so expensive a remedy for currency depreciation, the nations in which such depreciation exists should let it remain if necessary for an indefinite period, adopting, however, the promptest and most effective measures to prevent it from proceeding any farther. The world has surely had inflation enough for the present without increasing the evil by adding inflation in gold to inflation in paper.

HOW WOULD DR. FISHER'S PLAN AFFECT THE
PUBLIC DEBT ?

In regard to the gold obligations of the government, the effect of the adoption of Dr. Fisher's plan would, of course, depend altogether on the course of prices. Should these continue to rise by a small percentage every month or two, involving the necessity of corre sponding increments in the weight of the gold dollar, these gold obligations would, of course, be materially increased. But it is, perhaps, quite as likely that the return of peace may usher in a period of falling prices, in which case successive diminutions in the weight of the dollar would have the opposite effect. In any case, a goods standard would bring to the government any advantages that may accrue from improved industrial methods, processes and appliances, whereby the labor cost of commodities may be reduced.

But the concern of the government will, of course, be with the strict observance of its contracts and the maintenance of its credit, and its policy will presumably be dictated by a desire to do as nearly as possible what exact justice requires, keeping a straight course between its creditors and the taxpayers and showing no unfairness to either at the expense of the other. On the whole, however, the fact that its great loans have been

floated on the basis of a dollar of 25.8 grains of standard gold will have great weight as an argument against making any change whatever in the weight or fineness of that dollar. Moreover, any such change might seriously endanger the success of any loans which may hereafter have to be negotiated.

EDWARD T. PETERS.

so expensive a remedy for currency depreciation, the nations in which such depreciation exists should let it remain if necessary for an indefinite period, adopting, however, the promptest and most effective measures to prevent it from proceeding any farther. The world has surely had inflation enough for the present without increasing the evil by adding inflation in gold to inflation in paper.

HOW WOULD DR. FISHER'S PLAN AFFECT THE

PUBLIC DEBT ?

In regard to the gold obligations of the government, the effect of the adoption of Dr. Fisher's plan would, of course, depend altogether on the course of prices. Should these continue to rise by a small percentage every month or two, involving the necessity of corre sponding increments in the weight of the gold dollar, these gold obligations would, of course, be materially increased. But it is, perhaps, quite as likely that the ! return of peace may usher in a period of falling prices, in which case successive diminutions in the weight of the dollar would have the opposite effect. In any case, a goods standard would bring to the government any advantages that may accrue from improved industrial methods, processes and appliances, whereby the labor cost of commodities may be reduced.

But the concern of the government will, of course, be with the strict observance of its contracts and the maintenance of its credit, and its policy will presumably be dictated by a desire to do as nearly as possible what exact justice requires, keeping a straight course between its creditors and the taxpayers and showing no unfairness to either at the expense of the other. On the whole, however, the fact that its great loans have been

floated on the basis of a dollar of 25.8 grains of standard gold will have great weight as an argument against making any change whatever in the weight or fineness of that dollar. Moreover, any such change might seriously endanger the success of any loans which may hereafter have to be negotiated.

EDWARD T. PETERS.

GOVERNMENT CONTROL OF SUGAR

DURING THE WAR

SUMMARY

I. Introduction: The four periods of government control, 672. II. The problems relating to sugar for the crops of 1918-19, 674. · (a) Problems relating to price, 674. — (b) Problems relating to supply and distribution, 687. III. The solution of these problems through the formation of the United States Sugar Equalization Board, 693. — (a) Formation of the United States Sugar Equalization Board, 693. — (b) Solution of the problems relating to price, 695. - (c) Agreements with the various producers, 702. — (d) Solution of the problems relating to supply and distribution, 705. IV. Conclusion, 710.

I. INTRODUCTION

THERE is hardly any aspect of government control during the war which offers so rich a field for economic analysis and study as the control of the entire sugar industry by the United States Food Administration. Initiated with modest appeals to the public by Mr. Herbert Hoover in June, 1917, for voluntary reduction in the household consumption of sugar and with a voluntary agreement with the beet sugar producers in the latter part of August, 1917, a continuous development took place, culminating ultimately in complete government control of the entire sugar trade from the points of production to the points of ultimate distribution.

The activities of the Food Administration in so far as they relate to sugar fall into four well defined periods. The first period marks the transition of the sugar industry from a peace basis to a war basis, covering in point of time the second half of the year 1917. The Food Control Act which was the legal basis for all