Evening star., 1941-03-09
Additional Rise
In Living Costs
Seen Ahead
Defense Heads Expect
Controls to Prevent
Runaway Prices
Special Dispatch to The Star.


NEW YORK, March S-The cost
of living is expected to rise, but de-
fense officials do not expect 1t to
get out of hand, reports Business
Week in its current issue. AS a
matter Of fact, they are well sat-
isfied with the general price situa-
ton. They believe that they have
the necessary power to keep prices
under control.
Most of the rise in the cost of
living so far has come from higher
food prices. particularly for meat,
reports the article. However, the
Consumer Division of the Defense
Commission, headed by Miss Har-
riet Elliott. attributes the boost in
meat prices less to an increase in
demand than to shortage caused by
a cyclical swing in production.
A year ago hogs were selling at
five-year lows. resulting in curtail-
ment of production. and as result
pork prices may be still higher. The
beef situation Is somewhat different,
for although cattle stocks have
been increasing, farmers have been
holding heiferS for breeding pur-
| poses. anticipating still higher prices.
However. farmers are being urged
to slaughter more cattle and raise
more hogs. and the general feeling,
as a result of this, is that beef
prices are near their peak
Situation May Change.
One thing that might cause a
really tight situation in meat prices,
says Business Week. would be in the
event that the United States starts
| shipping food to Great Britain in
| large quantities. At present it is
not likely that large supplies will
be sent abroad, since Britain would
| probably not divert cargo space
needed for airplanes and munitions.
Of course, if the United States were
to become actively involved in the
war, the situation would change.
Next to food, rent is the big item
In the budget of lower-income fam
| lilies, and although rents have shown
a tendency to rise everywhere. rapid
increases have only taken place in
areas where an influx of defense
workers has caused shortages in low
rent housing. Where sufficient hous-
ing cannot be provided fast enough,
the Consumer Division is recon-
mending local legislation in order to
maintain reasonable rents and reg
ulate trailer camps But, reports
the article. since new construction
is the only complete answer to the
problem, rents in Defense boom
towns are likely to be a headache
for some time
Most Supplies Ample.
OF the other major components of
the Bureau of Labor Statistics index
of the cost Of living, house furnish
ings are down nearly per cent from
a year ago, and clothing and fuel,
ice and electricity are at about the
| same level. Although the recent de-
ctsion to ration aluminium was
marked as the first of many defense
impacts on civilian goods, virtually
/ no other shortages of apparel or
furnishing items are in sight.
hluIllllluIIl, VI CUuI SC, Is uSeu III
wide range of consumer products
autos. refrigerators, radios, washing
machines, bottle caps, toothpaSte
tubes and tobacco wrappings. But,
states the article, it seems likely that
the placing of priorities on the metal
will result in subStitutionS rather
than in drastic price advances. For
example. cooking utensil manufac-
turers will promote glass and enamel
ware; in autos and many appliance
lines, plastics are already being sub
stituted for aluminium.
In spite of the current shortage of
aluminium, the diSlocations to man.
| ufacturers and consumers may not
be great. BY 1912 Alcoa production,
combined with that of the new plants
that Reynolds Metals Co. is build
ing, should be sufficient to take care
of all civilian and military demand.
BY filling orders out of warehouse
inventories, manufacturers of civil
ian products using aluminium may
be able to get along till then with
minimum of substitution.