davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-02

may yet come than reality Of what
has indeed come. There is truth as
well as myth in the story Of the fine
bird that sprang out Of FIRE. War IL
fte raised to the nth degree. 1t
burns away both harmful buildings
and also imprisoning ideas and dam
aging habits.
Comfortable as are the homes OF
most Americans, with their carpets
and pianos and other items Of un-
commercial wealth. and despite our
million pleasure automobiles we
have the highest rating among all
nations in ratio Of working capital
tc our total wealth; we have the most
persons in per cent Of toilers at prof
table work, and we have by far the
greatest power TO sustain war and 70
recover in peace. It is for this rea-
son that we have taken the world
upon our shoulders TO feed and to
save. The former purpose OF our
undertaking, which is the most gl-
eantic of all national undertakings
since history began, is nine-tenths
commercial, one-tenth charitable, but
the latter, perhaps, is half selfishly
rational and half purely humanl-
tartan. We are doing more than try
ing to make the world safe for de-
mccracy. fine as the truth in this
clear phrase is; we are trying to de-
mocratize the world.
A Lesson
For the World
Teaching other peoples that ma
ton is great not when it has su-
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-02
Business Wanes
As Prices | all

The entire problem Of bushes; 40
.lvity hangs largely on the perma'
hence Of that basis. The story q
the past Is that the first declns
after a long era Of advancing prizes
invariably means a lessening OF bus.
ress activities, for the very simpf
reason that no one ever buys freey
on a declining market, but conhnsi
his purchases largely TO immediate
wants. Moreover, IN such a cond'
ton the element Of speculative buy
ing is entirely absent.
We are confronted, however, VIZ
row and uncharted conditions, wnle
may entirely upset all past trac
tons. There are enormous and W.
trecedanted crops, az unusually hls'
prices, which invariably mean pros
perity in all agricultural sections
All forms Of industry and OF trans
portation are swanpei with olS'
ress. Labor Is generally employee
as never before in our history. GoN
eminent and foreign demands an
10th insistent and IN tremendo'
-
volume, and threaten TO create scar
city in many lines, which may Prov
a strong sustaining force IN MAE
tsinlng prices at an even level
1t is possible that lower prices d
some materials may renew actiWN
in building and construction woIA
and in development enterprise
though the experience Of the pas
does not indicate such re'ul'
There is practically no speculatO'
row in general business. The hnan
clal situation does not offer an
cause for apprehension. despF'
somewhat prevalent fears as TO u
flation. So that a survey OF niu'
mixed and complex situation seem
to forecast a general continuance o
present business activities, thoug'
probably on a somewhat dlferen'
and less strenuous basis.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-02
When Sellers
Control Markets

In the DAYS of yore, when the
Sherman law seemed sleeping. this
procedure was vehemently ascribed
70 unholy and unlawful comb!na-
tions. In these times, when trad
understanding are difficult and dan
gerous undertakings, the same ef-
fects are produced by apparently diff
ferent causes. Nor is the reason far
to seek An unreasoning and IN
satiable demand in boom times not
only accepts advances without pro
test, provided it gets service. but
often bids mp prices against itself.
It has not been an uncommon expert.
ence IN the last three years for buy
ers to offer premiums for prompt de
liverleS if manufacturer will give
them preference over older orders on
their books at lower figures.
It is curious and significant fact
that in times when combinations in
restraint of trade are barred both by
law and public opinion the prlce7
Of staple commodities are much
the same by all producers. There
is a general coincidence in this re
spect which may be ascribed either
t. merta teiepathy or else keen OBJ
servatior anc knowledge of the gen
era! situation This condition In all
its phases is largely applicable to
the products OF manufacturing. min.
ing lumber fishing and the ike.
For agriculture it is another story
The farmer is the only producer who
has nothing whatever TO say as to
the prices he receives for his prod.
ucts. Nor do his selling prices bear
any relation to the cost of produc-
ton. They are determined by com
petition and the facilities for mar.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-02
By WILLIAM F. CHANCELLOR
Head Of the Department Of Economics
Politics and Sociology, Col
lege Of Wooster

