davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1918-03-24

guns, aeroplanes, ships, submarines and
great variety of other similar things
that are never owned in large quanti-
ties IN time Of peace by any one. Con-
scrlptlng wealth would not create these
things Conscripting wealth would
result only in bringing the government
into possession of certain parts Of the
land, buildings, machinery, mines, for
ests, farms, jewelry, works of art.
books, automobiles, and similar other
things of little or no use whatever 10
hight with, that go to make up the
wealth of the country In word,
actual conscription Of wealth would re-
suit in nothing much except chaos and
new and multitudinous responsibilities
for the government.
Not . per cent of the wealth of HI.
nation is in the form of real money
not lO per cent is in the form OF war
necessities, and not one-fifth of this
III per cent or less is in the form 80
war necessities that could be conscrint-
ed without starvation and incalculable
suffering to people who are anvth;n.
but rich. Actual conscription of wealth
would not result in raising cnoupb w.r
material to keep the army roinc q
month. Wealthy people do not buv
shrapnel' uniforms, machine guns. am
pulahces and kindred things for in.
Vcstment purposes in times of peace
and so they do not have such things in
their possession in time of war. Such
people invest in land, buildings. indus
'rles' railroads, banks, mines. public
utilities and like things of fxed
character, things that make up tha
permanent wealth Of the country. Con.
scripting wealth would be about as
helpful in Quitting the army as con-
scr'ptlng cigar store Indians would he
IN manning the guns. But the thought
behind the suggestion is NOT TINT
wealth. should be actually conscripted
IN the sense that men arc, but rather
that IN so far as is practical tho rich
should be made to pay the largest part
Oh the money cost Of the war. And
TINS Is just. We have seen that the
rich cannot be compelled to pav anv
appreclablc part of the energy and
hardship cost, so it is proper that thew
should bear disproportionntc share
OF the money cost. This the government
New-York tribune., 1918-03-24

, reason is there basis for this argu-
ment. During the Civil War prices
were allowed to find their natural
levels. And though we had at that
time neither an excess profits tax nor
a gold-based scientific currency such
as we have to-day, no one in the North
who was able and willing to work
went hungry. Prices rose to high
figures and behaved generally in an
unaccountable way, but wages fol-
lowed closely enough to prevent hard
ship, though, of course, there was COM
plant. Sugar rose from 12 to Is cents !;
eggs from Is to 25 cents, and cheese
from 8 to 18 cents.
There was no uniformity. On gold
basis the average price of all COM
modities rose about 1875 per cent. But
incidentally they were not as high
even then as they were in the year
1916, the year before we entered the
present war. The same statement ap-
plies in a general way to wages. And the
net result was that the civilians of the
North as whole came through with out
real suffering, if not without discom
fort. And with a good banking and
currency system such as we have to-
day and an excess profits tax such as
We have to-day, they doubtless would
have come through quite comfortably.
True, the Civil War was a local war,
but the principle which governs is
the same in local war as in a world
war. 1t is the principle We commonly
New-York tribune., 1918-03-24
War Does Not
Change Characters

Though, of course, there are excep-
tlons. The general rule upon which
business has been conducted is to sell
at the highest price obtainable and buv
at the lowest at which goods of the
right quality can be had. And, gen.
orally speaking, no one departs very
widely from this rule. The man who
has labor to sell sells it in the highest
market; even sometimes he organizes
unions for the purpose Of advancing
wages. The college professor goes to
the college that pays him most, the
minister to the church that pays him
most, while the farmer, the manu-.
facturer and the dealer all seek the
highest market for their goods. This
is the general rule. No one ouarrels
with that rule much in time of peacc
Tor the net result of its general appli-
cation in time of peace is reasonably
Just. But war dsturbs matters.
AS matter of fairness we might
remind ourselves of few other ohy;.
o"o A">'o' lie 1SCC or war does not
change mems characters. There arc
no more men who are willing to take
advantage of their neighbors TODAY
than there we're before war was do
clared.
But this is little aside f rom Tho
real point. The real point is that
even If "profitecring" were indu,cod
IN as extensively and corruptlv as the
thoughtlcss like to believe, its net re- j..
suit, with comprehensive excess
profits tax law in force, would he
merely to turn money into the public
treasury to be used in prosecuting the
war
so the "profiteer" argument fall, Of
Its own weight
Next comes the argument that in
the absence Of price fixing prices will
rise so high that workingmen cannot
Keep themselves and their familics
supplied with the necessarics of life
IN neither past experience nor logical
New-York tribune., 1918-03-24

