The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1917-07-26
Price Fixing by Government; Complica-
tons Congress and Cabinet Fail to Grasp
Engineering and Mining JournaD

Engineering ant
The controversy over the prices for
commodities that has been going on
in Washington ever since the United
States entered the war Is crystallizing
Already a split in the cabinet Is
threatened and inevitably there will
be the appeal to Caesar that a fort
night ago we forecasted. In the OPP
inion of many officials the question
may involve sthe entire makeup of the
council of national defence and its
subordinate civilian committees OF
business men.
One element, said to include most OF
the membership Of the defence. coun-
ellis committees, is for purchasing
policy that will allow liberal profits
to producers to stimulate production
These officials declare the Government
will obtain far better service If the
government does not try to drive its
bargains to hard. This is the view OF
the business men and of the econo-
mists, and apparently Is supported by
Secretary Lane, the strong man of the
cabinet.
Other officials, led by Secretaries
Daniels and Baker, believe the gov
eminent should bring every pressure
to bear to obtain the lowest possible
prices, and some, its is said, are for
communicating supplies. This Is the
view Of the inexperienced theorists
the politicians catering to populistic
and socialistic dreamers, who see in
every business man the physiognomy
OF the plunderer and crook.
. There is a third and even more al
arming view, more alarming owing to
its nonsensical vagary. The federal
trade commission, which is investigat-
ing production and manufacturing
costs on basic materials, takes the
position that any prices agreed be-
tween the government and producers
or fixed under power to commanders
should go to the general public as well,
II the government goes into the mar
ket for large purchases at low prices,
II Is pointed out. the private consum-
er will be forced to pay even higher
prices than he now pays because pro-
ducers under no sort of restraint will
raise their prices to him to make up
for their loss in selling to the govern
ment Some members of the commits
sion are for legislation to meet the
difficulty.
The federal trade commission is
correct in its view that II the govern
ment exacts low prices for itself the
private consumer will have to pay
even higher prices. That is certain.
Already it has happened However,
II will not be by producers raising
their prices, but by consumers bidding
for the curtailed supplies.
But If the views of the federal trade
commission should prevail, IL the gov
eminent should fix low prices for
everybody, who is going to attend to
the distribution? If, for example, the
government has fixed the price for
aluminium at 25 cents per pound, IL
consumers would like to buy twenty
million pounds per month at that
price but the supply is only ten million,
what authority is going to say who
shall have it and who shall not?
Suppose the government itself need
ed ten million pounds of commodity,
had fixed price for it at cost plus
10 per cent, and the total supply was
but half the amount required? Who 10
going to furnish the capital to build
the plants to produce what Is needed?
These questions are not stretching
IF the imagination. Great Britain
lad to answer them and catalogues Of
heir principles are running through
Ill business today.
II business organization We're so
simple as Mr. Daniels and Mr.. Baker
believe, innocently but ignorantly. we
night defer to their vanity, or sharp |
Practice, and sell them commodities at |
ess than the market price, making
t up from other customers, just as
he greengrocer compensates for his
'ad accounts The paying customers
would suffer, but the natural law
you'd compel them to pay the penalty
Or bad business methods, If big bus
ness were so simple as this, we say,
roducers could afford to be Indifferent
0 what Mr., Daniels and Mr.. Baker
'ant to do. But unfortunately it is
OF so simple, and the disturbance that II
created plays the mischief to every II
ody. In
Consider for example, recent Nv
transaction in copper. The govern c
nent bought so.oOOooo pounds at rs In
ents' the market price at that time Il
'eing about 80 cents. The chairman Ia