Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-02-08
PRICE PLAN IS TO
INSURE INDUSTRY
Proposed StabiIizing Com
mission to Keep Wheels of
Business Turning.
cIipMlTTEn tn ppEclnENT
SUBMITTED TO PRESIDENT

Industries will be kept running and
unemployment avoided during the pc
Rod of readjustment from war to peace
if the plan outlined at a conference of
cabinet officers and Industrial leaders
here yesterday is carried out.
The plan is to have commission in
vestigate the cost of production in es-
sentiaI Industries and tffen decide on a
fair price which the government should
pay for the commodities It buys.
Government officials who attended the
conference feel certain that il the gov
ernment sets fair prices for itself such
action will have a tendency to stabilize
the feeling OF confidence they need to
Leep plants going and men employed.
The plan. which was taken up at the
suggestion of Secretary of Commerce
Redfield, has been approved by the
Treasury Department and has been sub
niitted to President Wilson for indorse
ment. His approval by cable is conf
IDENTIFY expected.
Government officials took up the sug-
gestfon promptly, realizing that during
the period of readiustment business men
are inclined to move slowly, which in
turn results in unemployment
To Release Latent Power.
Secretary Redffeld said those at
tending the conference here this week
were convinced that the determining
of fair prices in the semi-official and
cooperative manner proposed would
release latent consuming power
now dormant because consumers are
awaiting price stabilization, and thus
bring about an immediate increase in
production in all lines of business.
Return to pre-war prices is not con-
templated Mr.. Redfield said, nor is it
proposed to use the governments war
powers or to seek legislation from
Congress. The whole plan depends.
entirely upon voluntary cooperation
by all interests involved, it was ex-
planned, and the governments pur-
chasing power would be used only in
carrying out the prices agreed upon.
1t is understood that many heads of
divisions of the War Industries Board,
which dissolved on January I. have
expressed Willingness to serve on the
general committee and that special
subcommittee have been suggested
to make the Investigation in each in
dustry.
at was recognized by the meeting
that considerable amount of un-
employment existed and that with the
return of the troops this unemploy-
ment would tend to increase. 1t was
also recognized that in large meas
ure the Unemployment was seasonal
and due to the impossibility of car
rying out open-air construction IN
certain states at this time of the year.
1t was, however. agreed that sec
ond important cause was the reluct-
ance of buyers to purchase more than
their emergency requirements at the
present level of prices. and it was
felt that determination of u post
war level of prices for basic COM
modities was urgently needed
Price Level Needed
"It was the general opinion. illus
large latent buying power existed
in the country which needed only
satisfactory level of prices to become
effective 1t was pointed out that the
establishment Of satisfactory ieVei
of prices at this time offered par
ticular difficulties, because war prices,
as fixed, are recognized as abnormal;
on the other hand. there is no pros
pect in the immediate future OF the
restoration of pre-war prices. 1T was
felt that wages would remain on a
higher level than before the Euro
pean war and that no readJustmeht
in the true wages of labor as meas
ured by purchasing power shouia De
the cost of living is reduced labor
would readily agree to the CORE
spending adjustments in money
wages.
"if events are left to take the nat
ural course, the establishment of post
war prices would probably be dlHi-
cult and protracted matter since
prices of one commodity aHect otnss
commodities and producers would
wait for one another to take ] ane frse
step. Such a course OF procedure
would involve much unempioyneht
and a loss to both labor and capitai.
Voluntary Cooperation Required.
'It was the sense of the meeting thaf
the fine spirit of voluntary co-opefa-
ton in industry which had proved
such a yaluabl factor in the cohduct
Of the war should be avahed OF 70
ease and expedite the processes OF re-
adjustment and that the nianulac-
turers of the country would De Will,
ing to take the first ster. AI.er ~ q I1ll
CONTINUED on Fifteenth Page.1