The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1917-08-18
FIXINGOF
PRICES IS
UNLIKELY
Especial to The Times)

Especial to The Times)
WASHINGTON, ID. c., Aug. IS.
Direct price fixing will play
little part in the Hoover food
control.
The reason can be summed up
in one word-Australia!
Australia, during the war, has
tried out every possible system
OF artificial price regulation and
fixing, thus giving the world its
first authentic information.
The results show price fix
ing by legislative enactment
or administrative boards does
not reduce living cost except
/. in special circumstances.
Where both supply and demand
are ample and elastic" price fix
ing has produced positive harm.
Where there have been tenn
porary shortages or monopoly
control, price fixing has succeed
ed.
The Australian experience is es-
pecially valuable to America. The
social and political habits are sim
iliar.
Like America, Australia is far
from the firing line. Australia
has a dual state and federal gov
eminent, and the problem of in
terstate commerce.
The Australian states began to
regulate prices at the outbreak of
the war, each In its own way.
New South Wales adopted thoro-
going price fixing and stuck to it.
attempt and became disguised
Tasmania let nature take her
course.
At the end of three years the
results in all are the same. THE
COST OF LIVING HAS RISEN
IN ALL AT ABOUT THE SAME
RATE.
And now the states have passed
the buck and the federal govern
ment has assumed control of food
prices and distribution.
Food regulation in Australia
will likely parallel the United
States course, except that it will
be more far reaching, as the Aus
ment ownership of all public util-
tralian governments have govern
tiles and many Industries.
A summary of the Australian
experience has recently been pub
lished in Melbourne by II. l.. Will
kinson, distinguished economist,
member of the Victoria price fix
ing board.
His conclusions will not be
welcomed either by reaction
aries or by enthusiastic be-
levers in state regulation.
They show:
% Artificial price fixing is
powerless against the law of sup
ply and demand" where that law
is REALLY OPERATING.
CD But price fixing by govern
ment authority proved a SURE
PREVENTIVE of gouging by
spectators.
CD Price fixing lowered the
cost of commodities controlled by
trusts.
"a Germany and Australia
have both proved it useless to fix
selling prices where there is an
actual shortage, UNLESS THE
GOVERNMENT Provides BY A
CAR SYSTEM FOR EQUAL DIS
TRIBUTION.
CD Where selling prices are
fixed below foreign prices the gov
eminent must purchase and i'm
port, as private capital leaves the
field.
(6) Unless the government
stimulates production by mini
mum prices or state purchase, the
result of maximum selling prices
is an intensified shortage after the
next producing season.
(7) Where stocks are held
by a trust or a few large hold
ers, simple selling price fixa-
ton may be effective. But
where held by a great many
such as farmers-the govern
ment must buy the crop and
sell at fixed prices. Other
wise the crop will not come on
the market at all, and ami
mails will eat the grain.
(S) Price fixing, where both
supply and demand are ample and
elastic" is worse than useless as
II discourages production and
stimulates monopoly. In such
cases the fixed maximum price"
soon becomes the fixed minimum
price"
Control of middlemen thru
license power and the reduction OF
distribution charges Is the princi-
pal agency by which Hoover pro-
poses to eliminate monopoly costs.
Tho AuofraIian aynarienca ahOws