POOLING AND PRICE CONTROL.

Shannon News, 5 October 1926, Page 4

POOLING AND PRICE CONTROL.

THE VICIOUS CIRCLE. That price control without control of production is unsound in principle and harmful in practice is maintained by Professor J. E. Boyle, ]of Cornell University. I "The pooling of perishable crops |to effect economies and secure highjev prices through better quality and [ distribution is sound in principle find successful in practice, says the professor. Pooling for price control, or Avithholding from market, or for other forms of risk assumption, is a speculative activity, and should be understood and frankly called such. It succeeds on a rising market, loses on a falling market. It does not control prices. This is equally true but less apparent when the pool is a monopoly. An agricultural monopoly Is possible for a time, but it is both useless and harmful. When a pool is also a monopoly, it passes through three stages, as follows: (1) Pool as a monopoly leads to high price. j (2) High price leads to a surplus. I (3) Surplus leads to low' prices, and back to a pool without mono-

poly. This is true whenever any agency exercises price control and not at tho same time production control.