Evening star., 1919-03-23
AND PUBLIC
IN NEW RELATIONSHIP
Government, Instead of Being Suspicious
Policeman, Plays Role of Friend
and Adviser. -

| continue to hold it, must lower IL
| gradually or must drop it. Business
| hhaliy decided that the process of
gradual lowering would leave 1t with
tewer painful bruises
acceptance of the program OF
price determination and stabiliza-
ton through instrumentality Of the
| industrial board is not yet unani-
nous. but there has been such a lining
up OF the more important producers
that the others must come in. or of
tnelr own initiative make such con-
I cessions as will result In stable and
homogeneous market. Any producer
VINO tailed to do either-provided his
commodity was necessary to the gen.
eral resumption Of business-would
nave to answer for his,failure at the
par OF public opinion. The industrial
board has means of its own of as
certaining and publishing values. and
Will not hesitate to make use of
them where it IS apparent there is
selnsh obstruction of the general pro-
gram.
Better Permanent Relations.
1t is true that the industrial board
Is applying an abnormal remedy to
cure an abnormal economic situation.
out there is growing conviction that out
OF its undertaking there will come per.
| manent betterment in the relation he.
tween industry and the public At these
hearings the interests Of capital and
management, of labor and of the ul.
inmate consumer are considered fairly
and impartially. There has been no
showing Of disposition by capital
to advantage itself at the expense
either Of labor or of the public. And.
what possibly is even more signifi-
can't big business has shown no
disposition to deny little business
right to live. The only party in in
terest. who has failed to get sympa-
shetic consideration is inefficient bust.
ness. There has been unanimity I'm
support Of Secretary Redfield's decla-
ration that a business which cannot
serve the public efficiently has for
reited its right to existence, that I'm
the strenuous days ahead there ia no
place for it in the American economic
structure.
As the possibilities of the Redfield
plan unfold themselves leaders in
industrial lines are asking this ques-
ton OF each other: II It is possible.
to meet given situation for us Ia
get together with an sgs6cy Of the
governments and agree openly on
what fs right and fair, why is it not
possible as q permanent American in.
dustrial policy?
Answer Being Formulated.
/ 1t is the belief of men in attendance
at the hearings before the Industrial
board that an answer to the question
is being formulated day by day. 1t
has been driven home that the pres
aent stagnation is due almost solely to
lack OF confidence. II publicity-open
covenants openly arrived at-wflf
serve to restore the confidence now
lacking. 1t is asked, why would not
continuation Of publicity serve to
continue confidence? And if the gov.
ernment, to meet an emergency of
reconstruction. can provide an instru-
mentality to assist in arriving at these
open covenants, why cannot the gov.
ernment play the role of impartial
arbiter as part of its regular job?
The war has taught lot of lessons.
and good many hard-headed bust.
ness men are bG ginning to think this
may be one of them. 1s--
But that, of course, is looking into
the future. What business wants to
know now is whether the industrial
board can help it out of the hole I'm
which it finds itself today-whether
it can provide q bridge for safe passage
from the artificial industry of war to
the normal industry of peace. That
is all the industrial board has set
out to do. and it has no plans beyond
accomplishing it.
Boards View of Conditions.
The existing condition, as summed
up by Chairman George N. Peek and
his associates on the board, is that.
although commercial stocks are de.
pleted, although there issplenty of
money, although building and con-
struction are several years in arrears
of necessity. and although a long Pc
riod Of enforced economy is greatly
relieved and markets are in prospect
in all parts of the world. still buying
is timid and has been decreased in
money also is timid and re-
mains in bank, some mills and fac
tories are idle with few running full
time, construction of public and pri-
vat works has not begun and unem-
ployment is spreading. ~
In explanation of the causes Lead.
ing to this situation the board in a
formal statement says:
Study Of the Causes.
war required production abnor-
mally increased generally and abor-
lively increased respecting certain
specially needed for war.
This irregular increase was secured
by enormously increased prices. Cos~
sequently the sudden termination of
war left a highly inflated and very
irregular market, which is generally.
far above what the peace demand will
support and which is not homogene-
ous,. many prices being abortiveiy
above their place in the normal pat
tern.
This situation was originally cre-:
ated by the abnormal operation of the.
law of supply and demand, stimulated
by the great need of the European