this was precisely what had not occurred in the steel trade; for the excellent reason that the mills were under so great a strain of work to meet legitimate and urgent orders that no sales were made except to customers who needed the material, and then, at times, only on contract for delivery six months or one year later. But the man whose present business plans made essential the obtaining of steel and iron was in another position. With the requirements of governments rising from 15 per cent of the annual production to something like 40 per cent, the opportunity for getting what he needed narrowed rapidly. At length came a Washington despatch, apparently official, actually most erroneous, declaring that the United States Government, in behalf of itself and its Allies, might presently commandeer the output of every steel mill in the country. It was the wild bidding which ensued from outside consumers that carried the price of steel to $100 a ton.

Tis to keep these

Food Controller

carefully in mind in order to understand just what has happened. At this present writing, buying of wheat for future delivery is under such restrictions as virtually to prevent speculation for future delivery. Therefore neither a Mr. Hooforeign government nor a home ver's Job as miller can provide for future requirements through buying contracts for delivery on the grain exchanges. The new regulation, as the Chicago Board of Trade directors themselves pointed out, "compels those requiring wheat for immediate purposes to make purchases from farmers or grain dealers." Since the farmer is able to stand out for high prices, it might easily result from this elimination of the speculator, all other things remaining equal, that the effort to cheapen wheat would be entirely defeated; or at best, that prices would be relatively low at harvest time, when the new wheat was on sale in abundance, but proportionately high at the season's end, when comparatively little grain was left to sell. It is in such respects that the speculator regulates prices, through buying contracts for future delivery when prices are low and selling when they are high.

But all other things are not equal; for the government is placing in the hands of Mr. Hoover's commission the general control of food supplies, including distribution; while regulation of exports, according to the individual needs of foreign consuming states, has similarly been placed in the administration's hands. Determination of the reasonable price for steel on government contracts has been referred to the Federal Trade Commission. Cotton prices have not yet been touched; but other commodi

been taken up, with a view to regulation of the price.

T will appear from our examination of

measures is not only to prevent extortion by producers, but to avert such reckless and panicky bidding by consumers as even the

An Alarming Step Toward State

most careful endeavors of producers might be unable to control. Nevertheless, to many thoughtful minds this assumpSocialism tion of arbitrary power over markets and prices, by the government, is a long and alarming step toward the fastening of state socialism on our institutions. When it is seriously threatened that, in default of readjustment of the inflated prices, the Federal Government will take control of the country's entire wheat crop or seize the mills of recalcitrant steel producers, the United States would seem to have swung far from its oldtime economic moorings.

Something, perhaps much, of these wartime innovations will be perpetuated in our own governmental system when the war is

over.

No great war ever leaves a country's political and economic institutions just what they were before, and this is a war which is shaking the whole framework of human society. The war expedients and the arbitrary "war powers" of our civil conflict of the sixties did not by any means all survive the war; but American political institutions were certainly not the same after it as they had been before it. The permanent changes which this present war will have caused are as sure to affect the social and economic structure as the political; to-day we are no more able to say what those permanent changes will be than were the Americans of 1863 and 1864.

In the economic field, however, there is much to cheer the American mind. Of our financial situation we have had and are having a convincing test of strength and soundness; and, in spite of the recent violent disorder in the markets for commodities, the longer view can also find grounds for reassurance in the commercial, industrial, and agricultural situation. There is a good deal of genuine significance in the fact that whereas Europe's entry into war was signalized by the closing of the stock exchanges, because otherwise the whole world would have sold the investment securities of those countries at ruinously low prices, our own entry into war was followed by shutting down on trading in grain and cotton exchanges, because otherwise the whole world would have continued to buy our products at ruinously high prices. The real sources of economic wealth are in our hands. The war has not destroyed them.

INVESTMENT LITERATURE

Directly from our advertisers or through our Investor's Service Bureau, readers of SCRIBNER'S MAGAZINE may obtain, without charge, authentic literature pertaining to any investment or financial subject.

