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Show CABINET AND CONGRESS TAKE UP PROBLEM OF HIGH PRICES . . t : : Chosen at Meeting at White House to Consider Con-sider Measures to Combat Com-bat Soaring Expenses. IMatter Discussed in the l Senate and House; Several Resolutions Offered Of-fered for Quick Action. (Chicago Tribune Special Service.) WASHINGTON, August 1. The high cost of liviug was the target of half a dozen moves in congress today, while the cabinet appointed a special committee com-mittee to wrestle with the problem of bringing down prices. The cabinet committee, consisting of Director General Hines of the railroad administration, Federal Trade Commissioner Commis-sioner Colvin, and Assistant Secretary of Treasury Leffingwell, Will make recommendations Monday as to the course to be pursued by the government govern-ment in dealing with the high cost of living. The senate engaged in a long debate over a resolution introduced by Senator Myers of Montana, attributing the cost of living to currency inflation and directing di-recting the banking and currency committee com-mittee to recommend legislation for the gradual reduction of money In circulation, circula-tion, and Senator McKcllar proposed a resolution creating a joint congressional congres-sional committee to investigate the cost of living. No action was taken on it. The Myers resolution contained the statement that on August 1, 1914, the money in circulation aggregated $3,-367,000,000, $3,-367,000,000, and that on July 1, 1919, it had increased to $5,84-1,000,000. Senator Sena-tor Myers contended it was hopeless to try' to bring down the cost of living until deflation was started. ACTION FAVORED ON IGOE RESOLUTION. In tho house favorable action on the Igoe resolution, for an investigation by the federal trade commission of the increased in-creased prico of shoes, was taken by ,tho committee on interstate and foreign commerce. It is proposed to call the resolution up for action in the house tomorrow, and the rules committee has agreed to give a special rule for its early consideration. consid-eration. In calling his resolution in the'senatc, Senator Myers declared that if the United States is determined lo carry the burdens of the economic world there can be no hope of early beginning of deflation. "It is time," he said, "for America to begin to look to the interests of its own people first." "American money is at a discount in those countries with which the balance of trade is unfavorable to us," said Senator King of Utah, "while under the inevitable law which governs exchanges, ex-changes, our money is at a premium in countries which have unfavorable balances bal-ances of trade with the United Stales. Inflation is universal, though varying mi degree in different countries." GOVERNMENT TO BLAME, KIRBY SAYS. "The government during- the war, in order to Indue0 inereased production, deliberately de-liberately permitted combinations of'pro-dueers of'pro-dueers to maintain bih prices, and even ! fixed hlf?h prices on many necessities and guaranteed their maintenance." said Senator Sena-tor Kirby 01 Arkansas. "This was done for a very proper and necessary purpo.-e. but the of'ects of it are with us yd. KverJ today the government is holding hack from sale of great quantities of foonst uf fs m its possession, and ia retaining thousands of motor cars, not permitting them to go on the market lest their sale reduce the prices which manufacturers must take for their current, production. Tims the government's gov-ernment's part is to maintain thf fn- (CoDtiuucd on Page 9, Column 2.) vided to carry out the purposes of the act. Representative Huddleston of Alabama proposed a resolution creating a national trade council to go into the whole question ques-tion of high prices. COMMITTEE IIEO TO PUlfll RELIEF (Continued From Page One.) flated basis of value created during the war. The time has come when the government gov-ernment should adopt a different program. pro-gram. "I consider that tne time has come for vigorous measures to remedy these conditions, con-ditions, and I intend shortly to introduce a resolution which, I believe, may be useful. use-ful. Although I will not introduce it today, to-day, I shall read it to the senate: " 'Resolved, That the committee on Judiciary Judi-ciary be, and is hereby instructed, to report re-port a bill fixing a schedule of maximum sale prices at 25 per cent under present current market selling prices on goods and commodities moved in Interstate com-nierce." com-nierce." "I want to get the opinion of the great law committee as to the feasibility of such a drastic plan as this." PROPOSAL OLD ONE, UTAH SOLON SAYS. "The senator must know," interjected Senator King, "that such proposals are as old as antiquity, and that with very few exceptions economists have long since agreed that attempts at government price-fixing price-fixing must fail, because ultimately the law of supply and demand is bound to "Senator King insisted that the "farmers "farm-ers of the country have been profiteering profiteer-ing " and declared that they have been receiving exorbitant prices for their hogs and their grain. "The farmers have been profiteering because they were forced to," interrupted interrupt-ed Senator Kirby. "The government is to blame for the high prices. It has immense im-mense stores of food which it has withheld with-held from-the public. During the war it permitted business to combine and fix high prices and from these same combinations com-binations permitted by the government prices are still being put higher and higher. The government permitted it during the war and is permitting it now." CURRENCY INFLATED, SMOOT DECLARES. "Tf we are to finance the governments of EuroDe and the rehabilitation of the waste places of the world we cannot expect ex-pect early deflation of our currency," declared de-clared Senator Smoot. "We can accomplish these things only through the utilization of an inflated currency. We have now circulation of ?o4.25 per capita and we should be warned that if we are to undertake all these duties that are ursod upon us it .vtIII go much higher before it is reduced." The house committee on interstate commerce amended the Teoe resolution bv confining it solely to shoes. The resolution res-olution applied also to the increased price of sugar, clothing and coffee. Because of the fact that a resolution introduced by Representative Tinkham of Massachusetts Massa-chusetts relating to sugar is pending and hearings already have been held, it was decided to eliminate that commodity. It w;is stated that inquiries relat ive to clothing and coffee probably would be made in some other way. Representative lgoe. author of the resolution, res-olution, offered no objection to the limiting limit-ing to shoes and faid he thought quicker action would be obtained as a result. The resolution as approved by the committee follows: Igoe Resolution. "Resolved, that the federal trade commission com-mission is hereby directed to inquire into the Increase in the price of shoes to ascertain as-certain the cause and necessity for the increase; to ascertain the manufacturers' cost price end sell in i? price and the retailers" re-tailers" cost and selling price for the years 131S and 1!H9, and to report to the house at the earliest convenient date." A MM au t horizins? the president to requisition food, fuel and other neccs-s: neccs-s: rics ncnl-d to supply the public was introrlueed by Representative Janios of Michigan. It provides tha t the president shall requisition these coin mod i lies at reasonable prices to be fixed by him, provision pro-vision being mdo for an a roll ration of the matter if these prices are not satisfactory. satis-factory. The sum of $10,000,000 is pro- |
