New-York tribune., 1918-06-02

Administration deems such action
necessary to win the war. At the same
time, the association maintained that
the interests of the country would be
best conserved by applying as nearly
AS possible the same regulations TO all
industries and to all branches of the
industries, the producer, the manufac-
turer, the jobber, the wholesaler and
the retailer.
The government is now undertaking
to regulate and stabilize the price OF
other products, such as steel, rubber,
coal, sugar, wheat, cotton linters, etc;
why not fix the price of cotton? No
doubt such action by the War Indus
tries Board would be welcomed by the
advocates Of the government control Of
industrial establishments and other of
the peoples activities. But price fixing
by the government is a very serious
matter and there are able economists
who doubt its wisdom, even in war
times, and who are convinced that it
defeats the very end which it was in
tended to subserve. 1t is argued that
it curtails production instead of stin-
ulating it, and increases consumption
instead of curtailing it. By way OF
illustration attention is directed to the
reduction in the output of coal after
the price was fixed last fall, and the
decrease in steel production following
the coal shortage in December-and
which still continues. We have already
noticed the falling off in the mill con-
sumption of cotton for lack of coal. and
the output of many other Industries
was likewise cut down, to the loss of
millions of dollars. And consider what
effect it had upon regulating the wheat
supply. The government fixed the price
OF wheat at 1920 bushel, which, it
was contended at the time, was so
equitable that the farmer would be
willing to part with his crop that our
allies and our own people might not
suffer for bread. But many 100000
bushels were withheld from the mar
ket, under the belief that the present
Congress would raise the price to $3.50
oushel, and this was attempted.
1t can scarcely be doubted that an
effort will be made sooner or later to
fix the price Of cotton. Bills for this
purpose have already been introduced
in Congress. If any action should be
taken and the price is fixed by the
War Board, then that settles the mat
ter as to the future price of cotton. at
least so long as the law remains in
force. On the other hand. if the law
of supply and demand is allowed To
operate freely the market will reeu-
late itself and adjust itsolf to exist
ing conditions.
If this years American crop should
turn out 1S,500,000 bales or more and
there are no better facilities than at
present for getting it to the domestic
and to the foreign consumer. there
will be very little inducement to in
vest in cotton, certainly none to the
speculator. In times past. when tbsra
was no trouble with transportation
and speculation was rife, prices have
dropped below the cost of production.
That might happen again.
Better Shipping
Would Help Cotton
But there is brighter side to this
picture. Under government supervi-
sion there must surely be some i'm
provement in domestic transportation.
We have taken over the Dutch fleet
nave bargained for Japanese ships and
are building up merchant marina
with amazing speed. and then-al-
though there is no indication of it at
the moment-the war might end while
the coming crop is being marketed. in
which case the cotton planter would
reap richer harvest than he did in
the remarkably prosperous season now
drawing TO an end