lege Of Wooster
TT Is commonly said that the
/ wealth of a nation consists of
n the total wealth of all its citi-
zens plus the wealth owned by the
government for the people. 1t is the
sum of all private and public wealth.
Scientifically considered, however,
wealth includes all and only the pos
sessions for which there are mar
kets-all the things that are difficult
to get, limited in amount, trans
ferrable in realty and by title, and
sufficiently desired to be priced in
the terms of other things, usually
money. Right here, where we begin
10 consider the statistics of national
wealth. we find ourselves in difficulty
because much public wealth is dis
tinctly not marketable, and there
fore fails to display the several es-
sential characteristics Of true wealth.
In 1918 the wealth of the United
States was estimated by various
more or less competent authori-
ties and economists at from $780,
600 OOO,O to 225,OO0,O0O, 900
amounts 50 stupendous that most
persons simply declined to think
about them. Very. very few persons
have ever attempted to analyze the
component elements supposed to
make up the vast total. Neverthe-
less. we have entered upon world
war in the belief that the nation Is
worth now something above $780,
100000, which belief is based IN
the minds of more than a hundred
million persons or their guardians
upon nothing more than the compu-
tations Of a mere dozen, or perhaps
score, of persons with no directly re-
yiewable official responsibility to the
general public for the correctness Of
their estimates.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-02
Unreasoning Demand Disregards Prices
Producers Rely Swollen Profits to Bridge Them Over the
Hard Times That Usually Follow Boom Periods

at one end Of the spectrum and tha
# the Wabash Railroad az the otsg
As in each case it is a conditc
and not a theory which has TO y
met. the only feasible and practics5'
answer seems to be the costs Of tn
average manufacturer and The gs,
eral status Of the average rallroa:
IN this matter, however, 1t IS not g
much The actual price to the govern
ment which results as the indIrs
effect upon the general body G.
prices. 1t is very sure that the price
to the government will in any cas-
y, below those market quotatlo-
prevailing to-day. In the days
Prosperity. as | have said befoH
the selling prices Of al products II
determined rather by their marz
ing capacity than by any fixed =
lation to costs. It has been perfec
" obvious for some time that the e'
Of high prices vas being gradual
limited by their own excuses
some lines, and that the coming
peace was sure to bring their fn'
downfall. What now may ensue
: possibility IN many branches Of II
dustry is a readiustment on a som'
what lower basis.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-02
Rv ARCHER WALL DOUGLAS

TN THE ready acceptance by the
business world of the principle
II of governmental price reguia-
ticn the whirligig of time has brought
about an economic revolution that
seemed impossible decade ago.
The real problem now is as TO how
far this principle will be carried ana
the extent to which it will be applied.
Obviously, definite pronouncement
and prophecy on this score are largely
futile, seeing that we face conditions
without analogy or precedent in our
experience. Nevertheless it merits
intelligent analysis as to its llkell-
hoods ard possibilities.
The situation is a very old one
and in the past followed very def
mite and set method. All producers
of simple. elemental commodities find
that in the main the conditions OF
their business approximate those
either of a feast or famine, this
likewise from causes apparently
beyond their control. The story is
lust : true of the farmer who raises
only cotton or apples as the manu-
facturer who makes pig iron or steel
billets. The story IS not so true
however, Of those who raise diversi-
fed crops, or manufacture varied
lines of finished materials. In these
latter cases the wide fluctuations of
supply and demand, and consequent
" of prices, do not affect all their
products equally, so the varying
fortunes and profits of the different
components tend to balance each
other and thus create a more stable
and uniform whole. So in the staple
commodities the producer worked the
only solution that seemed possible
under the circumstances; namely
that the profits Of fat years must
recompense him for the losses OF
lean seasons. What he could get for
his goods was limited principally by
competition. which loses its keen
edge in time of much demand, and
the extent 10 which he could raise
his prices without curtailing demand
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-02
\ Prevalent
DelusIon

