Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-01-24
U. S. FOOD ADMINISTRATION HELPS
MORALE OF AMERICA AND ALLIES
Accomplishments of Hoover's Organization Are Shown
in Review of Work Since Last Apri-Supplies Con-
served and Distributed Among Nations


tribution prices. while at the same time
employing them to relieve as much as
possible allied Europe's acute and
threatening shortage of wheat, meats,
fats, sugar and dairy products, by ship
meuts Of those things from this country.
1t believes that this vital and neces-
sary service has distinctly helped to sus-
tain the morale Of the Allied nations.
1t believes that what it has accom-
plshed along this line is pre-cminently
the greatest of its performances.
I'm tho handling Of this vast and OK
ceedinGly complicated war task, how
ever the necessity for sustaining Amer
ican morale has not been lost sight OF.
The requirements along this line in con-
nection with fuller control Of retail
prices have become increasingly evident:
and more may soon be done under sup
Elementary legislation to stabilize re-
tail prices at reasonable levels
Price summaries show that the policy
of eliminating speculation, boarding,
profitecrng and waste in the production
and distribution of American foods has
greatly aided in reducing domestic prices
OF basic products TO reasonable levels
right up to the door of the smaller re-
taller. II must, however. be remembered
that primarily this policy was adopted
20 regulate production and distribution
costs to better enable the food admin
istration TO discharge its International
duty to the American and Allied world.
II is true that some control has been
exercised over the small retailer. But
II must be remembered that this has
been incidental TO the larger service OF
supplying food to the entire American
and Allied world.
Although it exercises by law no di-
lt al r.Fatr rgl
exercised to an apprcciablc extent by
warning them that II they charged
proftcorinG. prices they would get no
mere supplies from the wholesalers,
who are by law directly under Govern
mont control. This has had a salutary
effect on all small retailers, and al
though retail prices generally have been
above their legitimate levels it is safe
, to say that they have not by any
means been so high and unreasonable
as they would have been had govern
mental control OF production and dis
tribution not existed.
SUGAR AND BREAD EXAMPLES
The retail price of sugar is a case
ia point. 1t is typical OF that group Of
commodities whose prices have been
held to fair levels through the small
retailer and direct to the consumers
door. Refiners have stated that had
not the food administration controlled
the price and distribution Of sugar it
would have gone, judging by previous
war experiences, to twenty. twenty-fi"
thirty, or even thrty-fvc cents a pound
instead Of staying, as il has, between
nine and twelve cents a pound retail
When you stop to consider that every
penny's rise in the price Of a pound
of sugar means SlS,00O,O0O taken
out of tho consumers pocket, and when
you recall that what has been done
was done in the face Of an actual sugar
shortage i'm the American and Allied
war world. I: is performance was no
mean accomplishment
Then there IS tlrc matter Of bread.
/ The baking industry agrees that if the
Government had not taken control and
eliminated speculation. waste, boarding
and proiiteering from the milling and
| baking trades thus reducing wholesale
prices 20 reasonable levels and making
that reduction influence retail prices,
the retail price of a pound loaf of white
| bread would be not less than fifteen
cents throughout the United States to-
day. 1t sells actually from seven to
nine cents everywhere in the land.
Before the war dollars worth of
bread in the United States represented
about forty cents worth Of actual in
gradients, labor and distribution cost,
So that with every dollars worth OF
bread purchased by a consumer before
/ the war he was buying sixty cents worth
of waste speculation and excess profits
! Of which he did not derive the benefit
/ A seven, eight or nine-cent loaf Of bread
I in the United States today thanks to
the United states Food Administration.
represents exactly seven, eight or nine
cents worth of material, labor and dis
tributbOn cost.
Federal control, according to national
statistics, succeeded in turning the cor
ner i'm theSe unreasonably high prices
about the middle Of December, 1914 II
has since succeeded in keeping wholesale
prices of controlled commodities, and re-
tail prices Of the same among retailers
doing more than 100000 worth OF busi-
ness annually, at fair and reasonable
levels. This has also been effected In
part among small retailers
II should be borne in mind, however,
tbat I'm wartime reasonable prices do
not necessarily mean low prices. The
wartime trend of prices, particularly in
the face Of the actual world shortages IN
the present war, is ever and inevitably
upward. The only thing any human
agency can do in the present situation
is 10 keep the wholesale, and so far as
possible the retail, prices separated from
4 the cost of production and distribution
only by the margin Of a reasonable
profit.
Finally, the United States Food Ad-
mInistration feels that the American
public should constantly bear in mind
the fact that this question Of retail
prices, though one Of keen and vital in
terest TO the individual and one for the
Government to deal with in due time
Is not so vital as the broader prob
len, of winning the war by squaring our
food supply with our international in
tereSty