New Iberia enterprise and independent observer. (New Iberia, La.) 1902-1944, 1917-04-21
WORTHY OF NOTE.

In its issue of April IA the FL
nancial World says: A break
all along the line in the prices of
supplies which the Entente Allies
have been buying in this country
IS Hresaged by the developments
at Washington, where the Coun
ell of National Defense has been
at work bringing the great IN
dustries to the point Of agreement
to furnish our new allies with raw
products and finished goods at
the rates which this government
is prescribing for its own needs.
The reason. for the change is that
the United States, being commit
ted to the policy Of selling It's
bonds to help the Allies in their
American purchases, does not
want to see its money paid out
for supplies at inflated prices. 1t
is, therefore, going to use its pow
er to cut prices somewhere near
the ten-year average, which IS,
of course. far below the present
level. The Allies last year
bought 44S, 100000 pounds OF
Hopper, at an average OF 70 cents.
R-nder the rule fixed by the Coun-
eli IF National Defense the army
anH navy of the United States will
hu-k copper at 16 IA and that will
probably be the new basis for pur-
chases by the Allies, whose con-
tract will run out in the near fu-
\ ture. In the case of steel the
yforeign governments took about a
{ORarter of the American produc-
ffN, and their buying, together
WIN domestic orders, sent the
pricA to cents per pound. The
United States governments price
for steel is a little less than three
cents. and this will probably be
the average of the Allies. Con-
tracts for all other supplies
shells. powder. leather, horses,
guns, etc.-will have to be made
along similar lines. "
Needless to say, the change will
radically shrink the bottles OF
the various "war babies y For
If must be remembered that ex-
orbitant prices paid by foreign
governments bleed the American
. public as well. This strenuous
competition will be absent hence
forth if the Council of National
Defense has its way. But share
holders in war-fattened concerns
NAV console themselves with the
thought that the excess profits
tax will shrink as the Council
,of National Defense applies the
knfe. And though the consola-
tiSh is likely to prove a poor one
at best, it will be infinitely better
than none at ALL The lslmple
truth is that no concern can DOS
siblv know where it will stand
..<mler the new order of things.
business, as in politics, we are
about to sail an uncharted sea.
Precedents are valueless, as hav-
ING been established when moth
ing except human nature was the
same. Some spectators have
lost tons of money by STUDYING
statistics; other spectators have
made tons by forgetting the his
toric figures.
The econmists tell us that all
values are relative: cotton may
be dear at 10 cents when condl-
tons are perfectly normal, and
vet be cheap at 90 with the con-
ditions reversed. So, too, prices
may be shaped by many ntiuen-
ces besides supply and demand,
as commonly understood. For |
s.example. this government may,
Ny resolute exercise of its war
Rnaking power, prevent the Allies
from being ieeced, and thus
temper the wind to the shorn
lamb in this country. It is be-
cause of these and kindred facts,
clearly or dimlv discerned, that
the professionals have Wall
Street pretty much to themselves.
The outsiders, quite aware of
their ignorance. are content to
look on while Father Time solves
the problems he poses It. T.