The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-08-23
WHERE PRICE FIXING FAILS.

WHERE PRICE FIXING FAILS.
The efforts of the government in
the direction of price fixing, up to
this time have failed to allay COM
plants regarding the high cost of liv-
ing, or to stop the clanor of labor
for wage increases to meet them. 1t
Is of no ADVANTAGE that . laborer's
wages shall be increased from four to
six dollars unless the six dollars will
buy more of living necessities than the
four dollar wage permitted. 1t is of
no advantage to the public to fix the
price of a manufactured product be-
low its cost because scarcity is q nee
essary result with its resultant in
creased prices or perhaps worse, an
entire impossibiIity to get the article.
The experiepce of the country in
the matter of price fixing has not re-
suited in shaking the belief of the
conservative experience of the BUSH
ness world that the law of supply and
demand is and always will be the
proper regulator of prices. says The
Mining Congress Journal. The fixing
of a minimum price on wheat did not
stimulate wheat production. The
price fixed at the time of its determi-
nation was a very liberal price and If
production costs had remained sta
tionary the intentions of the price fix
ers probably would have been realized.
Extraordinary war conditions created
so much of an advance in costs and in
the price of other cereals that the av-
erage farmer found it Improbable
to raise wheat and more profitable to
raise barley, oats and other crops
Had it not been for the patriotic inn
pulses of the farmers of this country
We should not be in anything like the
enviable position we now are with re-
spect to this years wheat crop.
The fixing of q maximum price on
coal did not prevent exorbitant profits
on coal, but did stop production from
high cost mines. and by misleading the
public prevented the buying at the
time when its transportation to distant
points was possible. This resulted in
putting impossible burdens on the
! transportation system and a disorgan-
| ization from which our transportation
| oyStCAA1 has lOI yet 4uIIy TGCON0E6Q.
The advantage or disadvantage of the
price fixing system must be tested by
it's effect upon the volume of pro-
duction in this particular article.
If the production be in excess of the
amount required to meet the public
demands. prices will soon adjust
themselves to a point of fairness.
| Upon the other hand, if production be
restricted, the public may easily be
willing to pay for the privilege of buy
ing at a high price rather than to do
without the necessary article.
The effect is to brin:; about a disor-
ganization which interferes with the
operation of all related Industries. If
prices could be fixed upon all articles
by some law sufficiently comprehen-
sive to .nvesti ;;.te all production costs
the system night not be SO detri-
mental.
The Mining Congress Journal re-
CARDS price fixing as usually detrf-
mental, always dangerous and utterly
impossible If it is to be made univer-
sal, as it must be to bring about uni
form results. The manufacturer who
is required to sell his article at a GER
tain price must be guaranteed that
the expense of operation, the aggre-
gate cost of material. labor and maj.
keting must be kept within the selling
price fixed by the governmental au-
thorities. If his expenses are in
creased, while his outcome remains
stationary. bankruptcy must follow
unless his previous profits have beer
unconscionab1e. The great element IN
the cost of all material and supplies is
labor. 1t ould require some courag
for a public man to advocate that the
price Of labor should be fixed by gov
ernmental agencies. Unle-- price fix.
ing is made universal no general good
can result