that throughout the whole war period
certain industries will enjoy unusual
opportunities for money making, and to
offset this an excess profits tax is nee
essary. And as matter of justice
such tax should be made just as dras-
tic as it needs to be to prevent abnor-
NAL profit. Nothing could be more
monstrously unjust than for a certain
few people to be making abnormal
profit when the country as whole is
running at loss and the people as Il
whole are subjected to hardship. But
for the purposes Of this discussion it
may be assumed that Congress will see
to it that the excess profits tax law
prevents any such result. For Con-
gress easily and certainly can do this.
Thus we do not admit that the
"profiteer" is an argument
Unfortunately, there is widespread
misapprehcnsion as to the extent to
which "profteerng" as we now use the
word in its popular sense is made pos
sible by the fact of war, and also as to
the extent to which it is indulged by
those to whom war makes it possible.
But all of this, to put it mildly, is
rather thoughtless. The facts. of
course, are that the number of business
people to whom the war brings oppor-
tunities to make exorbitant profits is
few in proportion to the whole number
engaged, and that generally speaking,
those who do make unusual profits do
New-York tribune., 1918-03-24
What Low
Prices Will Do

Price c-fxing," as we use the words,
means keeping prices down. Keeping
prices down does not tend to make us
work more steadily OR buy things more
sparingly. 1t has the exactly opposite
tendency. If l am rather unambitious
sort and can earn enough by working
.our days to keep myself and family
reasonably comfortable for week.
which | can easily do if prices are low.
then the chances are that I will not
work steadily. And il men are scarce
and Jobs plenty, the chances arc that
VIII rot be overly Industrious when I
do work. Or, if / am a careless and
improvident sort, / will spend abopt
all ! make, whatever it is, and use nm
and waste all the food, clothing and
"iner necessarics and luxuries nv
money VIII buy, and the lower oricc.
are the more | will use and waste.
In short, low prIccs relieve me Of the
necessity Of working hard all Of tho
lime and at the same time make it
easy for me TO waste necessities and
indulge in luxuries. They make it pos-
sibIc for me 10 loaf and waste. They
mako me produce less and waste more.
Or II am, say, man Of average en-
crgy, ambition and judgment, low
prices, though affecting me in Lesser
degree than they do the pronouncedIy
unambitious or the particularly i'm
proyident, will neyerthcless affect me
IN the same general Nay. Or, again,
New-York tribune., 1918-03-24
Price Fixing Pampe the Civilian Expense Of the Fighting Man

II am producer or manufacturer
low prices. by impairing the efficiency
OF my men, tend to decrease my out
put and at the same time, by denying
me the profit out Of which l might
otherwise expand that business, pre-
vent my increasing my output. They
tend to diminish the production of my
farm, my mine or my factory
Prlce-tixing certainly does not slim
ulate production or retard consumr-
ton On the contrary, it promptly, pos
itively and extensively retards produc-
ton and stimulates consumption. This
is in accordance with the natural law
of prices, the law of supply and de-
mand. High prices stimulate produc-
ton. Low prices retard it.
Price-fxing, then, because it retards
production instead of stimulating it,
and stimulates consumption instead of
rctarding it, becomes a serious draw
back rather than an aid in winning the
war. 1t not only fails to accomplish
the vital thing we now demand of eyery
new law and every new activity, but
it actually does the opposite. Witness
on the one hand the falling off in coal
production which followed the fixing
of coal prices last fall and the decrease
in steel production which followed the
coal shortage in December, and is still
continuing, and on the other the large
volume of non-esser'tials being sold in
every part of the country. SO it fails
to stand the test. 1t will not shorten
the war; rather it will lengthen it. 1t
will not save lives. Rather it will cost
them.
New-York tribune., 1918-03-24
Stay-at Home
Not the Issue

