Arizona republican., 1918-04-13
HOOVER'S LETTER
 TO PRESIDENT IS
 GIVEN APPROVAL

eCutlVe session of the Arizona Cattle Growers association held yesterday, Dwight E. Heard referred to the efforts which had been made to establish d thorough going constructive national livestock policy. and read the following etter from Herbert Hoover national ,ood administrator to President Wilson
 Washington. D. C.,
 March 26 1918 Dear Mr. President:
 I feel that we have reached a posi- ton with regard to the whole meat in- dustry of the country that requires q consideration of policy. The situa- lion is one of the most complex with which the government has to deal, by virtue of the increasing influence that the government purchasing has upon prices, by the necessity of providing for increasing supplies for the allies, and the consequent reduction of civ ilian consumption and, with all, the due protection of the producer and the civilian consumer. This change of pol icy may take the form of more definite and systematic direction of the larger packers as 10 the course that they are to pursue from month to month, or may ever take the form of operation Of the packing house establishments by the government.
 The general economic forces bearing on the situation appear to me to be:
 Private Trading is Over
 l. The allied purchases for both civilian and military purposes in meats, as in many other commodities. have been consolidated by necessity of ship ping conditions and by necessity of the treasury arrangement for advances to the allies until private trading has been of necessity eliminated.
 It is also becoming necessary for the government to coordinate these pur- chases with those of our army and navy in order to prevent conflict in the execution of orders. This great con- solidation of buying has to some ex- tent and will increasingly, dominate prices.
 We have since last September, rec ognized that the export purchases of pork products would affect prices and after consultation with important com mlttees of swine growers we last Autumn gave a rough assurance to The swine producer of q minimum price which we felt that we could maintain from the export buying and this has been maintained although with con- siderable difficulties and has been beneficial in stimulating production The indications are that these pur- ehases will now be further increased.
 Matter of Beef Purchase
 The beef purchases have not up to the present time been sufficient in volume to more than temporarily af- feet price. but the present indications are that for some time in the future they will be greatly increased and to a point where they may affect prices materially.
 2. The increased quantities required Tor export must be obtained by either increased production or by reduction In civilian umption-probably both.
 The reduction in civilian consump- ton can be obtained much the most squitably by voluntary reduction by the consumer and by moderate restraints such as meatless days, ct cetera, and while it may be contended by some that a reduction in consumption may be obtained by increase in price, suct conservation is obtained by the elim- nation of that section of the com munity with the least purchasing pow re. In other words, conservation by price becomes conservation for the rich and not for the poor; whereas ar extension of the conservation policy now in force places reduction in con- sumption where it rightly belongs-or those who can save from plenty. no upon those who save from nourish- ment.
 FaVors Voluntary Plan.
 lt appears to me also of the utmos national importance that we shal maintain through the country a com plete sense in voluntary reduction il the consumption of all commodities i We are to provide the necessary sur. pluses either in money, man. power O material necessary to winning the war On the other hand. the adjustment O conservation measures of this type ant the surplus required from time to tim Is extremely difficult without thes measures themselves affecting pric and developing discontent and criti cism in sections of the producing com munity.
 I recognize fully the well founded ob iection to any theory of price fixing but where the purchase of war ne cessities in a given commodity hay reached such a volume that the pur chase of these commodities trench int the domestic consumption. the opera ton of this purchasing power become a condition of price fixing and, to m, Ilnut dll lueOIleS go Dy the board.
 3. The government is thus face three alternatives in the matter of con trol of meats:
 First of Alternatives
 (a) To free the government
 from all interest in price by aban-
 doning direction of war purchases
 and to abandon conservation meas
 ures because these may also affect
 price.
 This would be a relief to the gov ernment but with growing volume c purchase the price influence will b transferred to uncontrolled agencie who are themselves price, fixing an carries the following dangers:
 It will stimulate profiteering an speculation. Prices in the season C ,he year of large production can b manipulated downward and in tn sparse season will ascend to the poir where some classes will be eliminate from consumption. The cost of Twin thus subjected to abnormal fluctuatio will reflect in wage discontent and in stability. It will destroy systemati saving of the commodity by individual