The theory is that the government
price is to be determined on the pres
cnt basis Of cost. Unfortunately, the
law making elements, as represented
IN Congress, being largely both theo-
Ieical and inexperienced in business
affairs, are never free of the
Celusion that there Is such a thing as
a general and stable average cost for
production on any one article Of
manufacture. 1t is much the same
q ffculty which the Interstate Com
mcrce Commission experiences in tho
plea Of the railroads for the neces-
S'ty of higher rates, for they en-
counter the condition and earning ca
pacity al the LshiSh Valley Railroad
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-02
Worthless Estimates
Confuse the Ignorant

Members of Congress, pubhclsts,
Platform men and nearly all others
who write or speak upon the costs of
the war and the progress of the
world famine, or its present appar-
ent retrogression, declare the totals
in money terms, and argue accord
ingly with all the familiar confidence
of the ignorant, who take their
opinions valiantly from the too often
self-assumed wisdom OF Few. 1t is
true that we have from time TO time
reports from the Bureau of the Cen
sus of the national government, and
that several state bureaus have un-
dertahen TO express opinions, but i
lave yet to discover an American
document that will bear either
mathematical or economic criticism.
Nor is this an CndeavOr to supply
the missing scientific discussion. For
one. | do not believe that it is highly
profitable to know. even if one could
know. what the nation is worth IN
total wealth; our country is not for
sale. nor. i'm whole or in part, Is 1t
now offered for pledge to any other
power. What we need TO know IS
something different from our total
wealth.
1t may he objected that the total
wealth of the nation is up for pledge
90 government bond holders. and that
we ought to know what we are worth
all together, in the terms of money.
Though in a moral sense we are
mortgaging our wealth to bondhold-
ors, we are not doing so legally; we
are not pledging customs receipts or
income taxes, but only our good
faith. These Liberty bonds are
legally but promissory notes, and
their makers and takers are all the
more honorable because there is no
specific mortgage behind the notes.
These obligations of ours have the
immense weight of debts Of honor.
What is, then. the true centre OF
interest. now that we are in a war
that is TO cost perhaps Sl5,OOO0o0,-
600, or even $2O,OOO,OOO,OOO, a year?
Its centre is where any European
statistician or economist could have
told us twenty-five years ago, this
centre Is IN our productive wealth. IN
cur capital. IN our Immediately
available business resources.
Socialist and other reasonerS who
follow false premises 10 logical and
niausibla canelusions NAV kSsert with
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-02
OF What Our
Income Consists

.
The total income Of a people con-
sists of all the currently produced
wealth for consumptive or productive
purposes; that is, for immediate use
or for investment. The endeavor to
discover what this total is has not
been successful even in the countries
that have longest maintained private
income taxes. The old conundrum
persists: How shall the services of a
wife be computed? The question is
typical Of all the others.
Men say that the income of the
United States in 1918 was some
where between S90,000,000,000, and
perhaps even so much as $60,000,-
100000. but they do not agree as to
what items shall be included. Be
cause of the falling purchase power
of money there is a fairly general
agreement that the annual income of
the American people for the fiscal
YEAR that ended June so, 1917, was
at least s45.0O0,0O0,000, in money
terms. 1t is evident that when the
medium of exchange fuctuates wide
ly in value, in the terms of goods and
Of other possessions, no figures are
wholly trustworthy and substantial.
There is another cause for paying
but little attention now to the ques-
ton as to the total annual income Of
our people. Our population has been
growing at the rate of about , per
cent per annum. But we are pledglng
our national future irrespective Of
what the population is or may be-
come, for we are pledging the people
themselves, ourselves. We do not
care now whether the total income
grows pro rata with the population
or not: what we care about is that
we, that is, the survivors, shall be
free to govern our lands and coasts
and commerce according to our own
self-determined and now ancient
ways, and not according to the re-
vived semi-barbarous ways of Mid
die Europe. And we know that,
though in the easy days of peace we
produced perhaps forty billions of
wealth year. in the more laborious
days of this war we can produce in
days products, whether salable or
not, vastly more. Wars are won by
the workers behind the men on the
firing lines.
The assertion that the true eco
nomic criterion of a nation is the
total Of its labor raises at once the
question as TO how we shall figure
the labor Of the soldiers and sailors
of our war forces. The problem IS
much like that of estimating the In
come of the people; that is, the
amount actually realized by all of
us for our paid services and salable
products.
A country woman makes jam and
gives six jars to a neighbor. This IS
neither economic labor nor economic
income, but it does add to the con
sumable wealth of the people.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-02

