Evening star., 1919-08-24
Requa Famous Economist Says Americans Do Not Get Best
Although They Spend the Most-Hgh Prices Due to Many
Causes-Toeraton Of Abuses and Ignorance Blamed
for Present Conditions.

1 thiMs it not only desirable, but
highly necessary, and that 1t would
result in much national benefit.
+ II do not claim for this plan that 1t
will be. an>absolute panacea;'it Is or
fered rather with the conviction that
It is far better than any plan follow
ed during the war period ana IN
finitely better than the present CON
dition with its constant tendency To-
ward increasing prices.
Let us begin with the foilowlns
assumptions Of Fundamental prih-
ciples:
"A board of Investigation should DC
created composed of representatives
of the industries under discussion anu
representatives appointed by tne
President. It's functions should oe y
investigate conditions and determine
and announce prioes AS Its iounu"
ton it should adopt these princ'p'es
, ..A-Industtial prices. may be typi-
Fed by a circle that cannot De uea.
ed in Independent ,segments' out ''a'
must be treated as whole as ma
tional thing, If satisfactory results
are to be secured.
'B.-There are certain staples. Oh
which the number must De ue.e
mined after careful nvestisa.'on'
which must be controlled as unit
and which, If so controlled, Will SYM
pathetically affect the balance.
"C.-AfteE the original list OF STA
pie products Is completed adoitiohs
thereto may be made at any time anu
any commodity so listed at once
would become subject to the general
control.
Now. let us assume that the ooaru
has been organized and has met ana
that the selected list OF commodities
has been completed and prices deter
>mined. The next step would oe 10
district the country into zones, the
number to depend upon determina-
tion of the needs. but, in generai. as
illustrating the idea. let US suggest
as central and controlling points:
y X
'Wasl1ington, as headquarters; bos-
ton, New York, Baltimore, Atlanta,
New Orleans and st. Louis In the
first group; Cleveland. Chicago. st.
Paul. Omaha and Denver in the sec
ond group; Dallas, Ell Paso. San Fran
cisco, Seattle and Butte in the third
group.
Then, after the establishment OF
the central and distributing points.
we must determine the wholesale
prices for the products listed, through
study of those prevailing In the three
pre-war years. Prices during 1915.
1916, 1917 and 1918 also would be
found and charted. Having done
this, the figures SO obtained (includ-
ing the price of labor) must be
charted as the normal or 100 per cent
line. and q reasonable differential then
must be determined as between these
Wholesale prices and the retail price
properly to be demanded OF the ul-
innate consumer. Then we should be
prepared to begin our price adjust
ment in each city and each zone.
"No doubt some commodities would
be found much out Of line and SUBJ
ject to immediate correction, but once
H~Vhh6 S0SaUhcHSu tuC' pTOpcT Tcid-
tionship their price would be frozen;
agencies would be established in each
city, the price chart would be set up
and announced and the public would
be urged. ~ voluntary act, to de-
mand from the retail dealer that he
observe and conform to these sched-
uled pricesSe He would comply.
Changes permitted and made effec-
tive by the licensing system would
be promulgated by the central head
quarters in Washington. and when
made would be announced in terms
Of percentage, 20 adjusted as to make
the decline equal. Two per cent on
one commodity might be found to
equal one per. cent, or three or iye
upon another when translated into
terms Of equality Of reduction. Thus.
1t follows that each article would
have to be consldered separately in
the preparation Of . blanket order
covering general alteration Of
prices. All commodities would move
upon q sliding scale and 40 a unit.
IT the plan wosks--and It vii, work
II the public becomes interested and
co-operates--labor will be the direct
and immediate beneficiary. The de.
termination that wages shall be the
last to be readjusted will insure this