Does price-fxing help us to do this ?
Let us remember that we arc not ask
ing whether price fixing makes it easy
Tor the stay-at-home. That is a matter
of secondary Importance. The stay-at-
home is going to come through with a
whole skin, whatever happens; he is
going to get enough to eat and enough
10 wear to keep sound and we'll, what
ever happens. The question is, Does it
help us to muster, outfit, transport and
maintain this kind OF army, Does it
lessen the toll and risk Of the man who
goes out to fight?
II the answer to this question is yes
then it is good policy; but if no,
a bad one. That is about all there
IS to it.
As price-fixing affects the selection
Of the men who are to do the fight
ing only in the most indirect way, this
answer is to be looked for in it's effect
upon the country's ability to provide
The things the fighter needs in the
quantities in which he needs them.
The governments vaults may reek
with money, its balances in the banks
may represent enough money to ran
som fifty million kings, but it can
buy what doesn't exist 1t can't buy
the things it needs at ali until we the
people, the s'tay-at-horne people, pro-
duce them, and it can't do it then un-
less We save as we'll as produce. Ordi-
narly, we ourselves consume about all
We produce about as fast as we pro-
duce it; that is, We either actually eat
It up or wear it out. or else transform
Il into permanent wealth." such as
buildings and the like. Now, to let the
government have what it needs we
must cut down our own consumption as
we'll as Increase our output
New-York tribune., 1918-03-24
Has No Scientific
Economic Basis

AS pricc-nxine is fundamentally
wrong-that is, is in direct violation of
natural law-thcre is no scientific basjs
from which to figure what particular
price should be placed upon any given
commodity; there is no established
rule What the price should be is lust
a guess.
A new difficulty growing out of GER
tain price arises. Governmental au-
thorities change the price to eliminate
this difficulty, and then there are new
difficulties, or the authorities them
serves are thrown out Of Office and
thcLr successors change the price to
SHOW that they know more than their
predecessors, and 80 create new diff
cultfes. Questions Of price become no.
iitical issues. Jones il elected to office
New-York tribune., 1918-03-24
BY A. E. Adams
President First National Bank,
Youngstown, Ohio.

President First National Bank
Youngstown, Ohio.
Iron an article In Tho BANKERS Masazine)
" DETRIMENTAL interference
II with prices is serious matter
Prices are of the very essence
Of our economic life. They are not only
result of certain human activities and
desires and a barometer of certain
kinds of economic pressure, but they
are also, and more Importantly, the
cause of many Of our very most vital
activities. Indeed, they are one Of the
most potent of all the forces that move
in the economic life of the people.
Price-fxing, therefore, is subject Of
first Importance.
AS a whole, the American people
take it as a matter of course that price
fixing in war time is both necessary
and desirable. The opinion of the av-
erage man, when he takes the trouble
to form one, is that there can be no
possible question about the matter,
that prices positively and absolutely
must be kept down. Nevertheless, there
is grave doubt as to the soundness of
this belief, and in almost every COM
munity in the country there are
thoughtful men of experience who hold
it to be faulty. Even there are those
who go so far as to hold that the
price fixing feature of our present law
stands out conspicuously as the most
monumental blunder ever committed by
any Congress in the history of our
country; blunder so farreaching in
its probable effects that in the end it
sands of lives.
Let US examine the reasoning
through which this adverse opinion OF
price fixing is reached.
Does price-fixing help us to shorten
the war; That is the question. That
is the only question.
To win swiftly we must put an army
of millions of men on European soil
and back it up with such an abundance
of arms and ammunition as no army
ever had before, with the very last
pound and last yard and last bushel of
every kind of thing that any army can
use to advantage, with ships by the
thousands, with arplanes by the tens
Of thousands, with every least and
every greatest thing that human skill
can devise and human labor produce to
lessen risk and increase effectiveness.
1t is this kind OF army with this
kind Of backing that it is our boundcn
duty to send QUITO send out, to sup
port, and, yes, to quicken with the
knowledge that we at home are also
making sacrifices that really hurt. And
VIC are perfectly able to do this, and
do it quickly if we really get down to
business.
New-York tribune., 1918-03-24

