The daily banner. (Cambridge, Md.) 1897-2008, 1920-02-28
BARuCH PREDICTS
DROP IN PRICES
Believes Top Production Soon
viii Come. 80
SAYS PROFITEERS WILL DUCK
Believes Government Fixing Prices OF
Raw Materials Prevented the Ma
ton Running Wild With Greed.

ton Running Wild With Greed.
Washington, Feb. 29.-Bernard N.
Baruch told j house war investigating
committee that except for government
fixing of raw material prices during
the war. only the shame of producers
would have limited their rise and that
the morale of the nation would have
broken under Il riot Of greed.
In the course of a five-hour eXamin-
alton, Mr.. Baruch gave a tirst-hand
account of his services as chairman
of the war industries board and as
member of the council Of national
defense and the American economic
mission at the peace conference.
Throughout the long ordeal, with
Chairman Graham trying to fathom
his relations with the president and
his association with wall street In
terests," Mr.. Baruch never lost his
temper or his smile.
Out Of his experience with Indus
trial problems, Mr.. Baruch offered the
comforting hope that top production
soon would come, with resultant
fall in prices. But there would be the
utmost decentralization, he commended,
had the government failed to take
hold and fix prices in Wild scramble
Of world.buying.
"When the hoarder and proftesr
see great production in sisht-and
they will be the first to see it-they
will get from under" he declared.
In questions about Mr.. Baruch's mis-
sion to the peace conferences, Chair
man Graham failed to show any evil
dence of a rupture between the presi-
dent and the witness, The latter declar-
ing that if Mr.. Wilson found fault
with his work, "he was kind enough
not to say So" He added that the
economic policy, as laid down by him,
was approved by the president and the
"big four"
Mr.. Baruch smilingly defended him
self against many charges" includ-
ing establishment Of wartime censor
ship, daylight saving and prohibition.
Once he was asked who suggested
Herbert Hoover for food administra-
tor.
Il could not say any more than ]
could say who It was that first named
him as a presidential candidate" he
replied, and the inquiry quickly turned
to other subjects.
Long before the United States got
into the war, Mr.. Baruch testified,
he told President Wilson there was
no escape, at the same time urging
mobilization of the nations resources.
He could not remember, he said, what
opinion the president had expressed
n that question.
The zenith of non-production has
been reached, unless there Is a cata-
clysm, some act of Providence or I'M
desirable government action" in the
opinion of Baruch. He said there had
been some LEI down in the desire to
work, but that this was being done
away with
"When We get normal transporta-
ton on land and sea-" he said, prices
of necessities of life unquestionably
will come down."
Mr.. Baruch was before the commit
tee to testify as to the nitrate situa.
ton, but his eXaminat ton covered q
vide range. He told of the work Of
the war industries board in organizing
industry during the war, and frankly
admitted that a. that time he ''probab-
ly had more power than any other
man."
Mr.. Baruch was asked if the rail-
roads were taken over on his advice.
NO" he replied. 1T was brought
. the attention of the war Industries
board, however, that the railroads
were not functioning. There was diff
ficulty in getting money and danger
Of breakdown Of the whole trans
portarion machinery. I approved of
the recommendation that the govern
ment would have - take control of
the roads or furnish money for their
continued operation. l don't think the
people realize the importance of the
railroads in wartime. If they had
ceased TO function, it would have been
GOOD night"