There was no reason why food should spoil on the hands of the retailer. He never had enough to go around. But it was different with the wholesaler. This class was eternally holding back supplies for the purpose of inducing the government to increase the maximum prices. As time went on, the authorities had to do that, and the quantities then held in the warehouses benefited. The agitation of the producers for better minimum prices was water on the mill of the wholesaler. The government was eternally solicitous for the welfare of the farmer, and lent a ready ear to what he had to say. The minimum price was raised, and with it the consumer's maximum price had to go up. All quantities then held by the wholesalers were affected only by the increase in food prices that was borne by the consumer, not the increase that had to be given the farmer. It was the finest of business, especially since an increase of 5 per cent. in legitimate business meant an increase of another 15 per cent. in illicit traffic.
In the spring of 1916 I made a canvass of the situation, and found that while the farmers were getting for their products from 10 to 15 per cent. more than they had received in 1914, food in the cities and towns was from 80 to 150 per cent. higher than it had been normally during five years before the war. I found that the dealers and middlemen were reaping an extra profit of approximately 80 per cent. on the things they bought and sold, after the greater cost of operation had been deducted. Small wonder that jewelers in Berlin and Vienna told me that the Christmas trade of 1915 was the best they had ever done. These good people opined that their increase in business was due to the general war prosperity. They were right, but forgot to mention that this prosperity was based on the cents wrung from the starving population by the buyers of the diamonds and precious baubles.
Naturally, the dear farmer was not being left just then. He sold when he pleased for a time—until the government took a hand in moving his crops. But this interference with the affairs of the farmer was not entirely a blessing by any means. The brave tiller of the soil began to hoard now. Little actual loss came from this. The farmer knew his business. No food spoiled so long as he took care of it. All would have been well had it not been that the farmer was the very fountainhead of the hoarding which in the cities resulted in the loss of foodstuffs.
There were still many loose ends in the scheme of food regulation. While the farmer was obliged to sell to the middleman, under supervision of the government Food Centrals, all cereals and potatoes which he would not need for his own use and seeding, the estimates made by the Food Central agents were generally very conservative. This they had to be if the government was not to run the risk of finding itself short after fixing the ration that seemed permissible by the crop returns established in this manner. The farmer got the benefit of the doubt, of course, and that benefit he invariably salted away for illicit trading.
But illicit trading in breadstuffs was becoming more and more difficult. The grain had to go into a mill before it was flour. The government began to check up closely on the millers, which was rather awkward for all concerned in the traffic of the food "speak-easy."
A way out was found by the farmers. They were a rather inventive lot. I am sure that these men, as they followed the plow back and forth, cudgeled their brains how the latest government regulation could be met and frustrated.
Butter and fat were very short and were almost worth their weight in silver. They sold in the regulated market at from one dollar and sixty to one dollar and eighty cents a pound, and in the food "speak-easy" they cost just double that.
Why not produce more butter? thought the farmer. He had the cows. And why not more lard? He had the pigs. A bushel of grain sold at minimum price brought so much, while converted into butter and lard it was worth thrice that much. Grain was hard to sell surreptitiously, but it was easy to dispose of the fats.
In this manner hoarding took on a new shape—one that was to lead to more waste.
None of the Central European governments had reason to believe that its food measures were popular. Much passive resistance was met. The consumer thought of himself in a hundred different ways. To curb him, the secret service of the police was instructed to keep its eyes on the family larder. Under the "War" paragraphs of the constitutions the several governments of Central Europe had that power. In Austria it was the famous "§14," for instance, under which any and all war measures were possible.