Evening star., 1939-08-31
Debate on War Price
Controls Confuses
Trade Prospects
Two Groups Differ
On How Far Curbs
Should Be Extended
BY the Associated Press.


ing there would be no general war
IN Europe. a good many business
men today were examining possible
changes which war might bring, and
necessary consequent readjustments
Wall Street was particularly in
terested in the possible actions of
the newly created War Resources
Board, which, in time of war, an
sWerable only to the President,
might have dictator like powers over
American business. Members of the
board met with President Roose-
welt in Washington yesterday.
At present, the status of the board
is purely an advisory one. How
ever, under powers granted by the
amended National Defense Act of
1916, it was pointed out here, the
President may, by proclaiming that
war Involving the United States
is imminent" give the board prac-
tically dictatorial powers over Amer
ican industry.
Chief immediate discussions in
financial circles. in consequence
centered on the possible effects upon
business of such an act.
Price Policy Debated.
Speculation was somewhat con-
fused because of reports that the
board has not yet agreed on a price
policy to be adopted in wartime
Since this seemingly technical sub
ject involves the broad questions of
war profits, imitation and postwar
economic repercussions, some busi-
ness leaders are preparing to meet
either of two possibly eventualities
One group, of which a leading ex-
ponent in the past has been Bernard
M Baruch, head Of the War Indus
tries Board which mobilized Ameri-
can industry during the World War,
contends that a ceiling should be
placed over all prices of goods and
services-shoes, bread, wages and
earnings of capital-in order TO pre-
vent profiteering, reduce the fam
tastic costs of war, and ease post
war economic readjustments.
Another group, with which some
Army experts are said to agree, holds
that universal price rigidity is i'm
possible, possibly not desirable; that
the prices of a few essential COM
modities should be fixed, and that
thereafter brake should be kept
on rising prices as much as possible
without slowing down the war ma
chine.
Pleased by Selections.
Financial and industrial leaders
here are generally pleased by the
conservative complexion of the
board, headed by 38-year-old Ed
ward R. Stettinius, jr., chairman of
United States Steel Corp.
One member of the board. in par
ticular, DR.. Harold G. Moulton,
economist of Brookings Institution.
has devoted much of his time in past
years to study of the economic con-
sequences of war financing.
Should the board be called into
active service upon the outbreak of
general European war. the law pro-
vides that any American business
must Immediately accept its COM
mands deriving from presidential
authority under threat of COM
Wandering and Government opera
ton.
General plans of the board affect
ing business, well-informed quarters
said, may be summarized as follows:
l. Minimum possible interference
with normal commerce.
2. But precedence to all military
requirements.
3. Assurance of fair" profit to
essential business.
Thus, in the general approach
which Is all that can be made at
present, business men now dealing
with products. commodities or serv-
ices that would be non-essential in
wartime, could expect maximum
dlsarrangement. On the other hand.
the Government will be prepared, as
necessary, to give financial or other
assistance as needed to businesses
engaged in essentials (either for the
military or civilian establishments
and to ensure fair profits and mini
mum possible disturbance.