The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1918-01-02
Senatorial Critics Ask Him
Why Sugar Became Scarce
and High Last
Year.
CAUSE FOR INCREASES
Food Administrator Lays Blame on the
Increase In the Per Capita
Circulation Of Money
In the Nation.

UNITED Press Leased Wire Service.1
WASHINGTON, Jan. 2.-Herbert
Hoover today answered criticisms OF
his food administration, when he tes-
titled before the senate sugar probe
committee. High food prices he at
tributed partly to greatly increased
per capita, gold circulation and sud
den conversion Of thousands OF men
from producers to consumers only.
Senator Reed. chairman OF the COM
mittee ard violent critic Of Hoover,
turned over cross-examinatton TO
Senator Lodge when the hearing be-
gan. Reed devoted his time to chew
ing gum and looking bored.
A crowd packed into the committees
room, among those present being
Mrs. Hoover.
Tremendous increase In tho per
capita circulation Of money was ono
cause. in my opinion" said Hoover.
"This circulation advanced 50 per
CAPITA In the United States In one
year. duo to the gold inflow.
Another was the sudden withdraw
al Of millions Of men from productive
work to fight. They at once became
consumers entirely"
The first clash Of the hearing came
when Lodge sought to go into Hoov-
er's testimony last May before the
senate agriculture committee.
Hoover didn't want to discuss this
testimony.
1T was given in executive session"
he said.
"You stated at that time that there
would be q sugar shortage In Octob-
err" asked Lodge.
'I said the available sugar In the
United States would be exhausted by
October 7 said 1t in executive ses-
sion," said Hoover. Had | under
stood my testimony would be made
public, / should not been able to
speak SO frankly. had no desire to
spread an alarming statement"
Hoover said that when he found
senate committee. he wrote Senator
Gore, chairman of the committee.
protesting against the making public
of portions Of the Hoover statement.
"The giving out of the statement
means an immediate increase OF a
cent a pound in sugar price" Hoover
wrote Gore.
"Just why didn't you want this
statement given out when you later
gave interviews stating it was desir-
able to create an imaginative alarm
to aid saving?" asked Lodge.
'I didn't want to create this imag-
inative alarm with regard to hypo-
thetical condition which might occur
with regard to sugar" replied Hoov-
er. II did want to create 1t with !
regard to the whole food situation, !
so the people would conserve all
foods"
Lodge quoted from interviews with
Hoover and speech he delivered at
Brown university to prove that |
Hoover fostered the country's alarm
over the sugar situation by repeating [
that a world shortage was imminent.
1T was proper to tell the people
of the country that world short
age was looming up and that the al
lies would have to go sugarless I'M
less we saved" said Hoover, warmly.
"It was improper to give out reports
Of executive hearings in which I said
the Cuban crop might be reduced by
a million tons. That created alarm
and raised prices. The people ought
to be told the truth about their whole /
food supply; they have been saving
food since we told them IL they didn't. .
all the world would suffer-
'Didn't your statements concerning |
the coming sugar shortage affect the |,
market and shoot the prices UP "
asked Lodge.
II don't think so,' replied Hoover,
quoting trade journal as saying the
sugar market was dull, at about the
same time as Hoover's shortage pre-
dictions were made.
Senator Reed demanded Hoover
show him the journal Reed then
read several paragraphs from it,
Continued on page 50