The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-11-24

In Minimum or Maximum Prices
But Favors Fixed Specified Price.
| (By Herbert c. Hoover in 1.-THE Ma
tons Business.
We have all listened to the spec
ious arguments Of the siren of high
prices-it is heralded as the mark of
prosperity and to possess economic
advantages. 1t is advocated as a
conservation measure. 1t is true
high prices reduce consumption, but
! they reduce it through the methods
| Of famine. for the burden is thrown
on to that class Of the most limited
means, and thus the class least able
to bear 1t. There is no national con-
| servation in robbing our working
classes of the ability to buy food.
Real conservation lies in the equit-
able distribution of the least neces-
sary amount, and in this country we
tary service, voluntary self-denial
and voluntary reduction Of waste, by
each and every man, woman and
child, according to his own abilities;
/ not alone q contribution of food to
our Allies. but q contribution to lower
prices. 1t is obvious that our people
must have quantities of food and
must have them at prices which they
can pay from their wage. II we are
to have ascending prices we must
have ascending wages. But as the
wage level rises with inequality, it is
the door leading to strikes, disorder.
to riots and defeat OF our national
efficiency. We are thus between two
fires-to control prices or to readjust
| the income of the whole community.
The verdict of the whole of the
worlds experience is in favor Of price
control as the lesser evil.
There are few who win dispute the
advantage OF such regulation as will
eliminate speculation and eXtortion-
ate profits. This is, difficult to dis
sociate from fixingNof prices, yet a
good deal may be done by simple
! regulation and the organization of
trades to police themselves under
government patronage-to put regu-
lations into force as win protect the
/ legitimate and patriotic trader-for
no one win deny that speculation
against the consumer is a vicious
crime in our present state,
Control Of Prices.
| The large question of the hour is
price fixing, for the suspension of
the law Of demand and supply as an
| equitable, economic law, is Forcing
our hand in every direction.
The total experience OF Europe has
demonstrated that many methods Of
price control, such as maximums
and minimums, are q fallacy, and in
| themselves stimulate evasions and
generally, economic currents, which
while they may be temporary pail
liative to the situation, ultimately.
wash away the very foundations Of
production and distribution. OF
European experience in price fixing
practically but one formula has re-
/ mo inc ferff =
fed price for every stage of a given
commodity from its raw to its finish
ed delivered state. based as nearly as
may be on the cost of production and
reasonable return on capital
/ We shall find as we go on with the
war and its increasing economic dis
ruption, that first one commodity
after another will need to be taken
into control. We will, however,
profit by experience If we lay down
no hard and fast rules, but IL we
deal with every situation on its
merits. So long as demand and sup
ply have free play in a commodity,
we had best leave 1t alone. Our re-.
pairs to the break in economic con-
troll in other commodities must he
designed to repair the break-not
with view to setting up new econ
omic systems or theories. 1t appears
/ to me that we can divide our COM
modities roughly into four classes.
Four Glasses Of Goods.
First, those commodities of which
we produce our own supply and for
which there is no export or import
business of such consequence as to
influence the whole. such as corn,
potatoes, onions, apples and many
others. Here the law OF demand and
supply still reigns. and we can well
leave them alone, provided no per-
son or persons attempts to upset the
i normal flow of barter and then we.
can best deal with the person.
Second, those commodities, the
export demand for which dominates
| the price. Here 1t is possible as a
first step to regulate the export
I price. In such class / may mention
wheat and flour. Nor have we much
choice as to the matter of these COM
modities, for under the agreement
between our government and the
allies our government must pur-
chase or direct the purchase OF allied
supplies in this country and as these
| purchases in many commodities DOM