The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-02-08
Us. TO FORCE
PRICES BACK TO
NORMAL LEVEL
Federal Board Will Halt
Threatened StagnatiOn
of Industry.
ACT AT ONCE, Is PLAN
Idleness Increasing to an
Alarming Extent, Red
field Warns.
WILSON'S WORD AWAITED
Capital, Labor and Manufac-
turers Will Be Asked to
Make Concessions.
WILSON'S WORD AWAITED
Special Despatch TO Tue suS.

Special Despatch 10 TIE SuS.
WASHINGTON, Feb. IA new and far
reaching economic policy for the
United States designed TO bring prices
10 a normal level and restore commerce
and industry Immediately has been de-
Cded on by Government officials here.
The putting into effect of this policy,
which is a modification of war time
control to meet problems Of transition,
waits only on action by the President.
In announcing this new plan Secre-
tary OF Commerce Redfield to-day said
that President Wilson had been asked
TO name a committee which will in
practical effect be a peace" or re
construction industries board" to take
charge OF the situation and break
threatened business stagnation or luil
in many lines and to restore produce
tiv!ty and the contentment which goes
with II in place of the present unrest
and uncertainty.
Restoration OF Prices.
rhs first consideration is the restora-
ton Of prices. Officials. business lead
ers. fnanciers and others consulted agree
the halt following the war is more
largely due to price uncertainty than to
any other cause. The building boom
has not materialized, manufacturing is
not going forward because OF uncer-
tainty OF raw material prices. and re-
'ailers and consumers are buying eau
Iiously and running on scant stocks be-
'ause OF the same uncertainty. 1t is
hoped to bring prices 70 a point APP
r,oved by the Government. by labor and
by Industry, and one that can be re-
Earded as sufficiently low and stable to
encourage buying.
Secretary Redfeld, who Is responsible
for the new policy or economic pro-
Eramne. explained the Government Is
taking steps TO reduce prices generally
at this time. hoping to avoid a threat
ened general business stasnation. I'm
employment. he said. was constantly in
ureasing. The new policy will furnish
Il Is expected, we'll established markets
for all supplies. bringing a demand that
viii set industries going again at full
speed. Labor would be employed and
the crisis facing the country would pass
Cabinet Aid. Conference. 700
The programme was formulated at
conferences of Cabinet members and
ether officials called by Secretary Red
field. All independent Government agen-
Ces were represented. and many Of them
were men who served the War Indus
tries Board. including bankers. indus
trial leaders and labor men. The con-
illusions reached were briefly:
THAT II is highly desirable to take
steps to reduce the prices of all basic
commodities now abnormally high to
their proper levels. That a large latent
buying power exists in the country which
needs only fair readjustnent OF prices
10 become active and effective. That II
Is necessary in considering the readjust-
iuent Of prices OF materials to have<rlue
regard for the necessity Of maintaining
= just and proper wage scale. That
there is no prospect of the restoration n.
pre-war prices Immediately and that
prices Of every thing will remain higher
than in pre-war days. That the spirit
Of voluntary cooperation in industry
should be awaited OF and should &c a val
liable factor in expediting the processes
Of Industrial readustment. That time is
the very essence Of handling the problem
end the situation requires the utmost
speed"
Wilson'S Approval Asked.
II was determined therefore to seek
approval OF the President in the ap-
po.ntment OF the proposed committee
which can serve as the connecting link
between industry. labor and the Govern
,rent and, it is expected, will be able to
coordinate the interests and efforts OF
The three in solving the present problem
end renedying the acute industrial stu
alton.
The committee will call into confer
onco frequently committees representing
I'll basic commodities Among the first
a. these to be called in will be steel,
lumber, concrete. cement, brick and
h,t1A iaI=
ous.y representatives OF the textile indus
'rv will be conferred with in determin-
:g new prices for their goods. 1t Is
evident. according to officials. that all
Industry will be told flatly TO lay its
'arda on the table. Labor will be asked
N do the same. Government officials
acting from an unbiased stand will seek
% bring about the understanding which
T. Is felt Is so sorely needed TO stave of
en- Impending crisis.
Call Made on Labor.
Officials believe while labor is still
Demanding higher wages it will so half
way with the prices of the things It
must buy scaled down. 1t is not con-
temp!ated now, however, to attempt a
radical reduction IN wages. II wages
Rre reduced at all, officials say they
VIII adhere strictly to a production cost
bHslS--wageS and selling prices being
ca'pped simultaneously. In many sec
lions, II was pointed out. big industries
fave announced their intention of cutting
'"er prices, even though the loss is
Iedyy. They believe, Secretary Red
i+d said, only through a loss at this
Time can they clear the way for the
business expansion which they must have
TO reestabiish capacity operation of. their
various plants.
II events are left to take their natural
course. Secretary Redfield said the es.
Enlistment Of post war prices would
probably be protracted and difficult
matter. This would be true. since prices
c' one commodity affect other commod-
Tues, and one producer would be in
'Ined to wait for another producer of
smother commodity to take the first step.
such course he argued, would be ex-
eNas'vc and would result in great losses
70 labor and capital.
Salient Points in Problem.
Halient points In the problem which
oohtronts the nation Secretary Redfield
outlined as follows:
Industries are not resumlng produce