New-York tribune., 1919-08-31
Hish Prices
! Laid to Short
|. Production
Continued from page

.nr productive forces in the prelimi-
..-y processes OF provision to meet
Mture requirements. In fact, due TO
.rs;oess uncertainty and hesitation
'sS tendencies 70 disagreement be-
,.sen productive groups, there ensued
.nsr the armlst;cc disuse OF a
,.-re proportion of Americas pro
a aa.sive capacity. Unless this slump
- PRODUCTION IS atoned for bv con-
.;s.snt future activity, and unless pro-
;.st;ou is constantly maintained on
.n sdeouatc scale. reduced standards
= - living will Become irescapable. re-
urdless of price,
AbnormaIly High Profits
eThe very fact that prices OF
a ss;shed comm odities. consumption
d roods so-csled. have risen % an ex-
8 an out Of proportion 10 the rise in
= nrees OF raw materials and perhaps
~. Of proport Tor 20 the rise in gen
L .rsl wages. indicates that production
n .,r-;ed on under these conditions is.
4 n general, yielding profits abnormal
i i high"
D The councils report points out that
sue importan. factor in the high cost
4 living lies N the mistaken idea
Ast an increase in income, even
dough accompanied by a rea. reduc-
ron IN the amount OF the necessities
4 life produced. should raise the in
] ;iyidua! standard OF living. The re-
q port points out the faliacy of the
d belef of the iHdividua. hat q raise in
Evares or income under present con-
G..ons should alone increase that in
4 divdual's standard OF living.
u The repor, emphasizes the fact that
.he deficiency OF commodities, as com
Euared with the volume o. circulating
and also as compared with liv-
nc requirements, has survived the
iuration of the war, and the only safe
| 3ud practicable method Of efecting
drsdiustment now is BY the practice
Iii genuine economy, by increased pro-
S2ucton Of the things society needs
lad by curtailment in the consumption
IN those luxuries which lArger money
incomes have falsely led US TO believe
&ths. we could afford.
q Credit Reduction Opposed
q The report continues:
q ~. does seem no. safe nor practical
BE 10 initiate read iustmen- OF prices
!, a premature reduction Of credit for
essential purposes. inasmuch as the
srt effect OF contraction OF such credit
.ould be reduced productior-the in
justification o. the fundamental cause
rom which the country now suffers.
On the other hand, i is quite possible
r increased production 10 create such
volume Of commodities and wealth
/. .hat the balance between physical goods
1snd circulating medium VIII be normal.
4 at will no. he overlooked. of course
hat any movement TO radvce prices
,therwise than - the elimination OF
waste, .ho ~esl assion OF rronteering
and tie s,.rU.at-on of production may
ynG 20 briu-- co. as ar indirect cor
sequence, a. .ncreeee o. reduced pro
| iuctiol.
/ sslleo . reduce Is standards OF Nv-
gsng because o inability 70 secure ade-
|zs1ua.e quantities o. the means OF life
|Mhe first matter 20 be investigated is
Mhe question ot the adequacy Of the
M.snerai supply. and the second ques-
II ion sho- ~ addressed 20 tae matter
III the anpo~-loarcea o. --e supply
among :.e var.ous members, groups
,snd c.asscs cl society. I. $ obvious
nat mean ~ Iife canno- be plentiful
miles prod-c. ION is adequate, and
there is. therefore. = plentiful supply
tHA' dt.dJ-c OF 1---N Q.S>l. -D->.
No Serious Food Shortage
8 I'VE passed through the war period
with genera. tendency toward con-
siderable increase N our production Of
foods Also We we're under the neces-
sty o. supp y.ng large quantities Of
.ood 70 our allies; bu- We. neverthe less,
thanks 10 d magnificent. agricultural
programme, cane out OF the war with
out serious shortage OF food s. pply.
"Notvlchsta anding large exports. our
wheat and -four supply is obviously
idequate. while the situation with re-
spect 70 the other cereals is generally
very good
Though the sugar stocks are some
shat low il the United States, the
'uture IS normally provided for.
~ America emerged from the war pro-
tucing meat at rate far above pre-
Tar figures. and yet possesses in re-
serve larger number of animals on
@ine farms than we had before the
Naeavy war drafts upon our supplies
a began.
b The report of goods in cold storage
M'nows an Increase in the quantity he Id
I'm July 1, 1919, as against the same
M's'e year ago. Taken in connection
MNth the evidence of relatively abuad
Esnt reserves of live animals and large
as'ops for the current year, it would
gIsem that some relief from high prices
81 food should be possible
Present food prices are not to be
z'ccounted for largely on the basis of
aesvy export II is true that food
H. oy comparison, plentiful. But it
also true that money or other cir
sllaung medium is unprecedentedly
@alentiful.
IA Speculation
These conditions are highly favor
s0le to both speculative profiteerine
sna wasteful distribution, through the
H'erVention OF supernumerary middle
men and caterers. It should, however
0e remembered that this is kind OF
ssoilteering which deserves unstintec
praise as compared with that other
species OF profiteering which delib-
,stsseiy reduces output in the expecta-
.s son tnat the extortionate prices which
zoe reduced product will command may
1ofe than make up to the producer OF
.peeulator for the portion OF produc-
Svu Withheld, or the percentage o.
Isa'ued goods condemned to spoil anc
~ lost to the nation.
HI Wool Profiteeriug
10nsider wool, for example. The
nvsV obvious explanation OF the high
sces N OF woollens is the glaring fact
the extreme reduction in outpu,
,,s;l r,.h ensued after the signing of the
aM'stice e,a.ice and the completion Of army
Aarsfs, Aa,r.. which practically ended in Jan
me war came to an end with tn.