The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1917-08-23
Supply and Demand Govern Prices in
Time of War as Well as in Time of Peace

The controversy respecting prices
seems to be abating somewhat The
federal trade commission upon orders
OF the administration, is investigating
the cost of producing steel, iron, cop
per, lead, zinc. coal, etc. Nobody In
the possession of his senses and any
expert knowledge expects anything
useful to come of this. The under
taking Is in magnitude analogous to
the physical valuation Of the railways
In many branches, the determination
of the cost of producing copper, for
example, the problem is insolvable, i'm
possible. In the meanwhile the execu-
tive departments are continuing to
consider the question on their own ac-
count. There are rays of hope and in
6ications, IL we read correctly between
the lines, that Washington is obtain
ing a clearer perception Of economic
conditions.
Let us concede that the officials in
the departments are animated by the
sincereest motives to do the best that
cede, moreover, that in previous wars,
even so recently as the Spanish war,
there were scandals between the gov
eminent and business interests, in
which the latter did not appear in the
best light Let us concede further
that the plan of the advisory council
of national defense in organizing sub
committees in. the respective indus
tries was not the best thing
On the other hand Washington
should not have been so slow in awak-
ing to the fact that the business in
terests of the country are just as pat
riotic as anybody else. In the talk
about the poor being conscripted for
their services, wherefore the rich
must DO their share by submitting to
the conscription of their money, there
has been a good deal of perversion Of
thought. even of nonsense In the
first place. the services of the rich are
just as much subject to CONSUMPTION
as are those of the poor. In the second
place, the rich have never demurred
to the CONSUMPTION of their wealth.
On the contrary, they have subscribed
with wonderful liberality to the Red
Cross fund, have assumed the bulk of
the Liberty loan and have faced the
prospect of the enormous taxation with
the utmost cheerfulness All that bus
mess has asked of Washington is that
its organization be not so tempered |
with 1t that 1t will fail to run smoothly |
and will fail to produce the earnings
out of which taxes are expected
The organization of business is a |
delicate thing. There are relationships
spreading over the entire world that /
are in perfect accord. Let some al
teration be ignorantly and suddenly
made in New York, there may ensue
disasters in remote parts of the coun-
try. We have already had an exam a
pie of this in the labor troubles that
have spread through the west, which
are directly attributable to the govern
nent's threats to reduce prices for I
commodities, and have already had the S
effect of restricting the production of {
such necessary things as copper and 9
cad at a time when the maximum pro- {
luction is needed. q
All the talk about suspending the
aw OF supply and demand has been I
oolish. That law is going to continue q
Q operate, just as 1t always dhas. The t
ieterminative factor as to price is how e
much production is needed. The price s
Viii be what will induce the last part z
y that production to be made. In N
very industry there win be differences g
n the costs. and consequently in the Il
profits OF the producers. In the case Ct