The sun., 1919-10-30
y
HOOVER SAYS COST
OF FOOD WILL FALL
Failure of Europe to Buy as
Expected viii Cut Prices,
He Predicts.
VAST SUPPLIES ARE HELD
Spectators Sure to Suffer
Heavy Losses, Administra-
tor Believes.
VAST SUPPLIES, ARE HELD
Special DespatcA to TaE Sex.

Special Despatch to TBE sCx.
/ WASHINGTON, Oct. 29.--Lower food
prices are on the way, Herbert Hoover
predicted before the foreign expendi-
lures subcommittee of the War De-
partment Expenditures Committee to-day.
His belief is not based on governmental
action against profteers, but on the
law OF supply and demand.
Foreign exports Of foodstuffs have
fallen far below expectations despite
general suggestions to the contrary and
a surplus OF from 10000, 900 to co.
600, 900 tons of food will exist In this
| country on the completion OF all the
/ harvests he said. Spectators and ex-
! porters who have been holding large
/ quantities of food for export are re-
/ sponsible for the continuance of high
! prices in this country in spite of large
u crops, Mr.. Hoover said, adding that they
are In line for large losses as result
Wholesale prices already are declining,
rejecting this situation, he pointed out.
The Food Administrator has recently
returned from Europe, where he has
been conducting the American relief
work. He pointed out that Germany
falling below predictions.
In the belief that Germany would
demand huge amount of food large
holdings were purchased for export
there he said, but the nation frightened
Up its belt another notch, maintained its
war ration and waited until it's harvests.
which were satisfactory. relieved the
situation
Explains Sugar Shortage.
Mr. Hoover also discussed the hIeat-
ened sugar shortage In this country. de-
! claring that prohibition Is largely re-
Eponsible for the present scarcity. The
United States sugar equalization board
is planning to ask the President for au-
thority to ration manufacturers OF
candy, soft drinks and the like in order
that the consumers may not be deprived
of their supply. Raw sugar" said Mr..
Hoover, has risen beyond the point
where It can be bought advantageously
for the family.
Prohibition by increasing the sale of
soft drinks and candies has increased
the consumption of sugar In this countyr
$50, 900 tons a year." Mr.. Hoover said
in March 1t seemed as II supplies would
be ample, but wartime prohibition rap
! idly decreased SURPRISES. The available
supplies for November and December
are virtually the largest In history, but
the increased demand probably Will
cause a minor shortage, which might de-
yelop into a famine II the consumers are
not protected. Several years ago the
per capita consumption was seventy
three pounds a year. About year ago
1t was eighty-four, but prohibition has
sent II up to ninety-three."
Continuing his discussion Of the world
food situation and the American eA-
ports Mr.. Hoover said:
MY own view of the situation Is that
there was overexportatiun Of food sup
plies this year. The excess of from
&c. 900, 900 to 100000 900 tons OF food
which we will have at the end OF the
harvests cannot be moved out OF the
country without the establishment OF
credit machinery. Europe's low credit
should work to the benefit OF the people
OF this country by decreasing exports
Large Food stock Here.
1T Is popularity supposed that we over
exported food last year. The facts are
that this is not tue. The stocks of food
in the United States last August were
the largest in our history. Ny belief
Is that speculation rather than any fun
damental reason has caused high prices
There have been two forms Of specu-
Iation. One is the relatively small
amount OF purely vicious speculation IN
food supplies in WHICH men purchased
food and held IL for higher prices The
other is the larger condition ! have re-
ferred to in which exporters OF food
bought UP week after week supplies OF
all kinds in anticipation that after the
srrnistice was signed Germany and
other countries would buy IL.
THE purchases did not materialize
When exports did not move prices be
gan to drop in the wholesale market
though there was little reduction in the
retail price. Still the buying by export
ers went on, for there was a perfect
cloud Of reports from Germany that a
largo food vacuum must be filled. /
was this large buving that forced price:
Up and the failure OF the supplies Il
move caused slight reductions in TIT
Wholesale price This drop will. be
heve continue, and to my mind a heav,
fall In the price Of staples is due.
Another reason for higher prices Il
the habit the American people have &C
quired OF buying expensive things. 1
10 feature of the appalling PSYCHOLOGY
Of the situation
He told the committee Of one instance
where his relief commission desired e
buy at wholesale a large quantity in
expensive shoes for children. The manu-
tacturer informed him that they had
ceased to make that grade OF shoes be
cause there was no market for them.
Mr. Hoover apeared before the com
nlttee 10 deny limitations OF some Rep
resentatives in Congress that by sendint
large quantities OF sugar to Europe TO b,
distributed by the American Relief Mis-
sion he had brought on the threatened
shortage OF sugar here. He claimed tina