The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1919-08-14

high level and never will return to
the old basis despite deflation and
all other methods government can
adopt to reduce prices.
Commercially Russia has been
ruined and must start all over again
but there is no question OF ultim-
ate insolvency. No nation has SUI
,perior natural resources. Given a
stable government and secure trade
conditions Russia could recover more
quickly than any other nation ex-
icept for one factor--lack OF business
liability.
There is no danger that we shall
come to the Russian condition OF
commercial debasement by the pro-
cess of making our unsecured curren-
Icy worthless, but there is a period of
deflation. It must be so gradual that
business will not be broken by the
shock of landing In fact the lllu-
sion must be kept up that there is
II be no landing. The dropping down
must be so easy and pleasant that
business will not take alarm and
jump overheard in a panic.
High prices stimulate production,
low prices discourage production. At
time when production throughout
the world is reduced as a result OF
one big war which has ended and
twenty-one little wars which are in
progress the prime necessity is in
crease production. We must take
this necessity into account wheney-
er we are devising plans to lower
prices. What We really wish to ac-
complish is to put an end to profit
eerlng and to reduce the costs OF
production so that OF war.
We can. perhaps, eliminate profit.
eerlng by stringent laws. but we can.
not reduce prices by decreasing pro.
duction. Here is a dilemma which
will create much pessimism. How
can we increase production at the
same time that We are offering low
er prices? During the war produc
ton was stimulated by increasini
prices. And now we are hoping tc
keep production up to the high leve
resulting from stimulation and ye'
lower prices.
Those who have seen the packin,
trust and other combines set asid,
|, the law Of supply and demand thinl
that the government can easily solvs
this problem. It trusts can obtair
high prices whether supply be great
err or less, why cannot the govern
men lower prices no matter wha
the supply or the demand?
| The unya,,, ~, ant ,,,,.t JaoI ,vitl
the production OF raw materials. will
the foodstuffs as they come from the
ground. The trusts, for the mos
part, are dealing with manufactured
products. The packers, for exam
pie, pay a low price for beef on thu
hoof and obtain a high price FOL
beef on the block. The inflated ma
ture OF the packers prices may b'
realized when the simple threat Of
high cost of living laws reduces the
price OF pork s1.75 barrel within
Few hours in the speculative mar
kets.
The government must concern It.
self with stimulating the production
OF grain and livestock. Phat was
the governments task during the
war. 1t accomplished II with ven
: geance. Prices were raised to such
an extent that all producers Of raw
and manufactured materials became
Iprofiteers. The excuse was that
there was no other way. We had tC
win the war. Now we must pay the
price.
! Our big problem is to get ourselves
out OF our flying machines in safety
Senator Reed tells us that we
ought not to keep on supplying Eur
"A - oaa,ns God ~,