New-York tribune., 1918-11-25


more cars and locomotives for the rail-
roads until they are cheaper.
Consumers generally will, where they
can, wait for lower prices. Builders,
manufacturers, merchants and specula-
tors in materials and supplies will post
pone purchases, as far as possible, until
prices have declined to what appears to
them to be reasonable peace basis.
Food Products From Far East
1.-THE New York Evening Post" of No
vember 20 contains n column article
entitled Ear East Products May Be
Cheaper Here" 1t says that great
, quantities Of rice, peas. beans, tapioca,
various oils, potato starch, bristles and
wool have been coming into this coun-
try and are now stored in warehouses;
Buyers here began to hang back even
before the armisticc was signed.
prlces to-day are in some cases down
~ per cent from the cost Of the goods
Undoubtedly, our high prices of food
and textile materials are attracting
supplies from all corners of the earth,
IN spite Of the scarcity of ships. More
and more of these supplies will re ch
US and will depress, or tend to de-
press, the prices of food and clothing.
IN the face Of these facts, all the
WORKING out of economic laws, what
folly 1t is for our War Industries
Board to announce that it has fixed
prices and wages and regulated the
production and distribution of a GER
tam product-copper-on that gen
orally the industrial readjustment will
be slowed down gradually so that pro
ductlon will be tapered off of war
work and on to civilian work No or
ders are being cance led without con-
slderation of the nature of the work
n
being performed.'
While VIC do not admit that we
should continue to manufacture shells.
gas masks, guns, etc., simply to keep
workers employed at high wages, we
highly approve of the reported plan to
demoblllze the American army by in
dustrles and localities, instead of by
military units. This plan has been
adopted for the British army
Wrong Road to Prosperity
we have gone somewhat fully into
the economies of prices and the facts
as to the present tendency of prices
because we think that our government
is making great mistake in artifcallv
/ fixlng, or attempting to fix, peace prices
on war basis We think that to the
extent that our prce-tiXing boards can
sustain war prices they will postpone
prosperity and bring on the very in
dustrial and political troubles that they
hope to avoid.
In war times when the demand for
war goods is urgent and almost un-
limited, maximum prices can be fixed
as they were) on a basis that will
yield sufficiently high profits to keep
all mills running day and night.
In peace times the demand for most
products-except foods not urgent.
Consumers can, and usually do, wait
Tor what they consider reasonable
prices. For instance, builders will wait
Tor cheap steel, lumber, nails, glass,
TIN plate, paint, ETC., before they will
luild freely A farmer will not now
buy barb wire and wire nails to make
repairs if he thinks that they will de-
cline 25 per cent or so per cent inside
of year.
Generally. peace industries will move
put slowly while war prices are main
tanned If orders are held back our
mills Will soon be running on short
tlme, men will be unemployed. wages
VIII have to decline and labor troubles,
leading, perhaps, to socialism and Boil
shevism, will be upon u.s.
Is it not strange that our steel man.
utacturers, who, a year ago, tried to
prevent the government from fixing
maximum prices, and have now induced
do not see where this action will lead ?
Last year, at an average price of
about $40 ton the United States. Steel
Corporation produced about 100000
IONS and made more than $3.50, 100000
profit. Here was a profit of over $50
ton. it is not clear that it could
reduce the average price to $50 and
make $40 ton profit if it could run
at full capacity? Would $15O.O0O,oOO
profit year not be satisfactory? Is it
not probable that it could run full
for another year if prices were re-
duced 30 per cent? Could it not then
compete with England and Japan in
supplying reconstruction material for
Europe?
BY holding prices at the war level is
1t not probable that our steel mills will
soon be running on short time? If so,
not only viii thousands be unemployed
in the steel mills but thousands more
will be waiting for jobs in the building
and other industries that are held up
by dear steel. Is this not the way to
bring on industrial depression? Is it
not better to drop as quickly as pos
siblble to peace prices and to keep the
wheels turning and our workers en-
ployed?