The Leader, enterprise and press. (Fitzgerald, Ga.) 1915-1921, 1918-11-18
u. S. Entering New
Economic Era
fBy Herbert Hooyer.)

With the war effectually over we
enter new economic era and its i'm
mediate effect on prices is difficult to
anticipate. The maintenance of the
embargo will prevent depletion of our
stocks by hungry Europe to any point
below our necessities and anyone 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
Ill the Southern hemisphere and the
Far East will be available. The de-
mands upon the United States will
change in character but not in vol
umc.
The course of food prices in the
United States during the last fifteen
months is OF interest. In general, for
the first twelve months of the Food
Administration the prices to the
farmer increased, but decreased to the
consumer by the elimination of profit
eering and speculation Due to in
creases in wages, transportation, etc,
the prices have been increasing during
the last four months.
The currents which affect food
prices in the United States are much
less controlled than in the other coun-
tries at war. The powers of the
Food Administration in these matters
extend:
First, to the control Of profits by
manufacturers, wholesalers and deal
ers, and to the control of speculation
in foodstuffs. They do not extend to
the control of the great majority OF
retailers to public eating places, or
the farmer, except SO far as this can
be accomplished on a voluntary ba-
sis.
Second, the controlled buying for
the Allied civil population and arm
les, the neutrals and the American
army and navy, dominates the market
IN certain commodities at all times,
and in other commodities part of the
In these cases it is possible to effect
in cooperation with producers and
manufacturers, certain amount OF
stability in price. | have never favor
ed attempts to fix maximum prices by
law; the universal history Of .hese
devices in Europe has been that they
worked against the true interests 0?
both producer and consumer.
The course of prices during the .irst
year of the Food Administrations
that is, practically the period ending
July |, 1918, is clearly shown by the
price indexes of the Department OF
Agriculture and the Department OF
Labor. Taking 1913 prices as the ba-
sis, the average prices of farm pro-
duce for the three months endinf July
|, 1917, were, according to the De-
partment OF Agriculture's price index
lis per cent more than the average
OF 1918 prices, and according to the
Department of Labor index, it was 81
per cent over 1913 prices. The two
departments use somewhat different
bases of calculation The average of
farmers prices one year latcr-that is,
the three months ending July /, 1918,
was, according to the department of
Agriculture indexes, l27 per cent over
the 1918 average. Thus farm prices
increased II per cent on the Depart
ment of Agriculture calculations and
IS per cent upon the Department OF
Labor basis
An examination of wholesale prices
that is, of prepared foods, shows
different story:
The department OF agriculture does
not maintain an index of Wholesale
prices, but the department OF Labor
does, and this index shows a de-
crease in wholesale prices from 81
per over 1918 basis OF 79 per cent
over the 1913 basis for the three
months ending July |, 1917, and July
/, 1913, respectively. The Food Ad-
ministration price index Of wholesale
prices calculated upon still another
basis shows a decrease of from "a per
cent to 50 per cent between these pc
RODS one year apart
Thus all indexes show an increase
In farmers prices and decrease in
wholesale prices of food during the
year ending July l, 1918. In other
words, great reduction took place
in middlemen's charges, amounting to
between IS per cent and so per cent
depending upon the basis of calcula-
lation and pro6teering.
The course of retail prices corrob-
crate these results alSo. Since Octo-