price fixing is that the discomfort which
the rich; that is, thai while high prices
will cause every one else to forego
luxuries and cut out wastes. the rich
will still be able to indulge themselves
with comparative freedom. This, OF
course, is true. High prices will not
prevent rich people from buying what
they want. But neither will fixed Cow)
prices, or, for that matter, any Other
kind of prices. Indeed, neither will
anything the government can do unless
it confscates their wealth or adopts
and enforces a scheme of control so far
reaching in effect as to be the equiva-
lent of confscation.
The Consumption
Of Wealth
Frequently we hear the suggestion
reasonable as CONSUMPTION of men, if
not more so. There can be no quarrel
with the general idea conveyed by this
suggestion. If either the money or the
material things needed to carry on the
war could be obtained by conscripting
wealth, no doubt at least 99h per cent
of us would vote to have wealth con-
scripted. But to conscript wealth lit
orally would help us in Quitting the
army just about as little as it would
in mastering the men who compose it.
The things we need in addition to man
power are food, clothing, ammunition,
New-York tribune., 1918-03-24

so without departing in the slightest ex-
tent from the practices which the whole
world for centuries has approved as
both right and proper.
New-York tribune., 1918-03-24

refer to as the law of supply and de-
mand. In the situation in which we
lind ourselves to-day it means that
prices can only rise high enough to
make it possible for the man able and
willing to do a real days work to
support his family when, and if, Ger
many can whip us. The bigger the
army German pressure compels us to
train and support, the greater the de-
mand there will be for certain COM
modities that are war and living ne
cessities. The greater the demand for
these things, the higher the prices.
Considering the war as the sole
cause of changes in prices and wages.
and it is logical to do this, because no
important changes in our economic
situation are taking place except those
that are due to the war, we can state
it more clearly thus: The "spread" be-
tween what the average man can earn
and what it costs him to live is in in
verse ratio to the pressure Germany
brings to bear upon the country.
Wages, like prices, move in obedience
to the law Of supply and demand and
are affected by changes in the volume
Of money in existence. In normal
times there is in this country com
Portable "spread" between the average
wage and the average cost of living
High Prices
And the Rich
That is, prices cannot rise to such a
point that the able bodied, industrious
man cannot support his family until
we are economically exhausted. When
we set the population and wealth Of
our country and it's allies in one
column and those of our enemies in an
other we are certain that the enemy
Will reach state of economic cxhaus-
ton before we even approach it. and
therefore we are certain that prices
here cannot reach unhearable heights.
We are certainly going to win in the
end, though clearly we arc going to
waste hundreds of thousands Of lives.
II we don't pretty soon commence to
punish ourselves here at home moro
than we have so far. SO the fear that
prices might rise to "impossible
heights" is without foundation.
Inc next reason usually offered for
New-York tribune., 1918-03-24
the United States Continue the Present Policy Of interfering With the Law
Time the Practice Is Nothing Short Of Wholesale Murder.

because he favors ten cent sugar, and
Brown defeated because he thinks it
should be eleven cents, or vicc rersu.
Utterly impossible situations arise in
every department of life; every prob
lem solved creates two more, and every
difficulty overcome leads to two others
yet more serious; and so on to un-
imaginable confusion.
New-York tribune., 1918-03-24
How Prices
Arc Determined

In word and broadly speaking, the
law OF supply and demand determines
prices. In this connection it is perhaps
proper to remind ourselves that what
we call the law of supply and demand
Is the expression in business life Of
New-York tribune., 1918-03-24
Fails to
Speed Production

Not a single one of the activities
eltered upon by the government in
connection with prce-fxing is ca:cu-
lated to speed up production. Not even
the most optimistic and enthusiastic
supporter Of price fixing can claim that
it will do this. Indeed, the most stu
pid man alive knows to a positive Ger
tainty that it will do the exact oppo-
site. No better reason for ignoring
these activities is needed
Now to answer few of the more OBJ
vious objections to the release of
prices, or, to put it the other way, to
point out the more conspicuous fall
lacies in the argument in favor of price
fixing.
First Of all comes the argument that
if prices are not fixed the "profiteer"
will grow rich out of the hardships of
other people less fortunately stu
ated. This is no argument at all.
With just and comprehensive laws tax
New-York tribune., 1918-03-24

is already making them do. Whether
the last increase in the income tax will
accomplish this fully enough to be en-
tirely just is question concerning
which there will be a division of opin-
not cover the matter it can be made
to do so.
The circle banner. [volume] (Circle, Mont.) 1914-1939, 1918-11-22
MODIFY RESTRICTIONS
ON NON WAR INDUSTRY
First Step Is Taken in Conversion of
Country to Peace Basis-Auto-
mobiles Already Affected

