Detroit evening times. (Detroit, Mich) 1921-1958, 1941-05-29
Curb Due
On Rising
Living Costs
Henderson TO Be Called
10 Check Initiation
BY PAUL MALLON

itNIl XVIII hA'A III u AhNAAiNAA
dous hike in the cost of living.
Inflationary price lifting is at
hand unless the government
changes its ways. That it will
do 50, there is no longer any
doubt. The prospects are that
Mr.. Roosevelt will call in Leon
Henderson. his price commits
sioner. and order the lid sealed.
Pressures have not developed
primarily as result OF the new
farm price parity payment bill.
II is true critics refer 10 the
measure as an unjustiiied poll
tical move TO offset labor wage
increases. Also. Mr. Roosevelt
signed il with the warning that
the governments IS per cent
loans plus the cash parity pay
ments and soil conservation pay
ments should not boost the gov
ernments donation over 100 per
cent of parity prices.
Yet. no one here is contending
the bill itself VIII bring excess
sive prices. No one is really
capable of Judging what is fair
price for farmers from day to
day. But the farm bill was pre-
coded by huge government food
purchases for the army and
navy, British purchases in food
-lines,-agriculture- department
price lifting and the consumer.
larger family budget.
All these factors together
have put steam into prices
which will explode if it is not
handled.
THE army. for a prize example
Il of what is wrong, wanted
million pounds of powdered eggs.
the latter part of April TO feed
the boys on maneuvers. Bids
were sought. The British hap
pened to want about one million
pounds of the same food at the
same time.
British purchases are handled
through the federal marketing
agency of the United States ag-
riculture department. an agency
whose business has always been
to increase prices, never to hold
them down.
The bids ran higher than en-
pected, to say the least. They
ranged from So cents TO 90 cents
a pound and averaged between
SO cents and "a cents.
The defense purchasing divi-
sion protested. threw out its
bids. and sought to buy through
negotiation. The army thus OBJ
tanned the eggs for 81 cents
pound. II cents under the aver
age bid. But the marketing divi-
sion accepted the bid and paid
the higher price. tHow much it
won't tell, but probably about
10 cents a pound above the army
COST
This is only one of the many
little pressures viii ch have
helped TO lift wholesale food
prices 10.4 per cent last week
over a year ago.
SPECULATION in certain
~ commodity markets is be-
coming noticeable to the govern
ment. Some form letters have
fallen into New Deal hands indi-
eating that speculative advisory
services have been counseling
switch to commodities from the
securities market. This also may
have had something to do with
the recent price increases for
butter, eggs, coffee, cocoa and
lard.
Some inconsequential hoard
ing is likewise becoming evident.
However, any one who figures
on laying in an extra can of to-
matoes is apt TO find himself
caught short il the government
fixes the price for the next can
ming season at somewhat less
than the existing level Yet. the
rise Of steam in this line is APP
pearing also
\ y INSIDE understanding has
"A been in existence by which
Leon Henderson has avoided the
food price situation and left it
10 the agriculture department
up TO now. That department
demonstrated even before the
parity bill passed that il could
not handle the problem. II tried
10 fix a minimum price for butt
ter at 81 cents, planning to buy
at that figure and sell SURPRISES
10 diminish the price whenever
ii got very far above 81 cents.
Soon butter was at Sc cents.
with the agriculture department
policy completely lost. It's sur
pluses were inadequate TO meet
the power Of rising market.
The pressing question now,
therefore. is whether Henderson
can do any better. The signs
are clear that he will have an
early chance 10 try.
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