Evening star., 1941-09-29
BY the Associated Press.

DS lHV F1sSVNiotth L ltoH.
Mariner S. Eccles, expressing
fear that the Government might
be forced to resort 10 the very
system that We would like to see
defeated" in order to prevent inf1a-
ton, suggested today that a CEN
tralized labor organization be Gre
ated to work out with the Govern
ment a Nationwide schedule of
prevailing wages" for the duration
OF the emergency.
The chairman Of the Federal Re-
serve Board made the proposal to
the House Banking Committee In
response to a request by Chairman
Steagall for specific plan for con-
trolling wages.
Mr.. Eccles had told the commit
tee earlier that Congress could not
be realistic about controlling in
flation if it permitted wages and
salaries to rise indiscriminately
He testified in favor of the admin
istratlons price control bill.
Urges Greater Capitalization.
[hNcNA AAli5 tll1l OllN vi iIlC
culties in dealing with the labor
problem was the great decentraliza
ton Of its own organization, Mr.
Eccles said. I'm wondering If. in
the interest of labor. a greater
Capitalization of labor organiza-
tions could be accomplished so that
the Government could work out
with that agency a schedule of pre-
vailing wages which would be q
base until there was justification
for a change.
To-day there is no yardstick. no
pattern. The situation is more or
less chaotic"
Discussing the problem of effect
ing economic controls on a volun-
tary basis, Mr.. Eccles said that in
order to be successful in the de-
fense effort, I'VE may be forced to
resort to the very system that we
would like TO see defeated"
Main Factors in Prices.
Recommending prompt enactment
of the price measure, Mr.. Eccles said
wages and salaries were the main
factors in prices. His view that
they should be controlled during the
present emergency conceded with
that of Bernard M. Baruch, World
War head of the War Industries
Board and recent witness before
the committee. Price Administrator
Leon Henderson. however, has con-
sistently opposed their inclusion in
the price bill.
Mr.. Eccles also told the committee
that industrial strife during times
of national peril was "intolerable, u
because every unit of the Nations
productive machinery was needed
for defense and civilian needs.
He included attempts to settle
labor disputes by the methods Of
lockouts and strikes in the ''intol-
cradle" category.
Would Dampen Civilian Demand.
Next to procuring maximum pro.
duction, he said, the most impor-
tant economic aim of public policy
at this time, is to dampen civilian
demand for goods which cannot be
produced in sufficient quantities.
I'VE cannot leave this to chance
or voluntary action on the part Of
the buying public" he said. "Tht
inescapable result of letting the
situation take care of itself woulc
be a price imitation of staggering
proportions and demoralizing effects
upon our economic system.
The situation can only be dealt
with effectively by a co-ordinatec
and comprehensive series of Gov
ernment measures of which the
bill you are considering is an essen
tial part"
Although he said he favored the
use of broad, overall functional con.
trolls such as taxation, fiscal anc
monetary policies in dealing with
either imitation or deflation, Mr.
Eccles characterized the pending
bill as ''the most important measure
of direct price control and should
in my judgment, be sufficiently
broad and flexible for wide admin
istrative discretion in dealing with
future contingencies.
Mr.. Eccles told the committee he
was fully in accord" with the taxa
ton policy outlined by Secretary OF
(See ECCLES, Page A-4)