Washington, Nov. 13.-As the first
step in national industrial readjust-
ment from a war to a peace basis, the
war industries board yesterday an
nounced notifications of the restric-
tons against the non-war construction
and manufacturing rules.
All Industries whose peace time out
put has been curtailed in the inter-
est of the nations war program may
now increase their output 80 per cent
of the amount of restriction imposed
by the board, while all restrictions
are removed against the building of
farm or ranch buildings, structures,
roadways, or plant facilities for rail
roads, railways and other public
utilities and the construction, main
tenance, improvement or development
by federal, state or municipal authori-
ties of highways, roads, boulevards,
bridges, streets, parks, Fairgrounds,
and public utilities, including water,
sewerage, light, power and street rail
ways.
Forty-two specific industries, chief |
among them the passenger automo.
bile industry, are affected by the mod |
Ifications of curtaiiIents imposed on |
manufacturers since the war began. |
The circle banner. [volume] (Circle, Mont.) 1914-1939, 1918-11-22
REVISION OF REVENUE BILL
is MEETING NO OPPOSITION
Some of Secretary McAdoo's Proposals.
However, Meet With Strong
Opposition

Washington. Nov. 16.-Downward
revision of the war revenue bill to
about the six billion dollar total rec
commended by Secretary McAdoo ap.
pears to be assured, members of the
senate financial committee stated last
night after Mr.. McAdoo had person
ally explained TO the committee sug-
gestions as to future government fl
nancing made in his letter to Chairman
Simmons.
Some of the secretary's proposals,
however, especially those to abandon
excess profits taxation and increase
individual income taxes in 1920, met
with strong opposition. senators said.
Republican opposition to Mr.. Nc
Adoo's recommendation for immediate
specific limitation of taxes TO $4,000.
100000 in 1920 also developed. but
Senator Simmons said Il minority of
the committee favors it.
The circle banner. [volume] (Circle, Mont.) 1914-1939, 1918-11-22
HUNGARY Is A REPUBLIC:
COUNT KAR0LYI GOVERNOR

Berne, Nov. 1G-A wireless dispatch
from Budapest says Count Esterliazy,
Count Szechenyi, Count Deseffy and
Baron WASHES have returned from
Eckartsau castle where they conferred
with former Emperor Charles. The
latter, they declare, has decided to re-
nounce all participation in Austrian
and Hungarian affairs.
The Hungarian national council and
the two chambers of parliament. the
wireless message adds, will meet TO
day to proclaim a republic, dissolve
the two chambers and elect Count
Karolyi governor of Hungary. 1t is also
planned to proclaim universal, secret
and equal suffrage for both men and
women. The message adds that all
these resolutions will become effective
and that today will be
made a holiday. enabling the popula.
ton to celebrate the event.
The circle banner. [volume] (Circle, Mont.) 1914-1939, 1918-11-22
GERMAN MILITARY MACHINE
SLOWLY REVERSING ITSELF
Much Wagon Traffic Opposite Amer
lean Front Indicates Removal
of Supplies

Headquarters of the American First
Army in France, Nov 16.-The Ger
mans. in force begun today to leave
the points occupied northwest of the
American lines. according to German
wireless messages. opposite the Amer
can front there has been much wagon
and automobile traffic, the Germans
apparently hauling out the supplies of
war material which are not to be left
behind.
A few German rear guards will re-
main as patrols and to pick up any
should some of the Ger
mans attempt TO desert American OBJ
serTation balloons went up yesterday,
the observers endeavoring to get an
idea of the extent of the German
but most of the traffic
was so far back that little of the ac
tivity could be seen.