New-York tribune., 1917-07-11

'1hHu lNe eHeCL OF nlgn prIces fOr on
commodity is high prices in others
with and without excuse, high prices
are contagious.
Time Not Entirely Wasted
Fortunately the present period Of de-
lay and confusion. which has made peo-
pie impatient who desire 20 get things
done, has not been entirely wasted
The Administration mas had steadily
enlargng conception Of what IL is
necessary to do to control prices.
Let me illustrate. In the beginning
estimates were made by the War and
Navy departments of their require
ments for copper, aluminium. nickel and
othcr metals.
On the strength Of these estimates
Mr. Baruch. who had no authority to
fix prices. went out and negotiated ar
rangements, subsequently approved.
for limited quantity of these com
modities at very low prices. He APP
pcaled successfully TO the patriotism Of
certain large producers. That was the
early price fixing policy. 1t covered
small quantity and related 10 only
few producers. IL soon became APP
parent this was inadequate The de-
partments in their ignorance had
grossly underestimated their require
ments. Moreover. the needs OF the Al
lies. buying by means Of our credit, had
been overlooked.
The next price-fXing policy covered
large quantities 10 be bought from the
whole body Of producers. Here DIM
culties arose. The government had to
take into consideration producers turn
ing out products under disadvantage
Gus conditions. whose costs or produc-
ton were hign. The prices asked were
so much higher than those obtained
BIZ Mr. Baruch for the small quantities
M first demanded that great differ
erces Of opinion arose. These dIher-
ences were not settled before the gov
crnment began 70 perceive that no
price-fxing policy would be complete
which merely Tade the government
favored purchaser and left the puollc
10 suffer from the consequences OF the
nations absorption o. large snare OF
the commodity whose price Tor puoIIc
uses was hXed.
New Policy Covers Industry
Thus il is now seen that price fxlnS
must cover whole Industries and their
rntire product. whether IL goes TO the
Government. TO the Allies or 10 the
oublic This is the third and present
price-fxing policy. Its evolution mas
been the gain from weeks OF apparent
indecision and inaction.
Lot us look a little further along
this road on which the nation mas SET
ont bv the very act OF entering into
ms war. The people who are trying
IN think out this big price problem so
~
resuit OF the governments paying eX-
cassive prices or as result OF the gov
ernment's forcing up prices TO the pup
lie bv preempting a large share Of the
nrodiIce of industry, even though it
'tseIf secures a reasonable price. are
looking beyond that point. For II VIII
nor be enough that prices snail be
6xed 20 the public. II what IS lett
of a commodity after the government
and its allies have supplied their wants
il not enough 20 satisfy private re-
ouirements. some one Will have 20 say
whose orders shall be filled and whose
not. OF. at any rate. whose orders
shall be filed first.
We have already provided Dy legls-
lation for authority 20 say whicn snip,
rents shall 90 tirst on railroads, ana
.bs hoard which may determine such
questions of priority has power as be-
tween private shipments, as well as
between government shipments ana
private shipments.
Tho same idea will have 70 be ex-
,ondsd 20 industry. at least 20 such
narts Of IL as will be disturbed by
war. Thus in the price fxing policy
which il being slowly evolved mere
neither prices. in certain commodities'
nor distribution is 10 be left 20 the
fros oneration Of those factors which
normally determine prices and disir'-
hutton. The government in order 10
nrevent chaos will have TO step IN
and control both. ,,. ,