GERMANY’S FOOD.

Taranaki Herald, Volume LXIV, Issue 145084, 8 September 1916, Page 6

GERMANY’S FOOD.

OVER ORGANISATION. Germany’s power of organisation has boon tho admiration and tho envy of tho world, (says a contributed article on tho “ Mechanism of Food Control in Germany ” in tho London Spectator of June 10 last). Her organisation and regulation of the food supply havo evoked earlicular admiration in many quarters, and some British politicians havo advocated copying the German system cn bloc and putting tho nation on rations. Coming events may sober the views of the uncritical admirers of Germany. It seems by no means impossible that Germany, by over-organis-ing and over-regulating the economic 'life of the nation has organised herself into ruin and regulated herself into defeat.

Immediately on tho outbreak of war representatives of the Socialist Party, which had polled 4,250,000 votes at the last election, demanded that tho regulation of food prices should not bo left to rapacious “food usurers,” that the State should fix low maximum prices, and ensure an eqnitablo'distribution of foodstuffs to all. In other words, the German Socialists demanded that tho law of supply and demand should be abolished for the duration of the war. It is almost as dangerous to disregard that fundamental economic law as to disregard the Jaw of gravity. The food problem of blockaded Germany was a simple one. As tho country produces only about two-thirds of the food which is * regularly consumed, consumption and production could bo harmonised only by decreasing the former and increasing the latter. If the law of supply ana demand had been allowed free play prices would have risen considerably. and the greatly enhanced prices would havo induced tho masses to oat less, and would at the same time havo caused the farmers to produce as much as possible, for German farmers like to take advantage of exceptional opportunities of making profits. Consumption of food in Germany could easily havo been restricted, because tho German masses suffer from habitual over-oat-ing. That accounts for the well-known corpulence of tho people. Tho very poor might, of course, have' suffered by increased prices, but. these might have been helped bv the State and by the local authorities so as to tido them over.

Instead of allowing supply and demand to he regulated by natural means, by the means whereby they have been harmonised since tbe creation of things, the German Government chose to embark upon the most gigantic socialistic experiment which the world has seen. In frantic haste it published hundreds of emergency laws, orders and regulations, the hulk of which were designed to regulate tho economic life of the country. A law was passed in the beginning of tho war which 1 empowered the Government to fix maximum wholesale and retail prices for all modities, and to expropriate the owriers of those commodities at the prices determined upon. At the same time it authorised the State to undertake tho distribution of these commodities. Socialist doctrinaires have claimed since the time of Plato that tho State should equitably regulate production, distribution and fconsumption. A huoraucracy can do many things, but it cannot; alter human nature. 'Hint fact is often overlooked by the dreamers of economic dreams, A powerful 'bureaucracy can easily seise all the existing supplies of meat, bread, potatoes, etc., and distribute them more or less equitably; but it cannot very easily regulate production and consumption Mon like the Gormans, who are used to oyer-eating and over-drinking, will continue eating and drinking in excess unless necessity compels them to alter their habits; and as ft is impossible to regulate tho food eaten by each individual by means of Government inspectors, a reduction in the food consumed can be effected only by the pressure of necessity, by high prices. The ablest bureaucracy also cannot compel retailers to continue in their business if it does not yield them an adequate profit, arid least- of all can it force millions of peasant farmers to produce meat, bread, corn and potatoes m large quantities if the maximum prices fixed bv tho Government are not sufficiently attractive. By' fixing maximum prices very low both for wholesale and retail transactions the German Government has seemingly succeeded in reducing product ion and in considerably increasing consumption. As a rule low prices indicate Plenty and high prices scarcity; Had’the German Government allowed supply and demand to regulate themselves' there would' have been high prices, but a sufficiency/It seems possible that by keeping prices at an unnaturally low level the German authorities have created a fatal scarcity throughout tho country.