Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1920-06-09

the courts of the United States
Something more in this direction can
be accomplished by the proper regu-
lation OF cold storage. and a PHI Tor
that purpose has passed both Houses
and is now in conference
Another deep-seated cause of the
rise of prices. more effective IN MS
results although less OBVIOUS man
per capita of the circulating medium.
This has doubled since the war be-
gan and if in the space OF a few~years
the amount of the circulating medium
effect in stimulating and advancing
prices. During the war credits have
been enormously inflated and there
have been large additions TO the cur
banks Here it is possible to check the
advance of prices by law. We can
provide for the control of credits in
such manner as TO give preference 10
the most essential products. We are
also able to reduce the amount OF the
circulating medium in the form Of
Federal Reserve bank notes the au-
thority having been given during. the
war 10 increase the issue OF these
notes from two billions TO four bill
lions. II should be one of the first
acts of Congress to deal with this
essential point and il would have a
marked effect in reducing prices by
steadying them and bringing them
uO"n ~ q AO"e1 anu Aio1e AOiH iS4
Remedy Lies in Production
The most potent remedy of all
against advances in the high cost OF
living, however, lies in production.
which cannot be reached directly by
and fall off. the cost of everything
will be advanced by the simple force
of scarcity which inevitably drives
prices upward The most essential
remedy for high costs is TO keep up
and increase production and par,icu-
larly should every effort be made TO
advance the productivity OF the farms
Just how much the Government can do
in this direction is uncertain. but it
can aid and support and If anything
can be done IL must not be omitted or
overlooked. At the same time it must
not be forgotten that there is a vast
difference between the powers of the
National Government in time OF war
of peace. The normal limitations of
times OF peace restrict very much the
powers OF the general government and
IN helping to increase the productivity
OF the. farms. which must be done
through government action. the Re
publican party promises to use every
power IN this direction whether with
in the State or Federal Jurisdiction
! have touched upon this matter of
prices and the high cost of living be
tant domestic question now before the
country and one to (Which the Repub-
lican party should address itself with
out delay in every direction where
help is possible There are. Of course.
as l have said. many other important
economic questions to be dealtswith
as speedily as may be. but the time
allotted to me makes il impossible 10
touch upon them all.
There is, however. one measure
which cannot be passed over. a single
great law which has been enacted and
which in any period would be suffi-
Gent TO distinguish q Congress as one
OF high accomplishment This is the
Railroad Act. For SIX months able
committees in both Houses. commit
tolied day after day upon this most
intricate of problems. There was
much serious debate in both Senate
and House and then the bill. signed
by the President. became law No
doubt time and experience will show
that improvements in the Act can he
made, but in the main il IS a remark
aols piece of legislation and in gen
erai principles is entirely sound. and
notning could be more unfair than TO
CRITICIZE the present owners contend
ing with the legacy Of mismanage-
nent, waste and confusion becueathed
by the Government when il returned
the ROADS only three months ago The
A~osA4 oaA LIZ possesses a.S9 n
portance wholly distinct from its pro
Visions. which have been framed with
great care. This Act declares 4 ma
tlonal policy and. SO far as any law
can DO it. establishes that policy as q
rule OF action. The policy ernbodied
IN the bill comedies at the outset ina
IL Is OF course impossible to return
to the old system or lack OF system
IN the mana cement of railroads They
must henceforth b. under thorough
fT6vHYvn7
Government must have over them a
large measure OF control The trans.
portation system OF the country car
no longer be suffered to confirm.
Hlthout such supervision and control
but the policy also represents the
principle that the Government must
not assume the ownership Of the rail
roaos. Their operation and manage
ment must be left in private owner
snip: The phrase government own
ership" means not only that the gov.
eminent shall own the railroads but
also, II is TO be feared. that those who
run the railroads shall own the gov
eminent: General government owner
snip under our political system would
inevitably bring about the mastery OF
the Government by those who operate
the machinery of transportation or OF
any other industries which come into
the general public, for whom all indus
tries exist, would disappear under this
scheme and nothing would be left m
tne people except the duty of paving
taxes to support the roads. That is a
very perilous position for repre-
sentative democracy. Our Govern
ment must not be dominated b1- any
one man or any class or any selected
body OF men who represent. part OF
the people and not the whole people
Moreover. in the United States, gov
eminent ownership wherever applied
to an industry. whether il Involves
transportation or telegraphic and tel
ephone communication OF shipbuil0ine
and wasteful system. badly managed
and certain to be intolerably burden
some to the taxpayers. This point il
Is not necessary TO argue because the
country through the demands of war
turned the railroads over to the Gov
eminent and we have had the painful
privilege of observing the perform
ance which followed The govern
ment management which ensued was
inefficient. the railroads were wretch-
edly conducted and money was spent
and wasted with a prodigality which
nothing can defend. During the time
in which the Government undertook
to manage the railroads they sustain
freight rates loss of over a million
dollars day and the total payments
out OF the treasury TO support the
railroads have reached the enormous
sum OF one ana three-QuarterS bill
lions of dollars There was universe
dissatisfaction with the government
management and it was a just dissat-
isfaction. The experiment failed and
should not be renewed
From domestic affairs. which I have
only touched upon briefly, let US turn
TO foreign questions. to our relations
with the world of other nations. Look
first at one Of the most pressing i'm
portance just beyond our own Dor
ders. Look at Mexico. For seven
years the United States has been pur-
suing under the direction of the pres
ident policy of ''watcflfu. waiting.
The President saw fit to intervene in