Evening star., 1941-11-30
j. ). Will Watch
Rigid Canadian
Price Control
Plan Storts Tomorrow,
Many Teeth Pulled
From Bill Here
BY FRANK MacMILLEN,
Associated Press Business Writer.

Washington still echoed today to
Fridays passage by the House OF q
limited measure to control the
country's prices during the emer-
gency, our neighboring government
at Ottawa quietly took the final
steps to put into effect Monday
Canadas drastic overall price cell
ing law.
The American measure, with many
OF its teeth pulled in the nearly
four months Of debate since it was
introduced, now goes to the Senate
for further tinkering.
Meantime the House this week
had rejected the Gore bill, which
resembled the Canadian law in that
1t sought general top on all sorts
Of prices.
At Ottawa the machinery was
readied to enforce law which pro-
vided. with technical exceptions
that no goods in the Dominion
could henceforth be sold for more
than their average prices during the
period September l5-October II this
year.
Experts Are Divided.
Students Of price controls pre-
pared to watch the Canadian ex-
pertinent closely. for there has been
cleavage among them as to
whether a general freezing Of prices
were feasible.
Our approach to prices here has
been through freezing Of relatively
small group Of highly important
materials. method which has been
called "piecemeal" or "selective"
But q substantial group. to which
Bernard NJ Baruch. chairman of
the War Industries Board in the last
war. has been a sort OF elder states
man and adviser. has contended
that only the ceiling method could
succeed in the long run.
Canada's upward spiral Of prices
has been considerably sharper than
anything so far experienced here
and observers declared both bust
ness and government there had ap-
peared correspondingly alarmed at
the prospect Of imitation and reader
to adopt drastic methods to check 1t
Wholesale prices in Canada have
risen nearly 81 per cent from the
outbreak of the war and the angle
OF climb has been much sharper in
recent months. At the same time
the living cost index has advanced
roughly IS per cent. with the all
important food component up more
than the general average.
United States Rise Smaller.
In about the same petroleum
figures are a little more recent-the
official indices here show wholesale
prices averaging about 2l per cent
higher and the cost Of living up
about 10 per cent. Clothing as well
as food prices have moved notice
ably faster than other living items
In both countries the lag Of liv-
ing expense behind wholesale prices
has been an outstanding feature of
the spiral.
Canada now has frozen this rela-
tionship at the late September sta
tus.
One OF the questions interesting
United States price experts was
the extent to which living costs in
this country might catch up to the
wholesale rise while price control
measures were debated in Wash
ington.
1t was pointed out most of our
"piecemeal" control had been di-
rected at key industrial commodi-
ties, with important raw foodstuffs
left largely to climb as they pleased
But, it was noted. farm commodi-
ties enter more directly into living
costs and take a far larger part of
the average mans income than the
kinds of prices on which We have
spent most of our control effort.
Strict Enforcement Foreseen.
Financial men here acquainted
with Donald Gordon, deputy gCv-
ernor Of the Bank of Canada, who,
as newly appointed chairman of the
Wartime Prices and Trade Board,
will enforce the regulations, were
willing to bet the law would get
strict and vigorous application.
The stubborn-chinned central
banker, who peers through rimless
glasses with steely eye, is known
here as a tough mar.
Gordon, in announcing his plans
for enforcement this week, said
Business as usual has disappeared
but In a war for existence every
producer and distributor has a great
job to do in maintaining the flow
Of goods and services as fully ss the
circumstances Of war viii permit.
Those who take part in this work
will not be deprived OF reasonable
remuneration. The board has no in
tention Of allowing any essential en-
terprise to be forced TO the wall by
the imposition of price control.
Nevertheless profits will undoubt-
edly be reduced and those who are
in the best position to do so will
have to make the greatest sacrifices
In the general interest"