Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1919-08-09

may be changed or may be held long
in allegiance or may not be enforced
because of divisions of opinion
among the powers associated against
Germany, it is. idle to look for per-
manent relief.
But what we can do we should do,
and should do at once. And there
is a great deal that we can do, pro-
visional though it be. Wheat ship
ments and cred,ts to facilitate the
purchase of Our wheat can. ard will
be limited and controlled in suck a
way as not to raise, but rather to
lower the price of flour here. The
government has the power, within
certain limits, 10 regulate that. W.
cannot deny wheat to foreign peo-
Piles who are in dire need of it, and
we do not wish to do so; but for
tunately, though the wheat crop is
not what we hoped it would be, it
is abundant, if handled with provi-
dent care. The price of wheat is
lower in the United States than in
Europe, and can, with proper man
be kept so.
Surplus Stocks Sold.
By way of immediate relief, sur
plus stocks of both food and cloth
ing in the hands of the government
will be sold, and, of course, sold at
prices at which there is no profit
And by way of a more permanent
correction of prices, surplus stocks
in private hands will be drawn out
of storage and put upon the market
Fortunately, under the terms of the
food control act, the boarding Of
foodstuffs can be checked and pre-
vented; and they will be, with the
greatest energy. Foodstuffs can be
drawn out of storage and sold by
legal action which the Department
of Justice will institute wherever
necessary; but as soon as the situa-
ton is systema tically dealt with it
is not likely that the courts will often
have to be resorted to. Much Of
the accommodating of stocks has no
doubt been due to the sort of specu-
lation which always results from un-
certainty. Great SURPRISES were ac-
cumulated because it was impossible
to foresec what the market would
disclose and dealers were deter
mined to be ready for whatever
might happen, as we'll as eager to
reap the full advantage of rising
prices. They will now see the dis
as we'll as the danger, of
holding off from the new process OF
Significant Facts Disclosed.
Some very interesting and sig
nificant facts with regard to stocks
on hand and the rise of prices in
the face of abundance have been dis
closed by the inquiries of the De-
partment of Agriculture, the De-
partment of Labor and the federal
trade commission. They seem to
Justify the statement that in the
case of many necessary commodities
effective means have been found to
prevent the normal operation of the
law of supply and demand. Disre-
earding the surplus stocks in the
hands of the government, there
was greater supply of foodstuffs
in this country on June | of this
year than at the same date last
year. In jthe combined total of
of the most important foods
in dry and cold storage the excess
is quite 10 per cent. And yet prices
have risen. The supply of fresh
eggs on hand in June of this year,
for example, was greater by nearly
10 per cent than the supply on hand
at the same time last year and yet
the wholesale price was DO cents
dozen, as against 80 cents year
ago. The stock of frozen fowls had
increased more than 2o8 per cent,
and yet the price had risen also,
from "a ~ cents per pound to
81 IL cents. The supply of cream
cry butter had increased 12o per
cent, and the price from al cents to
53 cents per pound. The supply of
salt beef had been augmented per
cent and the price had gone up from
s34 a barrel to $50 a barrel. Canned
corn had increased in stock nearly
y per cent and had remained sub
the same in price. In
:ew foodstuffs the prices had de-
;lined, but in nothing like the pro-
portion in which the supply had in
creased. For example, the stock of
canned tomatoes had increased lO2
ser cent, and yet the price had de-
;lined Is cents per dozen cans. In
some cases there had been the
Usual result of an increase of price
a decrease of supply, but
n almost every instance the in
;rease of price had been dispropor-
iSnate to the decrease in stock,
Combinations Formed.
The attorney general has been
making a careful study of the situa
ion as a whole and of the laws that
IAN be applied to better it, and is
convinced that under the stimula
ion and temptation of exceptional
combinations of pro-
ulcers and combinations of traders
have been formed for the control of
supplies and prices which are clear
y restraint of trade, and~ against
hese prosecutions will be promptly
instituted and actively pushed which
will in all likelihood have a prompt
corrective effect. There is reason to
believe that the prices of leather, of
:oal, of lumber and of textiles have
been materially affected by forms
If concert and cooperation among
he producers and marketers of
hese and other universally neces-
,ary commodities which it will be
possible to redress. No watchful
IF energetic effort will be spared to
accomplish this necessary result. l
rust that there will not be many
cases in which prosecution will be
necessary. Public action will no
loubt cause many who have, per-