Price Fixing in the United States During the War

Cover Price Fixing in the United States During the War
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It is easy to make too great concessions to those who desire to keep " business as usual ", and to underestimate the requirements of the military program. The second danger lies in a failure to adjust the required production to an efficiency basis. By this is meant that the price-fixing agency may fail to take the steps necessary to insure that the quantity of the product under consideration will be secured as largely as possible from low- cost, efficient producers. There was an unfortunate ten...dency to spread the business over the entire range of existing produ- cers, instead of concentrating it as much as possible with the 'The minimum price of wheat was fixed with regard to such imperfect cost data as were available.
FRICE FIXING IN UNITED ST A TES DURING THE WAR 33 more efficient. This constituted a touch of " stabilization". In dealing with cement, for example, it is probable that the gov- ernment and the public would have been much more cheaply supplied had some of the high-cost plants been closed down and the most efficient ones operated at capacity.' But, in spite of these dangers, much can be done and was done to arrive at a reasonable basis.


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