Readers may write direct to the following investment bankers at the addresses given, mentioning SCRIBNER'S MAGAZINE, or they may check the literature desired, sign the coupon below, and mail this page to the Investor's Service Bureau, SCRIBNER'S MAGAZINE, 597 Fifth Avenue, New York.

(Continued on page 66)

To father and mother the interior trim--the "woodwork" is all important. They realize that this is the part of "our house" that they must live with-and it must be harmonious, and in good taste. "Beautiful birch" (veneer or solid) has solved the question of interior trim. for thousands-to their lasting satisfaction.

Its lovely "satiny" sheen, due to close grain, permits of the widest latitude in shades of finish, including white enamel (it seems as though birch were made to order for the exacting demands of the enamel finishes).

"Beautiful birch" has all the virtues expected of a hardwood. Very hard, practically mar-proof and economical in price and because of these it has earned its honored place among America's popular hardwoods-used everywhere.

FREE-May we send you some little birch panels showing different finishes, and handsome birch book? You should know birch before you build.

NORTHERN HEMLOCK and HARDWOOD MANUFACTURERS' ASSOCIATION 215 F. R. A. Building, Oshkosh, Wisconsin

The Premier Investment: Wm. R. Compton Co., St. Louis, Mo.

"The South and Southern Municipal Bonds": Stacy & Braun, Toledo, Ohio.

Record and Analysis of United States and Foreign Government Bonds: C. F. Childs & Co., Chicago, Ill.

Investing Your Monthly Savings: Lloyd & Co., 135 Broadway, New York City.

New Circular Descriptive of Cities Service Preferred and Common: Henry L. Doherty & Co., 60 Wall St., New York City.

The Management of Your Estate: Union Trust Co., 80 Broadway, New York City.

Industrial Service: The National City Company, New York City.

Selected Investments: Peabody, Houghteling & Co., Chicago, Ill.

Investing $100 to $10,000: Hambleton & Co., 43 Exchange Pl., New York City.

August Stock and Bond Investment Suggestions: Merrill, Lynch & Co., 7 Wall St.. New York City.

Acid Tests of Investments in War Times: S. W. Straus Co., 150 Broadway, New York City.

$100 Bonds

Odd-Lot Investment S

John Muir & Co..

61 Broadway, New York City.. Doherty News: Henry L. Doherty & Co., 60 Wall St., New York City.

6% First Mortgage Bonds Secured by Seattle Property:" Goodwin Real Estate Co., Seattle, Wash.

How Investments May be Made Tax Exempt in New York State: National City Company, New York City. Investment Suggestions: Sheldon, Morgan & Co., 42 Broadway, New York City.

Par Value of Stocks Listed on the New York Stock Exchange (when Par Varies from Usual $100): Lloyd & Co., 135 Broadway, New York City.

Sugar Stocks: Hartshorne & Battelle, 25 Broad St., New York City.

Safety and Profit in Central Kansas Farm Mortgages: The
Farm Mortgage Co., Topeka, Kans.

How to Invest in Standard Securities by the Partial Payment
Plan: Harris, Winthrop & Co., 15 Wall St., New York City.
Back of the Investment) H. M. Byllesby & Co.,
Byllesby Management j

Chicago, Ill.

Federal Farm Loan Act: Geo. M. Forman & Co., Chicago, Ill, August Investment List: S. W. Straus& Co., 150 Broadway, New York City.

Income Tax Record for recording next year's taxes): Wm. R. Compton Co.. St. Louis, Mo.

Partial Payment Plan: Sheldon, Morgan & Co., 42 Broadway, New York City.

Making Money Work: McClave & Co., 67 Exchange Pl., New York City.

How Forman Farm Mortgages Are Made: Geo. M. Forman Co., Chicago, Ill.

Kansas Farm Mortgages: Perkins & Co., Lawrence, Kans. Lacey Profit-Sharing Bond: James D. Lacey Timber Co., 332 S. Michigan Ave., Chicago, Ill.

Weekly Market Letter: McClare Co., 67 Exchange Pl., New York City.

Partial Payment Plan: L. R. Latrobe Co., 111 Broadway. New York City.

Street Improvement Bonds: Oakland Street Improvement Bond Co., Oakland, Cal.