"Our work under the Food Control Act has revolved largely around the curtailment of speculation and profiteering. This act will expire at the signing of the peace with Germany, and as it represents a type of legislation only justified under war conditions, I do not expect to see its renewal. It has proved of vital importance under the economic currents and psychology of war. I do not consider it as of such usefulness in the economic currents and psychology of peace. Furthermore, it is my belief that the tendency of all such legislation, except in war, is to an over-degree to strike at the roots of individual initiative. We have secured its execution during the war as to the willing coöperation of ninety-five per cent of
the trades of the country, but under peace conditions it would degenerate into an harassing blue law.
"The law has well justified itself under war conditions. The investigations of our economic division clearly demonstrate that during the first year of the Food Administration farm prices steadily increased by fifteen per cent to twenty per cent on various computations, while wholesale prices decreased from three per cent to ten per cent, according to the basis of calculation. Thus middlemen's cost and profits were greatly reduced. This was due to the large suppression of profiteering and speculation and to the more orderly trade practices introduced under the law.
"It is my desire that we should all recognize that we have passed a great milestone in the signing of the armistice; that we must get upon the path of peace; that therefore we should begin at once to relax the regulation and control measures of the Food Administration at every point where they do not open a possibility of profiteering and speculation. This we cannot and will not permit so far as our abilities extend until the last day that we have authority under the law. When we entered upon this work eighteen months ago our trades were rampant with speculation and profiteering. This
grew mainly from the utterly insensate raids of Europe on our commodities. I look now for a turn of American food trades towards conservative and safe business because in this period that confronts us, with the decreased buying power of our own people, of uncertainty as to the progress of the world's politics, with the Government in control of exports and imports, he would be a foolish man indeed who today started a speculation in food. This is a complete reversal of the commercial atmosphere that existed when war began eighteen months ago, and therefore the major necessity for law in repression of speculative activities is, to my mind, rapidly passing. It is our duty, however, to exert ourselves in every direction so to handle our food during reconstruction as to protect our producers and our consumers and to assure our trade from chaos and panic."
On the same day that this address was made Hoover began the canceling of the Food Administration regulations, and this cancellation continued rapidly through November and December. It had to be done with care to prevent dangerous disorganization, and some continued control was necessary during the winter and spring in order to carry out the agreements of
price stabilization entered into between the Food Administration and the producers and handlers of certain commodities, as hogs, sugar, rice, and cotton seed and its products. The wheat price guarantee and control especially provided for by Congress and later Presidential proclamation remained vested in the United States Grain Corporation. It will expire on June 30, 1920.
But Hoover could not remain in America to see this demobilization of the Food Administration through personally. Only ten days after the armistice he left for Europe, at the request of the President, to direct the participation of the United States in the imperatively needed relief of the war-ravaged countries of Eastern Europe. Edgar Rickard, who had been Hoover's chief personal assistant through all of the Food Administration work, was appointed by the President as Acting Food Administrator in Hoover's absence.