The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-08-04
OFFICIALS Think
HIGH PRICES CAN
BEFORCEDD DOWN
Government Believes Artifi-
Cial and Psychological
Causes May Be Removed by
a Publicity Campaign. d
BY DAVID LAWRENCE.
The News SeImltar's Special Core
spondent.

WASHINGTON, Aug. 4.--Something
more than a passing enthusiasm Is be-
Ing bestowed by the administration on
the reducing Of the cost OF living. White
House officials preferred, they said, not
TO make promises or predictions OF Just
What could be done on this comp X
problem OF economics, because It was
necessary TO tread cautiously yet with
sure step. also II is Vital to get all the
branches and departments OF the gov
eminent to work in coordination. The
hasco OF the unofficial price regulation
board, headed by George N. Peck, has
not been forgotten.
There seems to be a disposition to be-
heve thus far that the remedy lies In
the hands OF the executive branch of
the government though congress may be
asked to take a hand. too.
The situation Is not one that has just
recently developed, but the agitation
hAs become aeute, and judging by tile
amount OF time the administration is
devotink to II, the league of nations
controversy may yet be sldetracked
while the president delves into the
problem that is touching the house
holders 20 vitality.
1t is too early to forecast the RENEE
dial measures which viii be taken, but
OlllNialh hDHhh III determined ldSIlOn
about some fundamentals which tells at
least which way the wind Is blowing.
First and foremost is profiteering.
Government officials are positive II Is
proceeding to scandalous depths. The
arm of the law ean BIO and will be
placed upon combinations engaged in
keeping prices at fixed levels. Second,
there Is an element in the government
which is convinced that high prices are
ln VfrAIWr Nha sARsVI ~ ka-nkIa11-t.Ul faa
tors. Believing that there is an abnor-
NAL demand, everybody has begun ask
ing higher prices than articles have
been really worth in a free market.
Nobody has been able 70 fathom the
true extent Of the European demand be-
cause OF chaotic conditions, but the be-
lief has been widespread that Europe
would buy anything and everything and
at any price, All along the line from
producer to consumer there has been a
consistent belief that price levels are
either justified by present conditions or
will soar ven higher,
The remedy. suggested for this phase
Is a revelation Of facts concerning the
European demand and q knowledge
OF justice how much OF a surplus is
Reliable, The laws of supply and de-
mand would then operate.
World Credit Factor.
Third, the status OF world credit is
an available factor. Europe has been
N1uying largely with funds borrowed
from America and paying the high
prices asked by American producers.
BY furnishing large sums Of money the
United States has herself helped TO
stimulate European purchases at high
prices, Although the general impression
Is that the Washington government has
stopped lending money to Europe, 1t is
q fact that about 50, $50, 900, 900 has been
loaned by us to the entente govern
ments since the armistice and authority
to lend $500, 000, 900 more still exists and
probably will be used up to pay commit
ments already made. 1t is also a sig
nificant fact that not one of the Euro
pean governments today has a high
| commissioner here asking for money,
II European credit is as badly off as
some returning travellers say 1t. Is, there
many be some activity here on the par
OF tho diplomatic representatives Of for
eign governments. 1t is confidently
predicted by men familiar with the
phrase Of our government finances that
the European governments will COM
into the market for private loans soor
with much smaller quantities Of bonds
than had been believed.
The American government will co
operate in every way possible TO sta
bilize international credit. but tn,
day OF government loans Is passing