Evening star., 1941-10-23
Prices
Continued From First Page

price legislation and we need II
fast" Leon Henderson, price admin
istrator, yesterday told President
Roosevelt that I'VE have not reached
the state where we need or could
wisely adopt the drastic control
which Canada has instituted"
Canadas Plan Called Experiment.
He said that Canadas decision to
adopt price and wage ceilings was a
drastic experiment" depending
largely for success on efficient price
stabilization in the United States.
The economy of the two countries
and their price levels are closely in
tertwined, he amplified.
: But we do need legisla ton which
will at least enable us to do what
Canada has been doing for the past
two years" he continued. IF we act
promptly we may yet be able to fore
stall more far-reaching regimenta-
ton. Our emergency price control
bill is program for the immediate
future"
MIR. Henderson's statement EN-
Bodied in memorandum to the
President provoked immediate criti-
cisn from three members of the
HoIse Banking Committee. A state
ment by Representatives Gore, Dem
ocrat, Of Tennessee; Monroney, Dem
ocrat, of Oklahoma and Crawford,
Republican, of Michigan declared
Mr.. Henderson was advocating a
futile plan to prevent imitation,
adding that he wanted "piece-meal,
selective price control" and that
this had failed in the last war Mr.
Gore is the author of bill which
would fix ceilings for all commodity
prices, rents. wages and profits.
No Mention Of Wage Ceiling.
The memorandum which Mr.. Hen
derson sent to the President did
not mention wage ceilings as affect
ing the United States. but noted
that Canada did not freeze wages.
"She took a base period and re-
lated increases to the cost of liv-
ing" he said. "As a matter of fact,
this was done in war industries as
EdI4y DO oCCCLIlUcl, 10fU.
. "Once the first step had been
taken an extension of the policy
was inevitable: First, because
civilian industries were left free
to bid labor away from vital war
work; second, because the bonus
system in war industries alone was
operating unfairly to the Govern
ment the trouble was civilian in
dustries would increase both wages
and prices. This resulted in sharp
increases in the cost of living, which
! in turn increased the bonus that
the Government had to pay in war
industries. 1t was obviously un-
fair to leave the unrestrained pri-
vate employers to compete with the
Government outside the bonus
system"
! Canada is putting ceiling over
all commodity prices, both agri-
cultural and industrial, from the
producers through the retailers, at
the highest price which each seller
received during the month ending
, October Is, 194l," the memorandum
continued. Many services, as we'll
as all utility rates, will also be
under the ceiling. All rents are
being frozen as of date to be
specified"
| Mr.. Henderson told the President
that more than a per cent of Ca
madam production resources now
are being devoted to the war effort.
compared with approximately Is per
! cent OF the United States resources
! now modified for defense.
He asserted Canada was eco
nomically and psychologically pre-
, pared for the drastic price-wage
controls, first because the Nation
was at war and second because taxes
were high and profits and returns to
shareholders diminishing.