Evening journal., 1918-11-12
HOOVER SEES SLOW
CUT IN FOOD PRICES
Revision Will Take Time,
Says Administrator in
Statement
EXPLAINS SOME
OF THE INCREASES

WASHINGTON, Nov. ~. - Although
Herbert Hoover. Federal food admins
traitor, expects food prices In the United
States to undergo appreciable changes
as the result Of the effectual end OF the
war, he does not anticipate immediate
fluctuations or speculatiOns.
A decline in the prices Of many com
modlties may be looked for, the food
administrator believes, but this VIII not
d come quickly and will be accomplished
largely by a decrease in the price now
paid the farmer for his products.
In a statement issued today summar-
izing the fluctuations Of food prices
during the last year, Mr.. Hoover eX-
plains that the increase In the price OF
food has gone largely to the producer.
Government regulation of the middle
man, through the Food Administration,
the statement shows, has tended
throughout TO reduce the margins OF
profit between the producers. Mr..
HOOver's statement follows:
with the war practically over, we
enter a new economic era and its imme-
dlate effect on prices is difficult to an
tlcipate. The maintenance Of the en-
barge will prevent depletion Of our
stocks by hungry Europe TO any point
below our necessities and any one who
contemplates speculation In food against
the needs Of these people can well be
warned OF the prompt action Of the
government The prices Of some food
commodities may increase, but others
will decrease. because with liberated
shipping accumulated stocks in the
southern hemisphere and the Far East
will be available. The demands upon
the United States viii change IN char-
acter but not in volume.
"The currents which affect food prices
In the United States are much less con-
lrolled than I'm the other countries at
war. The powers OF the Food Admins
tration in these matters extend:
First. To the control OF profits by
manufacturers, wholesalers and dealers
and the control OF speculation IN f0od-
stuffs They do not extend to the con
troll Of the great majority OF retailers
10 public eating places or the farmer
evcant so far as this can be accom-
plished on a voluntary basis.
second. The controlled buying Tor
the Allied civil populations and armies
the neutrals and the American army
and navy. dominates the market in GER
tain commodities at all times. and IN
other commodities part OF the time. In
these cases 10 Is possible TO effect IN CO.
operation with producers and manufac-
turers. a certain amount OF stability IN
price. / have never favored attempts
TO TX maximum PRICES by law; tne uhl-
versal history Of ihesA devices in Europe
has been that they Worked against the
true interests OF both producer and
consumer.
"The course OF prices during the 1rst
year Of the Food Misunderstanding
is, practically the period ending July. l.
1915. is clearly shown by the price IN
dexes OF the Department Of Agricul-
ture and the Department OF LABOR.
Taking 1913 prices as the basis the
average prices Of farm products for the
three months ending July /, 1917, WERE
according to the Department OF Agricul-
ture's price index. ii5 per cent more
than the average OF 1913 prices, and, ac-
cording TO the Department Of Labor
index. it was Of per cent over 1913
prices The two departments use some
what different bases OF calculation.
"The average Of farmers prices one
year later-that is, the three montils
ending July 4, i9iS-was, according 10
the Department Of Agriculture indexes
i97 per cent over the 1918 basis. and,
according 20 the Department OF Labor
Index. was IA per cent over the 1913
average. Thus farm prices increased II
ner cent on the Department OF Agrlcul-
tire calculations and % per cent upon
the Department Of Labor basis.
"An examination Of wholesale prices
that is. Of prepared foods-snows
different story: -.
not maintain an index OF wholesae
prices. but the Department OF LABOR
does. and this index shows decrease
I'm wholesale prices from 81 per cent
over 1918 basis 20 70 per cent over ilc
1914 basis for the three months endlng
Julv 4. 1917. and July 1, 1918. respect
iyeiy. The Food Administration price
index OF wholesale prices, cdlculateu
upon stlll another basis, shows q ue-
crease Of from 81 per cent TO ~ per
cent between these periods one year
apart. ,.,
In farmers prices and a decrease III
wholesale prices OF food during lie
year ending July 1. 1918. In other words
a great reduction took place IN middle
mems charges amounting TO between
IS per cent and 30 per cent depending
upon the basis OF calculation adopted.
These decreases have come out OF tle
elimination Of speculation and profteer-
ing.
"The course Of retail prices corrob-