Daily capital journal. (Salem, Oregon) 1903-1919, 1917-08-23

movement was futile because, as ex-
pected, it contained nothing that ser
iously interested the allies. 1t, however
served the useful purpose of clarifying
| and emphasizing the allies intentions
Their terms are now more definitely and
more firmly established, and the basis
! CT further popular discussion has been
clearly outlined. The Central power go7-
ernments must know, if their people do
rot, the main conditions to which they
must eventually submit. The sooner they
abandon the present policy of self -des-
/ truetion, the better for themselves and
the world at large. TlA allies are united
in insisting upon peace that means
the triumph Of democracy over autoc-
racy. At present peace appears impos-
sible because Germany is not ready to
accept the allies terms, and evidently
will not, until compelled either by an
allied victory or change of heart in
The German leaders; the latter being
much the more desirable basis of adj
justment for all concerned, Germany
included.
Federal Control Disturbes.
The wide application Of government
control over business, which is now be-
ing so sweepingly put into operation
since passage of the food control law,
is necessarily having a somewhat un-
settling effect. This, however, will only
be temporary, and within few weeks
public adjustment to the new regula-
tions will be practically complete The
food supplies of the United States are
now practically under the regulation
of one man, Mr.. Hoover, who has been
clothed with absolute powers. The pol
icy Of the government in regard to price
fixing will undoubtedly be a conser-
vatiye one, for the reason that the
risks Of the situation are understood.
and that it would be unwise to inter
fere with business to an extent that
would impair tax-paying abilities Ex-
traordinary conditions usually require
extraordinary means of handling. War
had so completely deranged the ordin-
ary means of production and distribu-
ton that the natural play of supply
and demand became impossible. Com
modify prices have been soaring and
soaring until the food problem became
acutely grave; and it was evident that,
unless some effectual step was taken
to check the rise in food and other
necessaries of life through unscrupu-
lous speculation and manipulation, ser
ious public and political arrangement
would follow. Profiteering developed
into menace that must be overcome,
and the only practical cure was govern.
ment control while war continues. Wheh'
The war is ended, ordinary influences
of supply and demand may be allowed
to reassert themselves; though it is by
no means certain that all of the new
activities assumed on ac-
count of the war will be abandoned. On
the contrary, not a few of them will be
retained, and although this country IS
NOT prepared to take on the socialistic
system. still one of the legacies of the
war will undoubtedly be a much closer
regulation of business by government
than was possible before. How far the
will invade the field OF
ownership remains to be seen. In TINS
direction the movement will be more
cautious, and such experiments promise
to he confined at first to public utll-
ities. such as electricity, gas, trolleys
and other public service institutions.
Food Situation Serious.
The world s food situation is more
serious than generally appreciated. Des-
truction Of life, of wealth and of com,
modities in Europe has lessened food
in various parts OF the
world: while the difficulties of trans
portation aggravated the serious short,
age in nearly all lines of animal ana
foods. High prices resulted
Many articles of food nave
doubled in value since the war and hlgh
food prices seem likely to contribute
for some time to come, even after the
war. simply because labor will be scarce
wages high, capital dearer and trans
oortation expensive. The results of gov
,rnment control of prices will probably
oe seen chiefly in preventing too mark
"a a rise or too much speculation or
profiteering, which in
-hese times would be crime. No great
iecline in values can be expected
through government or any other
agency. The scarcity of products is
and all the governments in
he world cannot prevent the natural
consequences of such a situa-
lion. The only way of bringing prices
lown is to economize, to avoid waste
md to increase the product in every
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