The Cordova daily times. [volume] (Cordova, Alaska) 1914-1947, 1918-09-06
PRICE FIXING

The experience OF the country in
tT' matter OF price fixing has not
resulted in shaking the belief of the
conservative experience of the bust
ness world that the law OF supply
and demand is and always will be
the proper regulator Of prices, says
The Mining Congress Journal. The
1INng Of minimum price on wheat
I he price fixed at the time OF its
determination was very liberal
nlcc, and if production costs had
-'uaned stationary the intentions of
H., irice tNcrs probably would have
bo,n realized. Extraordinary war
,,adltions created 50 much OF an ad,
vance IA costs and in the price of
uilcI cerCal, that the average farmer
lind ii Improbable to raise barley,
g.. , and o,hcr crops. Had it not been
g.. the patriotic impulses of the farm
g., o. TIN country we should not be
-. anything like the cnNiable position
", now are With respect to this years
vneat crop.
The fixing of a maximum price on
,rtl did not prevent eXorbitant prof
los on coal, but did stop production
i,,l a 10.
,,. ding tnc public prevented the buy
A., at the time when its trAnsporta-
lion to distant points was possible.
, tbs resulted i'll putting impossible
n..dcna on the transportation system
...i a disorSaniIation from which our
spo,tallon system has not yet
i,iIy recovered. The advantage or
disadvantage OF the priCe-iiXing sys-
tom must be tested by its effect upon
the Volume ul production in this par
liCular article.
If the production is in excess of the
..uount required to meet the public
demands prices will soon adjust them
selves to point OF fairness Upon
tie other hand. if production is re
alricted, the public may easily be
willing to pay Tor the privilege OF buy
ing AT high price rather than to do
without the necessary article.
The eucct is to bring about dis
operation OF all related industries. II
prices could be fixed upon all articles
by some law sufficiently comprehen-
slve to Investigate all production
costs, the system might not be so
detrimental.
The Mining Congress Journal re-
CARDS price fixing as usually detri-
mental, always dangerous and utterly
impossible If it is to be made univer-
sal, as it must be to bring about uni
form results The manufacturer who
is required to sell his article at a GER
tain price must be guaranteed that
the expense of operation, the aggre-
gate cost of material, labor and mar
keting must be kept within the sell
ing price fixed by the government au
thorites. If his expenses are in
creased while the outcome remains
stationary, bankruptcy must follow
unless his previous profits have been
uncomfortable. The great element
in the cost of all material and sup
plies is labor. 1t would require some
courage for public man to advocate
that the price OF labor should be fixed
by governmental agencies. Unless
price fixing is made universal no gen
eral GOOD can result. 1t is of no ad-
vantage that a laborers wages shall
be increased from "a to Sc unless the
So will buy more of living necessities
than the 81 wage permitted. II is of
no advantage to the public to fix the
price of manufactured product be-
low its cost, because scarcity Is a
necessary result, with its resultant in.
creased prices or perhaps worse, an
rutir, impossibility to get the article.