Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1917-08-23
A Governnrent-Busin Entente.


The president, through official utterance, has several times COM
mitted his administration to the policy of allowing corporate industry
sufficient profit to retain a stability and vgor which wall insure III
effective aid in the conflict and in the maintenance OF prosperous
conditions. Big business interests, mainly relied upon for the supply
of war essentials, have recognized the existence Of this policy, and
their reliance upon it should encourage confidence in all departments
Of industry.
The policy Of these business interests themselves has been clear
for many months, particularly since this country entered the war.
cooperation with the government. In this attitude as between govern
ment and business there is unreasonable significance.
Business mel of vision have long cherished ideals of such an
understanding and of such a basis of common effort for the nations
welfare a IS n now developing into facts. Moreover the ley relation
ship between government and business is not being lost upon the
ration at large. 1t is being reflected in a lew moulding of economic
and political thought. This is dividend of both moral and material
Importance for the entire country.
Price Fixation.
Uneconomic in ordinary times, price fixation, a a war measure,
is justified now because of extraordinary conditions. War itself is
contrary to economic principles in its immediate effects, and the cor
natural developments. The law of supply and demand cannot regulate
prices in the interest of all or even a majority of the general public.
when the main objective of the nations activities is war.
Prices of essential commodities must be kept within such reach
OF the nation s purchasing power that living expenses shall not pass
beyond the bounds of reason so that general business activities may
continue. Building developments of all kinds, except for certain
manufacturing plants engaged in war work, have practically come
to a $ tandstil. Price regulation OF building materials would probably
restore this temporary suspension. 1t has long been apparent that
the costs of their production. Several are today some 300 and 400
per cent above their levels of two o three years ago, and without
adequate reason. for basic costs OF their production have increased at
most 40 to so per cent.
There are business heads who are hopeful that price regulation
may be extended to their respective Industries a $ they now find it
easy to increase prices and the public responds quickly by reducing
it's consumption. They, however, would prefer normal prices and
normal profits with a larger turnover and the elimination of prices
same condition for the corporations in whose securities he is interested.
There is, of course, no intention to include price fixation a a per-
measure, and its adoption will not mean the setting of any dangerous
precedent for u political course in the long future. During war its
adoption cannot be otherwise than economic, a measure tending to
keep general business operations nearer to normal and producing an
adjustment which will prevent disturbing reactions later on.