ratification of the proposed
agreement the personnel of the pur-
cbasing commission will be designated
bv this government. 1t probably VIII
no. have more than five members. The
entire responsibility may be vested in
one man.
II will be the duty Of the commission
10 receive the requsitions OF the Tor
e;cn governments for supplies of all
sorts and to execute them equitably.
Under the present plan the commits
sion will not necessarily attempt TO
pnrchase supplies for the United
States. Whatever this government re-
ouires for its military and naval estao-
lishments probably will be purchased,
az in the past, through the War and
Navy departments.
The commission will cooperate with
tktsc and other departments to the
end that there will be no competitive
bidding between any foreign govern
ment and the United States. Ameri-
can needs, naturally. will ocme hrst.
The needs Of the Allies will take the
next place. and after they are salts
fed. it is expected that a residue OF
production will be available for
reutrals.
Prior 10 the entrance of this coun-
try into the war the Allies, through
their fiscal agents here, sought TO place
a cimilar plan in effect, but this pro-
gramme was nullifed to some extent
by the action Of Russian purchasers.
who failed TO comprehend or for some
other reason to help carry out the plan.