Show 7 war time behavior of producers I 1 will determine nation s course by united state a senator francis G newlands New landi of nevada our war conditions now require ire supreme collective effort and that carried out to the full extent means socialism wo have found that in war tile tho law of supply and demand breaks down because beci luse nary demands aro are precipitated upon moderate supply prices soar aud and that means disturbances and readjustments for every kind of labor and industry and for commerce it wo could not wait long enough upon entering tho the war for tho usual effect of increased demand namely increased production to restore the ilia prica level therefore in tho stress of war it becomes necessary to take over plants or control prices unless tho ilia desired results of reasonable prices can call bo be obtained by understanding with tho the producers when I 1 say reasonable prices I 1 mean reasonable prices not only for ilia government but for ilia public it is not to bo be imagined that a country can successfully prosecute a war even though it obtains its supplies at reasonable prices ir if its industrial forces at home aro are upset by strikes and lockouts increasing prices invariably moan mean a ferni ferment ent of labor troubles which in turn materially impair the iho military strength of it nation at the ilia front tho the laborer is bound to compare the ilia amount which a dollar of liis his wages will buy today with what it would buy a month and a year ago ire ho lias has to do this lie ho is compelled to contend all the ilia timo time for tho the maintenance of the ilia power of his hia wages J if thides go up in price liis ills wages must go up too wo we must avoid such a raco race between prices and wages by keeping prices down not only for ilia sako sake of conserving all our present industrial strength for war purposes but for tile the sake of the econ economic ornic welfare of the united states after tho ilia war in its ita international trade relations if we do not avoid such a race between prices and wages both will increase etca steadily dily till tho the end of ilia war when our bur wage level will bo be abobo that of the ilia other belligerent countries in ill which there has been better control aud and ilia country with ilia highest wago wage level will then bo be at a disadvantage its cost of production of all commodities will bo be above that of the other countries which will put it out of the running in any competition in in its fan markets and in tho the markets of ilia world and tile high wage level will also bring an all influx of labor which tho ilia country will not bo able to handle every consideration therefore demands that a proper price level I 1 ove I 1 shall bo be maintained by government regulation and this of course involves a form of state socialism |