The sun., 1919-03-10
LIVING COST FIRST
WILL Be REDUCED
Organization of Industrial
Board Completed and
Plans Announced.

WARRINGTON. March s.--Completior
of the personnel of the Industrial Board
OF the Department of Commerce
together with the plans OF the board for
fastening the return OF prices and wages
to normal level was announced to-day
through the Council of National Defence
Associated with George y Peek OF
Moline, ILL.,. a former member of the War
Industries Board, as chairman OF the
new Organization, are Samuel P. Bush OF
Columbus, Ohio; Anthony Caminetti
Commissioner OF immigration: Thomas
X. Glenn of Atlanta. Ga, George r
James of Memphis. Tenn. T. C. Powell
of Cincinnati and william VI. Ritter OF
West Virginia.
The chief purpose OF the new board
It was announced, Is to bring about the
operation of the laws OF supply and de-
mand, interfered with by the process OF
war. To this end conferences will be
held with representatives of the chief
industries ito decide on prices to be
offered TO the nation as the govern
mentally approved judgment on a price
scale low enough to encourage buying
and the resumption of normal activities. "
LAS soon as a stable and wholesome
scale Of prices is achieved" said the
announcement, "the cost Of living will
have so far been reduced as to create
automatically reductions in the price OF
labor without interfering with Ameri'
can standards and ideals for the treat
ment and living conditions of labor, and
thus the last initiating element will have
been withdrawn from prices,
1T is believed that industry will agree
that the cost Of living must be substan-
TALLY reduced before labor should be
asked to accept lower wages, and thus
industry should stand the first shock OF
readjustment.
Basic commodities. such as steel
building materials. textiles and food, will
be considered first and brought TO sta
Bile basis. The governmental policy. as
expressed by the bill to authorize pur-
chase by the Government OF wheat az
the guaranteed price and resale OF 1t at
the world price. IL to assist IN bringing
prices of basic commodities to normality
by bringing down the cost of living. II
is hoped that these steps alone will au-
toma tica!ly operate to reduce the prices
OF fabricated articles. II they do not do
so in any particular case the industry
affected will be invited into conference.
THE assurance TO the country of a
market stabilized at the lowest reason
ably expected level will loosen such a
| food of buying for the recreation OF
stocks the making up OF arrears in the
building programme, the feeding o!
needs long starved by economy and the
invasion Of world markets, as may p md
| unpre cedented in this country. From
the stable level thus reached by coop
Grafton, We may expect healthy ano
normal conditions created by the COM
plete and unhampered operation OF the
law OF supply and demand"
| In reply TO the objection that a gen.
eral reduction in selling prices now will
force industry and commerce to take a
| loss on products purchased at war
prices. the boards announcement said
the losses under the proposed plan
would be less than II industry were re.
quired 10 await a natural readjustment
with It's consequent long period OF stag
nation.
The normal operation OF the law OF
supply and demand" said the statement
cannot cure what it did not cause. frst
because It cannot operate until buying
| begins. and, second, because buying can
not begin until we have more normal
stable and homogeneous market"