South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-05-27
SPECULATION
IN FOODSTUFFS
Writer Says Law Must ReCog.
nize Difference Between
Professionals and Nom
Professionals.
BY &. =. DUNCAN.
In The Annali-t


In a democracy az a time Of crisis
the people turn either 90 leader or
20 the Jaw for redress. Where opin-
ion is sharply divided on some far
reaching question Of policy IL is the
law 20 which appeal is made. And
so now with the rising prices Of
foOdstuffs. the people decide 90 elm
mate by legal enactment the sPecu-
laiive element from our system Of
distributing food products. Can this
be done by law? n so. with what
effect?
Speculation in foodstuns is in the
popular sense OF two kinds. profes-
sional or organized speculation. and
professional or unorganized
speculation The former is the pri-
mary function of organized ex-
changes like the board OF trade. Of
warehouses. cold storages. etc. The
latter Is the storing mp OF foOdstuds
BY producers or consumers. I'm
popular opinion these two kinds are
distinct. are different as 20 ethics
and effects. and for the most part IL
Is the former at which legislation is
aimed.
The difference in ethics seems 10
be based upon the more OF less CO.
herent belief that "A man may do
what ne will with his own goods. but
that goods are completely ones own
unless he has raised or made them
or has bought them for consump-
ton. a farmer raises his crops 10y
the sweat OF his brow. either di-
rectly Or uy proxy. and they are his
20 do with what be will and when
he Will n he desires TO sell az har-
vest time. well and good if he de-
cides 10 hold for better prices. il is
his own business. The consumer.
too. can buy i'm amy quantity AZ any
time. that is his affair II is every
mans right 10 do as he will with his
own
Professional spectators.
The question is Qaite otherwise
when the group Of professional, or
ganized spectators is considered
In widespread popular opinion. they
are parasites They neither toll nor
spin. nor do they gather the har-
vests They buy and sell wind, or
they hoard up foodstuds and hold
them for high prices In good times
they are TO be tolerated only with
reluctance: in a war crisis they are
TO be eliminated by law.
The effects are also different as
must follow from the ethics OF the
case Where the professional spec
ulator comes into control Of food
STUFF on its way 90 market, ne not
only controls that over which he
should have no right. but he also
demands a compensation for relin-
gushing the control. and thus forces
the consumer 20 pay a higher price
for his goods Where the producer
stores his foodstuns. 10 is supposed
that ne levels out the market price
through the year and probably dis
tinctly lowers the general average.
That is. in one case the producer
gets more for what me has produced
and thus Is encouraged and stimu-
lated 90 further and greater pro
duction. while i'm the other middle
man steps ln and takes "a slice out
Of the producers price and may add
"A percent To the consumers price
II is assumed that the consumer
suffers in the one ease as we'll as the
producer. while i'm the other The
producer benefits and the consumer
who cares what happens Co him.
anyway
For q law 20 reach the producer
hoard or the consumers hoard. II
must prescribe the length of time
that the one can delay his sales aft
er harvest and that the other can
DELAY his consumption after pur-
chase Neither one OF these seems
10 be feasible or practicable. IL is
extremely doubtful 10 such drastic
law could be passed cor enforced In
shirt II would he utterly opposed ga
American business traditions.
Rut il would DE possible To require
nv law an official report of OIL hold
inrs of foodstuns M the source and
8, the home such data would af-
ford evidence of any concerted eff
fort To control the supply az the
source ON the farm. and OF prob
able extravaganza and waste at On,
other end These facts would alst
become a valuable addition to those
obtained bv the commissions of the
various states from warehouses an,
cold storages They would aid very
definitely i'm the adjustment OF sup
NV Ia demand 80 iu The fair dis
tribution of staples.
boarding OF Food.
THAT Is go saw any law that aimed
nj the elimination OF hoardins-
which is unorEauized. non-profes
sional speculation of foodstuffS on
the farm and in the home could no
succeed unless the government ~