( 218 ) 



Compliance resulting in the loss of time is frequently more 

 serious than the loss of food. 



A group of lawyers drew up recommendations for the re- 

 pairs of a perishable food plant in the event of a fire, and at 

 the end included a paragraph that reads more or less as fol- 

 lows: 



"If procedure as outlined above is followed, and steps are 

 taken to effect the necessary repairs ... in all probability 

 the work will be completed before the applications have been 

 acted on in Washington." 



One executive commented that this was the way he op- 

 erated all the time. Another person added that this was the 

 only way an efficient executive of a company dealing in per- 

 ishable foods could operate. 



\ 



. Black Markets Will Be with Us 



All through history, black markets have prevailed when 

 the market price was above the ceiling prices, and it makes 

 no difference whether the declaration against them was made 

 by kings, emperors, fiihrers, or New Dealers. Market prices 

 arise from a series of complex factors which are more easy to 

 become conscious of than to explain. The number of vari- 

 ables and the innumerable ways in which they can combine 

 are beyond the comprehension of the businessman, the price- 

 analyst, and the regulators. The power of market prices is 

 greatly underrated. On the other hand, the power of ceiling 

 prices is greatly overrated. 



A black market is the inevitable accompaniment of fixed 

 prices in a regulated economy. Since the administration can- 

 not change the rules as fast as the conditions change, com- 

 modities will be bought and sold at other than the fixed prices 

 and in quantities other than those prescribed by priorities 

 and rationing. 



There are only two alternatives: (a) permit the black 



