Evening star., 1940-11-12
Wholesalers Warned
OF Price Increases
And Goods Shortage
Many More Billions
TO Go for Defense,
Conference Is Told

TItQlCllIlR lIldt lllc COulltIy uC-
fense program will continue for a
long time and at an increasingly ac-
celerated pace, DR.. Theodore N.
Beckman, professor of business Or
ganiZation at Ohio State Univer-
sity, asserted today that many
more billions" are yet to be spent
and that the Nation must be pre-
pared for price increases and future
shortages of goods.
He spoke at meeting at the May
flower Hotel of about 100 representa-
tives of the country's wholesale
firms called by the National Defense
Advisory Commission.
Miss Harriet Elliott, consumer
commissioner of the emergency
board, who presided over the ses-
Sions which began this morning and
were scheduled to continue through
out this evening, spoke at a lunch
con of the wholesalers. She con-
fined her remarks to outlining the
work of her department of the COM
mission.
I'VE must not be lulled into indif-
ference on this point" DR.. Beckman
said. by the fact that so far the
trend in commodity prices does not
reflect any actual or impending
shortages. After all, the expansion
Of plant is just beginning and the
actual delivery of defense materials
Is still, in most lines, relatively small
in volume.
Long g-Time Program.
Furthermore, if I may venture a
guess, | should say that our defense
program is long time program. not
an excursion for a short period of
special emergency, that it will re-
quire many more billions than have
to date been authorized. AS this
program gains momentum. shortages
will develop, sellers market will
prevail and prices will be moving
forward"
At the same time, he told the
wholesalers. that in preparing for
what he termed total defense" the
needs of the civilian population must
be met and that the defense mecha
nisms must be so regulated as 10
enable the people TO maintain their
standard OF living or. at least. to
exact from them as small a toll as
possible
The Well-knoVn economist. never
theless, did not see q bright future
for the pocketbook of John Public
Let me state at this point cate
gorically,' he said. that price boosts
must be expected; they are inevita-
BILE. So soon as demand begins to
exceed the available supply of con-
sumer goods, prices are bound 10
rise. Higher taxes and increased
labor costs will contribute to the
same end.
SkyrOcketing Deplored.
There is nothing inherently
wrong in rising prices. They always
accompany and are part and parcel
of periods of prosperity .'' what is
to be deplored is skyrocketing of
prices
The conference was called by the
Defense Advisory Commission to
learn the status and preparedness
for emergency of American indus
try and business as reflected by the
wholesale firms and associations. All
the sessions were held behind closed
doors, but various deleSates .ex-
pressed themselves to reporters be-
tween meetings.
1t was learned that many of the
wholesale groups feel that defense
will be hampered and that price
levels will be all but impossible TO
maintain unless the 40-hour week
law is al least temporarily thrown
overheard.
II was believed that this matter
of longer working hours would be
brought up later in the day.
H. S. Radcliff of the National
Council of American Importers
asserted that the import trade can
serve benefcially at this time in
that it will be a check to rising
prices in certain lines. He men
toned as an example Australian
wool and other products from the
United Kingdom which are still
coming into this country in quantity
despite the war.
Reserve of Frozen Foods.
DR.. ]. H. Frederick. economics pro-
fessor of the University of Texas,
said that frozen foods are becoming
more and more popular in the south
west section of the country. He said
such foods are valuable in respect to
defense because great quantities are
being stored in existing space.
Another representative to the con-
ference said that as of October l
there were 242,0O0000 pounds of
frozen fruits and vegetables IN
storage. more than 10000 900 pounds
of poulary and 13O, ,621 900 pounds of
shell-less eggs.