The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1922-02-02
FINANCE
BUSINESS
D. n @. FORBEA

we DO well 10 Jake an lutercot III
the troubles of those who supply us
with our daily bread--our farmers.
We will be wise II we encourage the
Government and other agencies to
extend all really helpful assistance
at this time to the needy. the handi-
capped, the embarrassed, among our
producers Of the staff OF life.
But price fixing Is not the way out.
There are two panaceas which
must not be allowed to bedevil the
situation. These are:
Price fixing.
Printing on paper money; that is.
When we stop to think Of what
our agricultural population are suf-
fering, through the painful drop in
the market value of their products,
II is not to be wondered at that gov
ernmental fixing Of prices found
champions at the important argri-
cultural conference at Washington.
It IL entirely natural that farmers
should feel aggrieved that the prices
Of the things they sell have tumbled
very much more than have the
things they must buy, and that their
thoughts go back, to what was &C
complished for them by price fixing
during the war. Price fixing then
enabled them to obtain very profita-
BILE prices for their products.
But II was one thing to fix agri-
cultural prices during the period
of artificial prices all round. Gov.
ernments assumed powers then, and
the public submitted to curtailment
of their freedom, on a scale which
would not DO tolerated during peace
times. Not only so. but whereas
price fixing was feasible during the
supreme emergency. when govern
ments practically controlled buying.
1t would not DO feasible to fix prices
world IL back to an open market
basis, with the governments no
longer spending billions for food
stuffs. and the seas open to the
merchant ships Of all nations to go
and come as they wish. and carry
whatsoever cargoes they choose.
In the naming of prices for
wheat. oats. corn, beef, pork, lamb.
move the financial troubles Of our
wool, etc. by the United States
Government could successfully re-
agricultural population, then our
Government ought to have no hest
tation in issuing price lists.
But 1t cannot be done.
We must not shut our eyes to
the fact that other countries pro-
duce the things which our own
farmers produce and that there 10
no compulsion for any nation or
any individual to buy american
products when similar products are
obtainable elsewhere at lower prices.
Suppose our Government decreed
that wheat must bring S1.50 a
bushel. Our exports OF wheat
would Immediately cease, because
foreign consumers would at once
turn to the supplies which such
countries as Argentina, Australia
and Canada are eager to dispose Of
in the worlds markets. The same
thing would happen IL artifically
high prices were fixed for other
American projplcts.
ing been swollen through the cessa-
ton Of exports, the pressure Of sup
plies upon the domestic market
would become greater and greater.
One prominent representative of the
farmers urged that $5O0,0 900 of
money, raised from you and me. the
taxpayers. be applied to the buying
Of farm products. But after the
$500, 100000 worth had been rushed
into the hands Of the Government.
what then? Half a billion dollars
would not buy a large percentage Of
our total farm products. And what
would be done with the Govern
ments agricultural hoard? The
very fact that such a surplus &C.
cumulation was overhanging the
market would tend to depress prices
throughout the whole world and
keep buyers in a state Of unsettle-
ment day by day.
Did you notice the statement
made by the president Of the largest
financial institution in America this
week. on his return from an inyes.
ugation OF conditions in Cuba? The
cuban collapse has cost this insti.
tuition great deal Of money, and
II anyone in America has reason to
be anxious to see done everything
possible to hasten the restoration
OF sound conditions in Cuba IL is the
head OF this institution. Yet what
does he have to say regarding the
suggestion that sugar prices be
fixed?:
"A commission to control the price
OF sugar would be a calamity"
where a country has a world mo-
nopoiy OF a certain product, that coun.
Try may successfully fix an arbitrary
price and maintain IL. But when Wi,
have to deal with commodities which
can be. and are produced over the
greater part Of the world. and pro.
duced In abundant supplies, price
fixing In times of peace is impossible.
Economic history is strewn with