enthusiasm that the true centre Of
public economic concern is in our an
nual total income, or, perhaps, in our
labor. And it may he well to eX-
anime these two other views before
proceeding with the main PROPOSE
ton, that, in respect to our ability to
pay the costs of war. the centre of
the interest of the statesman, as well
as of every intelligent citizen in pri-
vate life. lies in our productive
wealth.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-02

keting. No cooperation among farm
ers as to maintenance Of prices can
be effective. save locally and partial
". unless It be nationwide. his
competition is worldwide as wei! as
nationwide.
The wild fluctuations in grain and
much of the high level Of prices were
due therefore to the manipulations OF
the gamblers on the grain exchange
The distributor. whether wholesale
or retail. is largely the creature OF
circumstances in this problem, since
of necessity he must advance his
prices as he pays the producer more
for his goods. He is likely to do so,
when he can, as the only safe and
sound business policy and without un-
due regard as TO such stock OF goods
as he may have bought at lower fig
ures. For he sees, from past eN.
perience. stretching out before nm. a
long vista of years of declining prices
.hich are as ten, and even more, 10
one of rising costs. During all this
time he knows he will suffer steady
and unavoidable losses by deprecia-
ton in value of merchandise in store,
and when he shall also have to make
constantly lower selling prices with
out regard likewise as to much
higher priced stocks of merchan-
disc still in his possession.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-02

pressure Of harvest Yields upon the
spot market.
Problems of
The Manufacturer
Contrast this with the position Of
the manufacturer and the jobber,
with large stocks Of good on hand.
bought at high prices, and which
they must continue 20 carry in order
20 do business. They know full wei
from the story Of the past that in
evitablv. sooner or later. they must
face a long period Of feclining prices
with consequent heavy losses. 1t Is
out of the question for the govern
mont to guarantee them minimum
prices on their products, either now
CT in the future, for it already has
. mans Job on its hands in the mat
ter of food control and one which
demands its utmost skill and in
cenuity to compass successfully.
Is not. therefore, the business
world entitled to the broad consider
alton shown the farming commu-
pity? There was never time IN
cur history when the government re-
ceived such loyal and unhesitatine
support and cooperation from all
. classes in commercial life. They are
bearing more than their share Of
wars burdens and giving more than
their share Of personal service. II IS
i7tolerable under present conditions
that speculation and manipulation
for personal gain should continue
m any Of the necessaries Of life, bur
repr.sals in any for past offences
should he personal and not directed
against the industry itself
T. must be apparent that the pres
ent great government financial plans
depend for their success upon the
general continuance Of business un-
der profitable conditions.
There Is another phase of the
pr.ce regulating question which Is
even more complex IN the nature and
more farreaching in its results. It
appears to he the purpose Of the
government TO demand for the Allies
enc for the domestic buyer the same
prices which the government We
ceives on ITS own purchases. The
immediate effect Of this pronounce
ment was the practical cessation Of
buying for domestic consumption IN
IN definite settlement If the mat
tar is reached. Meanwhile, the
pr'ces of some leading metals have
rccedad. It is perfectly obvious, TO
all save the wllfully blind, that if
he government contention prevails
in all its purchases there must
ensue a farreaching adjustment Of
he present economic situation.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-02

producer is comparatively simple as
compared with that Of the manu-
facturer and the mine owner. All
that was necessary to prevent high
prices by INSCRIPTIONS grain gam
blers was to prohibit trading in
futures. That alone, however, held
ous little likelihood of materially
lower figures because of the coming
pressure Of harvest Yields upon the
spot market.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-02

in liberty under mild laws. No man
has yet estimated the economic en-
franchisement Of the Russians IN
money terms since the new and char
acteristically lurid dawn Of liberty,
but if the Hohenzolerns do not sue
coed the Rumanoffs but democracy
endures there, we shall see such a
new Russia, so. enriched by freedom,
as will make the old estimate Of S45,-
100000 Of wealth seem poverty
indeed before ten years are passed.
Those who know say that Cuba has
already trebled the wealth Of the old
Spanish days. German economic en-
terprise, though worldwide, had no
such inner drive as British or Ameri'
can enterprise.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-02
Toiling in
The Yoke Of War

