New-York tribune., 1920-05-25
High Sugar Cost
Laid by Hoover
ToPresident
(continusd from paae ene)

around IL to 13 cents sugar retail in
side of the United States; and it Is my
belief that sugar would have main
tanned that price throughout the year.
Exactly the same situation existed
iii July-August, 1919, as existed in July
August, 1917 and 1918, on which oc-
casion the Cuban crop was purchased
purchase the price of sugar was stabil-
izod. The shortage is no more pro-
found this year than it was in either
one Of the other two years, so that
there is no reason why the operation
that had been successful over two years
should not have been continued the
third year.
Reason for High Price
'I might say that the objection to
that continued operation was the belief
that control Of prices tended to stife
production. To my mind, that is not a
proper criticism, because price Of 6 =
cents for Cuban raws was a price at
which the maximum production, in view
of the tropical labor supply available,
could have been brought forth, and any
increase over that figure would not
bring out any more production because
event, there is an economic illusion
that high prices necessarily stimulate
production.
Sugar itself is fine example Of
that, because sugar at this price will
tend to diminish production. The rea-
son for that lies in the character of
tropical labor, in that it satisfies it's
needs with 8 good deal less effort"
$50 that it is a fair inference and a
reasonable conclusion,' asked Mr.. Bcr-
ger, chat by reason of the failure of
!, 10 hat If
recommended by you and by the Sugar
Equalization Board, the people of this
country are paying 100 per cent more
for sugar than they otherwise would :"
"That is my belief" Mr.. Hoover sadl
Supply Adequate. He Says
From your knowledge of the pres
ent supply of sugar." pressed Mr.. Ber-
ger. "do you think there is enough
sugar to supply the legitimate needs
of the people Of the United States?"
81 do" replied Mr.. Hoover. cap
proxmately 80 or 33 per cent of our
sugar is consumed in luxury trade;
that is, in sweet drinks, candy and
allied trades of that character. If a
reduction could be secured in that
consumption, it is possible that suf-
ficient margin could be had to main
tain the household supply"
Mr.. Hoover was careful to empha size
that he did not believe in direct gov
ernment regulation Of the distribution
of commodities in general as remedy
for the high cost of living, but only
in cases where emergencies exist.
Except for handling few comm obi
ties that can be placed in control with
ease" said Mr.. Hoover, "my belief is
that more can be accomplished through
the control of credit and the reduction
of imitation, through the stimulation
Of production itself and the re-
enlistment Of the public in reduction
of consumption than can be ac-
complished by complete re-
enactment of the war measures, be-
cause legislation practically comes to
that in the end"
Problem of Profiteering
The problem of profiteering, said
Mr.. Hoover, is q problem Of certain
particular commodities.
IL might mention incidentally" he
said, that probably ten or twelve COM
modities will comprise 80 per cent
Of the American food supply from a
nutritlonal point of view; that some
Of those comm odities are more i'm
portant than others, and that if there
existed a profound shortage in one
of those commodities, certainly gov
ernment intervention in my view is de-
sirable.
"My own view is that profiteering
cannot be suppressed by criminal
prosecution; that one must approach
it from the point of view of construc-
tive regulation of trades where it is
necessary"
This brought Mr. Hoover into gen.
eral discussion of the cost Of living.
He read prepared statement giving
his diagnosis of the situation and sug-
gesting remedies. Conditions affect
ing the high cost of living, he said
cannot be cured by economic patent
medicines nor by the extreme applica-
tion of any particular remedy, but re-
quire coordinated policies of readjust-
ment going below the surface of
things. He again emphasized the fulfil
ity of criminal prosecution. "An eco
nomic 1orce cannot be managed by q
policeman" he said.
Causes of Living Cost
Mr.. Hoover said the predominatng
causes of the high cost Of living are
Shortage in commodities due to the
under-productio of Europe and to our
participation therein through the drain
upon us by exports.
Imitation, more especially in its ex-
larsion Of credit facilities for tns