Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-06-25
ECONOMIC PROBLEMS
SOURCE OF CONCERN
Difficulties Over Cost Of Supplies and
Price Of Necessities to PeO-
pie Cause Anxiety.
CIVILIANS FACE HARDsHIps
So Far Government Has Done Fairly
Well as to Prices, but Drain OH
Market Affects Nongovernment
Activities.

NEW YORK, juno 24.-David Law
renee. the Washington correspondent of
the New York Evening Post. sends the
following to his paper:
America has been at war ten weeks,
and. while substantial progress has
been made toward an effective array
OF military and naval strength against
Germany. tho inevitable problems of
economics which war brings are to-
day giving more real concern than the
organization OF the new army and
navy. Plans for the army and navy
are being worked out more rapidly
than had been expected and smoothly,
but the difficulties over the cost OF sup
plies TO the government and tho price
of necessities to tho American people
arc becoming a source OF anxiety sooner
than II had been generally believed
they would be.
The government of the United States
has become factor in the law Of sup
ply and demand. Legislation is being
sought whereby the nation may be kept
we'll fed at minimum cost. but there
is as yet no means OF keeping down
the prices OF coal. steel and other raw
materials which arc vitality related to
the industrial and commercial pros
perity OF the country. Suggestions for
price fixing and pricc-rcEulation have
ranged from one extreme 20 the other.
| and the discussion inside the govern
ment and out of It has brought forth
| moro proposals OF State socialism and
| government ownership than Washing
ton has ever heard OF before. Because
| the price OF coal la soaring. because
| steel is high. because the transporta
ton systems OF the country arc heavily
| overburdcned and finding IL difficult to
meet operating costs. the proposal for
! government cont,ol Of every business
and industry related TO the national de-
tense Is naturally brought forward.
! Tho government has managed to get
supplies at fairly good prices. but tho
| tremendous drain by the government
! is affecting the market price for nom
governmental construction and manu-
! featured articles. And the hardships
which the civilian populations or this
country anc Europe may suffer during
the coming winter unless remedies are
promptly provided arc being pictured
in Washington in grave detail.
FoR TRADE CONFERENCES
WITH TIE GOVERNMENT
To the suggestions that the govern.
nent commanders or reQuisition coal
mines and steel plants right and LEFT.
the conservative officials OF the gov.
ernmcnt-and they are in the majority
! Answer merely that the machinery
for government supervision or even
| regulation Is not ut hand. and cannot
be set up soon enough TO meet the
present emergency. There is one prin-
ciple. however. which is gaining ia
ror with high officials. and which al
ready has been applied in some pur-
chases. That principle calls for con-
ferenccs Of the trade with the govern
ment. In the case Of coal for instance.
all the producers in the country would
be asked by the government TO csti.
mate their possible output. and through
committee or organization SuGGcS.
Il reasonable price for coal to the gov.
ernment as we'll as the general pub
lie. The government would examine
the argument made in favor of the sug
gcsted price. and IL adjudged reason
able by n special commission. il would
be uniformly established. Should it
be believed that the cost OF production
is such as to permit even lower price
with reasonable profit, the government
would insist on lower figure. Here
legislation might be found necessary
TO hx price and compel sales 10 the
pubic on reasonable terms TO the pco-
pie OF this country. Changing costs
OF production would /. :cive equitable
consideration.
Against such theory. there are
| .Ho"c "ho argue mat Inc government
had better not interfere With the ma
tural workings Of the law Of supply
ana demand. But with the government
actually influencing the demand by it's
own needs and the requirements OF it's
alheS. the necessity Of safeguarding
plooGcers themselves from the temp
tations OF inordinate profits through
the reduced supply of raw materials l..
mmendinS itscl: TO government Of
ficials.
MUCH CONFUSION IN
GOVERNMENT BUYING:
There has unquestionabIy been more
confusion about government purcha SEES
man might have been the case had 1
cehtral purchasing commission been
appointed at the outbreak of the war.
To-day. while Lord Northclifse is try.
ing TO coordinate English purchases.
preventing one set OF English buyers
from outbiddinS others for the use OF
Ireisht cars and tonnage, our own
army and navy arc still buying sup
pies without much regard for civiIia n
needs Or the effect on the market price
OF their own purchases
While President Wilson Is pushing
Tor legislation 10 empower Herbert
'1ooVer to deal with the food situation,
ne probably does not want TO precipi
tate another controversy about the
personnel Of the central purchasing
commission. Eut as soon as the food
piiiS are passed, the President will
select a board TO coordinate not only
inc purchases Of our own government,
but those of Great Britain, France
italy and Russia. MIR. Hoover says tho
legislation enabling him TO FIX the
limits OF fooc prices may never have
10 be exercised. Legislation OF the
same potential influence is being su~.
gested to keep the prices OF raw ma
terials somewhere near normal. Dur
ing the next few weeks. 1t would no.
be surprising 10 find the economic sit
uation or the United States with re-
spcct TO the prices OF the principa!
CONNIE dities OF manufacture very n,,,ch
in the forefront OF attention in Con-
sress. which body has about abandoned
hope of adjournins for the summer and
will In all probability stay in session
continuously throughout the war.
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