RELATED TOPICS 279 



regulated scarcity values to some extent. But, generally 

 speaking, the problem has not been attacked in a 

 comprehensive manner. The piece-meal policy of most 

 of the State Governments has resulted in dissatisfaction 

 to both producer and consumer. At present, price- 

 fixing is chiefly in the hands of Federal Prices Com- 

 missioners, whose policy it is to establish fair competitive 

 rates with rises or falls according to the trend of general 

 prices. 



The same may be said of other countries where this 

 policy has been adopted. The British Government first 

 tried direct price fixing, but the heavy importations of 

 food-stuffs made this a difficult matter, and now the 

 policy in regard to the more necessary commodities 

 is for the Government to purchase supplies and 

 re-distribute them. In some cases the goods are 

 sold at lower than the cost price to the Government, 

 and the loss is a charge on the general revenue of the 

 country. The German Government, too, has found price 

 fixing a relative failure, and has taken up the policy of 

 commandeering and nationalising supplies together with 

 restrictions and prohibitions of the consumption of 

 various articles. All this proves that the determination 

 of prices is a very complex problem, and the attainment 

 of a stable standard of value is quite as difficult as 

 economists have for many years endeavoured to show. 



(e) The Policy of Commandeering the Supply. The 

 following paragraphs appeared in the original manu- 

 script of this work as it was presented in November, 

 1915, for academic purposes. At the time it was 

 written many others interested in the problem were in 

 agreement with the policy laid down. It is interesting 

 to observe how time has proved the necessity for it: 



" There was much discussion about the State taking 

 over the milling industry, and also establishing State 

 bakeries. But these were more of the nature of threats 

 than proposed actions ; for the difficulties of the situation 



