Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1919-09-04
H. c. Of |. DUE TO
FOOD SPECULATION
HOover's OpiniOn-Wharves in
North European Ports Over
flowing with FOOdstuffs

Paris. Sept. IA distressingg era of
speculation in foodstuffs In the United
states and throughout the worlds pri-
mary FOOD markets is largely responsible
Tor nigh food costs, in the opinion Of
herbert G. Hoover chairman OF tho
inter-allied relief organization, who, on
the eve OF his departure for the United
States. granted the Associated Press an
Interview to-day
"Wherves and warehouses in northern
European ports are Overlooking 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 Balkan states and Ger
many at high prices, but these states
have only a depreciating local currency.
and many commodities are in danger Of
spelling, az the central European mar
ket for foodstuffs is limited to the ability
Of the peoples to buy on credit"
This years speculations,' Mr.. Hoover
said "are due. in my opinion chiefly
to the belief of food merchants and
manufacturers that when the blockade
was removed there would be an enormous
demand for foodstuffs and other commo-
This speculation was not due to any i'm
portant shortage at present of actual
supply. This speculative fever. which
was not confined to foods. was greatly
stimulated by the long delay in the re-
moval Of the blockade until the peace
treaty was signed at Versailles. There
plenty OF evidence that this was true of
foodstuffs in gutted ports in northern
Europe. where only neutrals have the
means TO buy"
Responding to an inquiry as to how
food speculation could be checked in
America. Mr.. Hoover replied:
Attorney A. Mitchell Palmer is on
the right track when he endeavors to
break down speculation and seeks to
secure powers never possessed by for
mer 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 food of production
OF foodstuffs in the northern hemisphere
and Will again have a great surplus in
the United States. If. in the meantime,
Europe has not found credits to purchase
the coming winters supplies, we are
likely to have a glutt and prices may
rail- 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 past year.
That can be demonstrated by the fact
that we enter new harvest 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
II we are to account for the high price
level on the basis of over-exports, we
should have to find a depletion of our
national stocks"
Mr.. Hoover pointed out that the prob
| lens involved In the speculative wave
were very difficult TO deal with. because
1t was worldwide and not confined ID
the United States.
The law Of supply and demand" hs
continued, lis not working normally and
probably will not for another year.
While prospective food supplies for the
next IL months are about equal to the
apparent unstable political situations a
recurring shortage of shipping, a short
! age Of credit and a combination of either
buyers or selling will tend to create
great speculative waves and may initiate
prices to point uncomfortable to the con-
sumner, or in the reverse situation, unen-
durable to the farmer
We will have large surplus next
year and must have prosperous farm
ing community If we are to have the
world fed in the future and maintain
stability at home and abroad. 1t is my
own view that the situation would never
have been so acute II the blockade had
been removed soon after the armstice
was signed. as was urged by the United
States government"