New-York tribune., 1919-08-31
Prices
Laid tOShOrt
Production
Defence Council Reports
Curtailment, Hoarding
and Profiteering Are
Evils To Be Overcome
Ne1D York Tribune
Washington Rurecu

WASHINGTON. Aug. 30.-The Coun-
Gil of National Defence, through it's
director, Grosvenor B. Clarkson, to-day
made public digest of its report on
the high cost of living which is being
transmitted TO President Wilson and
the members of Congress through Sec
retary Of War Baker chairman of the
council.
The findings Of the council indicate
that the high cost of living is prmar-
lily due to curtailment in the produc
ton Of nearly all commodities except
raw food products, to boarding of stor-
age food products, to profiteering,
conscious and unconscious, and to inha-
tion of circulating credit.
In the opinion Of the council the
situation may be most advantage ously
r'et by stimulated production. by the
repression of boarding and profteer-
ing, by the improvement and standard
ization Of methods and facilities for
distributing and marketing goods, and
by the perfecting OF means Of keeping
the nation informed regarding prob
able national requirements and current
production and stocks.
The findings emphasize tile fact that
high standards Of living cannot be
malntained upon any basis of reduced
production.
The report assailed producers of
woollen and cotton textiles, boot. and
shoes for deliberately curtailng their
output after the signing of the arms-
tice in order to force extortionate
prices, and pointed out that this sor.
of profteering had not only helped to
raise the cost of living, but had in
creased the number of unemployed and
lowered the nations capacity to
produce
Analysis of Problem
The report says, in part:
"The problem Of the high cost of
living is so inter-related with other re-
construction problems that the opening
of this problem is tantamount to open
ing up the question Of reconstruction
practically in its entirety.
IAN analysis of the high cost of liv-
ing problem brings out the following
facts and principles as constituting
the essence of the situation:
Il. The only complaints Of high
arc those which are based upon in
ability of present income 20 maintain
previous or reasonable standards of
living at present prices.
"2. Americas industrial and eco
nomic achievements during the war; not
withstanding depleted man power and
diversion of productive effort to war
purposes, demonstrate the ample abi-
ity of the nation to sustain it's popu-
lation according to a standard of liv-
ing equal to or above standards of liv
ing the wer.
Evidence of Curtailment
"3. The fundamental basis for the
maintenance of national standards OF
living is adequate production, ecbnom-
ical distribution and fair apportion-
ment among the various economic
groups which constitute our society
With the exception of agricultural az
tivity, production since the armistice
has shown evidence of curtalment, and
has in general been abnormally low
Normal consumption cannot continue
unless an adequate rate of production
is maintained.
"a. Food production and the facil:-
ties for food production were improved
rather than injured during the war
Moreover, the programme with respect
to food production since the signing IF
the armistice has been one of vigorous
expansion of the means of providing
raw food products.
"The number of cattle slaughtered in
the period January to May, 1919, was
3,803,0O0, as against 4,204.0OO for the
corresponding period Of 1918. though
the national reserve of cattle on farms
had increased during the war The sit
uaton in regard to swine is similar.
Less Civilian Clothing
"5. The production Of civilian cloth
and clothing has suffered heavy cur
tailment since the signing of the arm
stice
Boot and shoe production for civil
ian use has likewise undergone extreme
curtailment since the signing of the
armistice.
Housing facilities, due to curtail-
ment, for many months following the
armistice, of the production of building
material and of building construction,
is still far below normal. Rents CON
tinue to rise.
"e. The first half Of 1919 shows
diminished production of raw ma
terials and subnormal construction of
new capital and thus indicates failure
to utilize an adequate proportion Of
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