The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-09-02
SPECULATION IN
FOODSTuFF HELD
CAUSE OF H. C. l..
Hoover Says Wharves in
Northern European Ports
Are Overlooking With Food
(By Associated Press)


PARIS. Monday, Sept. IA dis
tressing era Of speculation in food
stuffs in the United States and
throughout the worlds primary food
food costs, in the opinion Of Herbert
Hoover, chairman Of the inter-allied
relief organization, who on the eve of
his departure for the United States.
granted The Associated Press an in
! terview today.
Wharves and warehouses in north
ern European ports are overflowing
with foodstuffs, principally meats, fats
and dairy products, sent by merchants
all over the world, Mr.. Hoover said.
These merchants, he declared had
| gambled, on sales in Poland, CZecho-
| Slovakia, the Baltic states, and Ger
many at high prices but these states
have only a deprecated local currency
and many commodities are in danger
| of spelling as the central European
market for foodstufts is limited to
the ability of the peoples to buy on
credit.
This years speculations," Mr.. Hoo
yer said, ARE due, in my opinion
chiefly to the belief of food merchants
and manufacturers than when the
| blockade was removed there would be
| an enormous demand for foodstuffs
J and other commodities in central and
eastern Europe. This speculation was
| not due to any important shortage, at
present of actual supply. This specu-
| lative fever which was not confined
to foods, was greatly stimulated by
the long delay in the removal of the
blockade until the peace treaty was
signed at Versailles. There is plenty
of evidence that this was true Of food
stuffs in glutted ports in northern
Europe, where only neutrals have the
means to buy"
Approves PaImer's Action
Responding to an inquiry as to how
fod speculation could be checked in
| America Mr.. Hoover replied:
! attorney General A. Mitchell Pal
mer is on the right track when he en-
deavors to break down speculation
and seeks to secure powers never
possessed by former administrations
to enable him to accomplish this step.
The situation Is one that may well
| cause anxiety also from another point
| of view. We are now coming into
a flood Of production of foodstuffs,
in the northern hemisphere and will
again have great surplus in the
| United States. If in the meantime,
Europe has not found credits to pur-
chase the coming winters supplies we
are likely to have a glut and prices
may fall below the cost Of production
to American farmers.
The present high prices Of food are
not due to over exports to Europe
from the United States during the
hot hn do, ,ctr tod
by the fact that We enter a new har-
vest with larger stocks of previous
years production than at this time
last year. In fact the stocks Of many
commodities are the largest we ever
had In storage at this season. Yet
prices are very much higher. If We
are to account for the high prices
level on the basis Of over exports we
should have to find a depletion of our
national stocks"
Mr.. Hoover pointed out that the
problems involved in the speculative
wave were very difficult to deal with
because it was world wide and not
confined to the United States.
Sees Large Surplus.
"The law Of supply and demand,
he continued lis not working normally
and probably will not for a year.
While prospective food supplies for
the next IL months are about equal
to the apparent need, unstable polite
al situations, a recurring shortage of
shipping, shortage of credit and a
combination Of either buyers or sell
ers will tend to create great specuia,
tive waves and may initiate prices to
point uncomfortable to the consumer,
or in the reverse situation, unendur-
able to the farmer.
We will have a large surplus next
year and must have q prosperous
farming community if we are to have
the world fed in the future and main
tain stability at home and abroad. It
is nv own view that the situation
would not have been so acute if the
blockade had been removed soon after
the armistice was signed as was
urged by the United States govern
ment The speculator would have
had his illusions destroyed last winter
instead of now.
1T could also have been possible to
have prevented great speculation had
We retained an embargo on exports
and thus kept the worlds spectators
puzzled as to the governments action
The rise in foodstuffs, of course, took
place only after the control Of exports
had been removed. On the other hand
. the general demand OF the public
made it impossible to continue the
control of exports as that control
tends to retard the resumption OF
normal economic life.