The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1937-03-19

The governments opposition has
taken the stand that the initial Inn
petlis given French economy by the
second devaluation Of the franc has
been neutralized BY the uncontrol.
liable rise In prices. They warn q
financial collapse Is ahead unless
something Is done.
While the government Is show
ing due concern for the problem 1t
believes 1t can check rising prices
by severe repressive measures that
have been embodied In price con-
troll bill which parliament viii be
asked to vote In the near future.
Profits Called Pyrsmided
The acute nature Of the problem
has led pro-government economists
to study and anaiyze various fac
tors contributing to the unprece-
dented increase in prices. They have
come to the conclusion that the In
dustrialists and middlemen have
pyramided excess profits at every
stage OF production and sale. This
added to certain legitimate factors
resulting from wage increases, de-
valuation, and the ensemble Of social
laws is largely responsible for pres
ent price trends.
One well known economist cali
culated that the legitimate price
increase Is limited to 1872 per cent
whereas wholesale prices and re-
tail prices have increased 80 and
% per cent respectively.
He pointed out that the ,lnfa-
vorable trade balance In January
totaled $52,000,O00 compared to
sos, 900, 900 In business transactions.
That he said is the first element to
be considered In the first compu-
tation Of the legitimate increase In
prices.
Second element Is that Of the social
laws. Approximately $4,375, 00O, 900
was paid In salaries in 1885. The
workers took $3,475. 100000, the re-
mainder being paid in salaries to
company directors, statesmen, fore
men, and office employees.
Workers Pay Up 40 Per cent
Workers salaries were increased
on average OF 40 per cent, which
this year should give them an adj
ditional income Of more than ST.
600 100000. The income OF the
second group was increased APP
proximately ~ per cent, making a
total Of nearly $l,500,0O0,0 that
must be added to national produce
ton costs.
The revalorization of wheat prices
placed burden of $l50,000,O0O on
the cost OF living. This increase
represents IL per cent Of the total
figure.
Using these basic elem aats, the
economist thronuh adding the sums
of the increase came lathe conclu-
sion that price levels should have
only risen 1872 per cent, whereas
wholesale and retail have increased
80 TO % per cent respectively.
Excess Profits Cited
Analysing the rise In certain
commodities. the economist con-
cluded that speculation, desire for
excess profits, and the systematic
driving UP Of prices for political
reasons explain the present difncult
situation Of French economy.
Cotton has increased 65 per cent
since last June. The price In Eng
land has been relatively stable In
the same period. The IRISH In France
can be attributed to the francs de-
valuation which added 20 per cent
to the price. The additional Is per
cent thus Is attributed to specula-
ton.
The same holds true for coffee
which rose 10 per cent In France
and only 10 per cent In New York.
Rubber rose so per cent In France,
and only 48.5 per cent In England.
Copper increased II per cent, COM
pared to arise Of SO per cent in New
York.
In the same interval French coal
rose sos per cent, lumber 39.5, iron
ore 20 and wool "a.
The bill pending in parliament
would establish a price court en-
powered to impose heavy fines and
penalties for unJustifiable price in
creases.