Nor is it fair to estimate the capt.
tai of these nations while the war
lasts. In them labor has learned 70
toll as men have not toiled hitherto
for a century or more; and 1t is an
intelligent and purposeful toll, even
in Germany, a toll that will mean
skill and endurance when at last
peace comes. While our own soldiers
drill and fight most Of us will toll
more than ever before. We also will
soon emerge TO national and indl-
vidual wealth far peyond anything
that we knew before the war;
In the notion that Europe has al
ready been economically ruined be
yond repair for a generation or
century there is more fear of what
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-02
Profits Not
Excessive

Whether this general method re-
suits in producers obtaining higher
returns in their business than they
gre really entitled to Is impossible
to say in the absence of definite
statistics. From such observations
as are possible it seems likely that
a comparatively small percentage Of
them do. but that most of them do
not, and in fact the principal result
is 10 bridge most OF them over the
lard times that usually succeed
these boom periods. Il must he re-
membered that the policy is a gem
eral one, and there are rarely op-
portunities for the display Of any
individual profitable action, save in
the way Of "nlunging' by those who
discount the future, either by un-
usual prescience and foresight or
else merely the possession of the
sporting instinct.
The story Of prices for the last
three years has not been different in
general characteristics from similar
periods Of the past save for vehe
mence and sustained force. It's end
would in all likelihood have followed
the fate Of bygone booms but for
two new factors, a dominant public
opinion and government regulation.
The high cost Of living IS bitter
and unpalatable fact 70 most people
in the nation, and consequently rls.
ing prices. which seem without llml.,
came home 10 most householders.
This led easily to the feeling, en-
trely warranted, that speculatine in
rood products under such conditions
was little short of criminal. TT,
only recourse and preventive was
strong government control, appar-
entity called for by the eyigencieS of
the situation. II Is this general
feeling that is the real source OF the
present food control law.
Naturally, this lea to the further
consideration OF effective control OF
prices OF all the necessities Of life"
This feeling is apparently in no
mood to consider the somewhat OBJ
yious proposition a. to how the ne
cessitles Of life shall be defined as
ether than a somewhat casuistlc
end academic discussion under pres
Ont emergency. II Is very apparent
that the definition will he made along
the lines of necessity rather than
tnose Of logic.
The problem Of the farmer a. .
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-02

5 Total .ias.e5o, 900, 900 Si2e.425 .ooo. 900
ian these estimate, are for the proper
tic, located within each state The total
privat. property Of the citizens Of Nssss~
chusetts wherever locates T. usually estl-
nsted at about Sl.Oo0.oct. 600 For
such urdevelopeo ststes a. Ne" Mexico
an estimate, q wealth are inevitably col.
ored by vision, Of rsturai resources "soor
20 be developed The current estimst,
Of the private capital OF n. Cana Zone
IL coiorec ~ N. presence Of the immense
public capital ";ryested' $50 20 say in
the canal 4 TIE CITY Of Washington IS
generously estimated perahps oyer-esti-
, mated IN m. figures for re business CAPT.
tal given here 4 % per cent increase
~ thee totals for Onset against the fallen
purchase power - money raises them, r..
spect'yely. 70 shou, $3.50 600 600 600 and
sl5s 900 .000. 900 for the end Of the fiscal
yer isis.if.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-02

The three monarchies had about
s215, GOO, 900 900 of wealth and $685.
600, 100000 of income, while the two
republics had S25O,O0O,0O0,000 Of
wealth and 500, O00,OO0,000 Of in
come. The first group had about 1885,
O00, 900 people, while the latter group
had only 100000 people. 1t would
not be fair to assume that they had
each and all the same proportion Of
working capital to their total wealth.
II is characteristic of free peoples to
have a far larger percentage OF
working capital than have peoples
under autocratic domination. Capt.
tai does not thrive under strong CEN
trail government such as that still
burdening the Germans, but rather