Evening journal., 1919-02-08
u. S. WILL FORCE
PRICES TO NORMAL
Federal Board Will Halt
Threatened Stagnation
of Industry
ACT AT ONCE is
GOVERNMENT PLAN

and Industry lmmed ately has been de-
clded on by government officials here.
The putting into effecl OF this policy
wh ch Is a mod flcation 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 Redneld yesterday
said that Pres dent Wilson had been
asked TO name q comm ttee which VIII
In practical effect be a peace" or re
construction industries board" 10 tak1
charge OF the situation and break
threatened business stagnst.on or lull
In many ! nes and 10 restore produc-
tiVlty and the contentment which goes
With II 10 place 9f The present unrest
and uncertainty.
The ilgst. consideration Is the -estora-
ton OF prices. officials. business lead
ers, 1nanoers and others consulted
agree the halt following the war is
more largely due TO price uncerta MY
than 10 any Other cause. The building
boom has not msterlallzec. manufaetur-
/ ing Is not gong 10 ward because Of
uncertainty Of raw material prices and
retailers and consumers are buying
cautiously and running on scant stocks
/ because OF The same uncertainty. II Is
/ hoped 10 bring prices 10 pO nt ap-
proved by the government. by labor and
I by industry, and one that can be re-
sarded as sufficiently low and stable 10
encourage buying
Secretary Redneld who Is responsible
for the new policy or economic pro-
gram. explained the government Is
taking steps 10 reduce prices generally
al this time, hoping 10 avoid a threat
ened general business stagnation. Tn
employment, he said. was constantly
increasing. The new policy VIII fur
nlsh, II Is expected, well established
markets for all supplies. bringing 4
demand that Will set Industries going
aga n at full speed. Labor would be
employed and the crisis facing the
country would pass.
The prog am was formulated at con-
ferences OF cabinet members and other
offlcials called by Secretary Redfeld |
All independent government agencies
were represented, and many OF them
were men who served the War Indus
tries Board, includ'n bankers, indus
trial leaders and labor men The con-
clusions reached were briefly:
"That Il Is highly desirable 10 take
steps 10 reduce the pr ces OF all base
commodities now abnormally high to
their proper levels. That a large latent
buying power exists In the country
which needs only a fair readiustmeni
OF prices 10 become active and eN TO-
tive. That Il is necessary In consider
ing the readjustment OF prices OF ma
terias 10 have due regard for the ne
cessity OF ma ntainng a Just and prop
er wage scale. That there Is no pros
pect OF the restoration OF the war
prices Immediately and that prices OF
everything will remain higher than IN
pre-yvar days. That the spirit OF volun /
tary cooperation In industry should |
be availed OF and should be a valuable
factor In expedltng the processes Of
Industrial readiustnent. That time Is
he very essence OF handling the prob
lem and the situation requires the ut
most speed"
u was determined therefore 10 seek
approval Of the President in the ap-
polntment Of the proposed committee
which can serve as the connecting Ink
between Industry labor and the Sov- !
e nment. and Il Is expected. VII, be
able 10 coordinate the interests and
affairs OF the three in solving the pres I
ent problem and remedying the acute
industrial situation.
The committee VIII call into confer
ence frequently. comm ttees represent
ing all basic commodities Among the
O ST OF these to be called in will be
steel, lumber. concrete, cement. brick
and other building mater ais S,mults- !
neously representatives OF the textile
industry will be conferred with IN de-
termlning new prices for their goods ;
II Is evident, according 10 officials tha.
all industry will be told latly 10 lay (
lis cards on the table Labor Will be
asked TO do the same Government Of
flc'als acting from an unbiased stand I
Will seek TO bring about the under
standing which it S felt S so sore
needed to stave on an impending cris' S.
officials believe While labor Is stn
demand ng higher wages II win 20
half way with the prices OF the things
II must buy scaled down. II Is not
contemplated now. however, 10 attempt
a,s-adical reduction In wages. II wages
are reduced at ALL officials say they
VIII adhere strictly TO a product on cost
basis--wages and selling prices being
Clipped simultaneously. In many ser
tions, Il Is pointed out. big industries
have announced heir intention or cut
ting Their prices even though the loss
is heavy. They believe. Secretary Red
field said, only through loss at this
time can they clea- the way for N
business expansion which they must
have TO re-estabish capacity operation
Of their various plants.
If events are left 10 take their natur-
II course, Secretary Redfeld SAID, tho
Of post war prices would
be a p-otracted and d flcult
natter. This would be true. since
'rices Of one commodity AFFECT 9th r
commodities. and one producer would
e inclined to wait for another pro-
ucer OF another commodity to take the
rst step. Such 8 course he argued.
,ould be expensive and would result
D great losses TO labor and capital.
Salient points in the problem which
the nation, Secretary Redneld
as follows:
Industries are not -esuming product +,
ION In full volume because Of lack Of :
ouyers' consumers are not buy ne ex-
-sps LOT immediate needs or emergency
steh,a ttea ehents because Of high and I'M
the L.. prices. The effect OF the war on (
ed so Vi supply and demand uproot- o
comnr,a,,ns any definite basis FOR 81
flatea hon hs,'o OF prices: prices are in a.
tenanoe nr ono me poss.b llty ~ naln-
hus,no upon the scale of No.. 49, n
1 portionatsir nave advanced i,sn-',- -
~ t'aona'ely, some show,,s ulspro- "
are onIx, so :" per cent. while o,s's y