Evening star., 1939-02-05
Ezekiel Modernizes Joseph's
Plan to Stabilize Big Business
Brain Trusters' Book Suggests Rationing of
Production, With Outlet Assured Surpluses
Through Government Purchase Guarantee
By John Lear,
Associated Press Staff Writer.

price systen-one price for those who
can afford 1t and another, lower, for
poorer people.
Since Secretary Wallace wants his
lower price to reach all those whose
salaries are under $1,500 year, and
since he estimates there are about
100000 persons in this class, many
businessmen fear the tWo-price plan
would eat into their normal trade. To
them cooperation in handling surpluses
through customary channels at lower
than usual profit is a preferable way
of doing things.
However this may turn out, Brain
Truster" Ezekiel says his surplus control
plan for industrial production could not
be applied practically for some time
at least not until after an industrial
planning board had been set up in the
United States Department of Commerce
to gather research data on business
similar to data the Department OF
Agriculture has been collecting on farm
ing since 1920
Here again Ezekiel'S program could mt
as logical development of the Roose-
welt administration program. The Pres
ident has proposed establishment of an
industrial planning bureau. DR.. Willard
L. Thorpe, newly appointed economic
adviser to Secretary of Commerce Harry
L. Hopkins, limited at one in his first
press interview by citing a need for
scientific research in industrial plan
ming And the F. S. G. c., in the
course of its operations since 1933 has
been accommodating much basic informa-
ton of the type the planning bureau
would seek.
There is, for instance, a certain price
at which thrifty housekeeper will buy
a dozen eggs. At price so much lower
than that she will buy dozen and a
half The F. S. c. c. is learning what
those price levels are.
Explore Reduction Possibilities.
That's all very we'll. but how to get
the price down to the place where the
housewife would buy dozen and half?
The F. S. C. C. is trying to do some
thing about that, too.
Spoilage and breakage is always a
factor the corner grocer considers in
setting his price. The F. S. c. c. has
succeeded in cutting spoilage costs to
six-tenths of one per cent.
Transportation is another factor in
the grocer's price. Often food pro-
duced in one farming center will be
shipped to market some distance away
and then be brought back to a town
in the heart of the farming center.
1t all adds up. The F. S. c. c. has
been trying the quickest and shortest
routes from producer to consumer.
Handling charges and packaging costs
are other price-raising items the F. S.
c. c. is examining.
The F. S. C. c. began in 1888 as a
relief agency, with movement of farm
surpluses a secondary consideration In
1885 it was shifted to the Department
of Agriculture and the emphasis was
reversed Since then it has received,
by act of Congress, 80 per cent of the
customs receipts to encourage con-
sumption of commodities by diverting
them from the normal channels"
Variety of Purchases.
1t has bought and given away all
sorts of produce-beans, apple sauce,
sirup Swiss chard, turnips, goat meat,
honey, English walnuts, cattle and corn.
The F.. S. c. c. buying has not stop
ped with food, however. 1t has gone into
blankets and sheets, cotton for mat
tresses, ticking for mattress covers, tow
cling, sheepskin coats and COAL
There the w. P. A. has taken up the
"buy- -and-give" idea. 1t has spent $10,-
100000 for 125O,OOO suits and over
coats for men and boys on relief. That
purchase represented two-year surplus
| on the clothing market, and Secretary
per cent responsible for Unemployment
of $1,000 clothing workers last summer
1t was the biggest single deal of
it's kind in the history of the business.
Even the Army and Navy-which buy
cloth for uniforms by the yard-had
nothing to equal it. Business men who
had paid little attention to the F. S.
C. C. began to express concern. If
the Government could give away food
and blankets and clothing, they asked,
why not also radios and automobiles and
even houses?
| Measure Loss in Millions.
The noted that W. P. A. bought the
clothes directly from the manufacturers.
They noted that the F. S. c. c. bought
much of its food directly from producers
and found that the commodities for
which the F. S. c. c. paid SAT, 100000 in
the fiscal year 1878 had retail value
| of $62 210,0OO-a difference of $14,780,0OO
which ordinarily would have gone to
wholesalers, jobbers and retailers if they
could have sold the stuff.
Some of them said they could have
handled it better than the Government.
| Others said the Government had to do
| it because the distribution system had
broken down.
On the latter side of the argument is
| Ezekiel, who offers his plan as remedy.
| Production could be budgeted, he says,
under the interstate commerce clause of
the Federal Constitution. Prices and
wages could be set IN annual agreements
between industry, labor and consumer,
with the Government to enforce COM
| pliance.
Would that be dictatorial?
No, says Ezekiel, it would be an ar