The Washington herald., 1921-01-22
Don't put too fine point to your wit for
fear it should get blnted.-Cervantes.
Commodity Markets.

or OF marketing of any commodities, or the
processes of any business, by law, S that
laws are essentially nAexible Business processes,
especially those which concern the marketing of
commodities, must have the limit of fexibility in
order to render full service to consumer and pro-
ducer
The reason for this is the complexity of factors
which enter into price making, and the fact that
conditions affecting prices change not only from
month to month, but from week to week and even
day to day This is why hedging is necessary as
insurance, in handling the grain crops, and why its
extension to other commodities would be beneficial
to all interests.
Among the price factors, for example, are
transportation, its and availability; weather
conditions, the labor situation supply which changes
with demand, and the almost infinite variety OF
things which constantly obtrudc into both supply
and demand and constantly change both
With those also come Credits the condition of
the financial market in countries of production
origin and final market. The general average Of
buying power in not only our country, but those
that take the surplus. These are but some of the
rsmihcations of factors which enter into price
making.
Any attempt to regulate prices or market pro-
cesses by law, easily be be as fully apt
to work disaster as fair play. That laws are ire
quenty most honored by their breech, avoidance
defiance, or ignoring by common consent is COM
mon knowledge. Laws are temptations to this
when injected into the everyday transactions Of
business
-As Mr.. Hoover humorousy said in his testi-
moay before the Agricultural Committee of the
House: q have great respect for human invention
and. ability avoid almost any kind Of a regula-
ton" 1t the demand for fexibility, for the
easy and free flow of commodities to the markets,
that was the basis Of his contention and that d-
rectly regulatory laws would do more harm than
good
Even laws as to crimes which are wrongs in
themselves, frequently set aside by juries who
regard certain individual rights superior. Laws
of public policy frequently but enforced or for
gotten in periods, sections individuals as in
the judgment Of the administrators in conform
ity to public sentiment, it may be right public
policy to enforce or forget them.
Mr.. Hoovers belief and advice is that any at
tempt at regulation should follow careful and serious
study by capable OF digesting all the divergent
elements which enter into marketing with the con-
stant fux of conditions He believes too that such
regulation can come more safely through agree
meht between such commission and the trade
Organizations, than through law.
He would have law step in only when agree
ment was found impossible and then have it framed
to reach specific objectives through terms deter
mined by the commission, and based on its ex-
perience. Such a commission could also greatly ex-
tend marketing facilities to wide range Of com
modtes which have determined national
price values and confined to local bargain and
sale-wth wider margin than is necessary, through
the local buyer having to protect himself from
hazards unknown to him, to anyone else
.It is national market organization the producers
most need. How to reach this is the Congressional
problem. Certainly it cannot be reached by re-
striotve measures, but only by providing and en-
couraging the machinery so constructed as to mini
mzs the spread between the producer and con-
sunisr with the least possible interference with its
adjustment to constantly changing conditions.