Evening star., 1941-08-04


Among provisions considered are
imposition OF ceilings on CON-
modities, adjustments to enable
business to continue operations,
rent regulations, holding do,Dn
farm prices after they haze
reached parity, and iSSudnces OF
licenses as means of enforce
ment.
By the Associated Press.
The House Banking Committee
which had arranged to start hear
ings on the administrations sweep.
ing price control legislation, today
postponed the public session unit
tomorrow because of the inability Of
Price Administrator Leon Hender-
son. the first witness, to appear.
Demands by farm bloc for mini
mum as we'll as maximum prices or
agricultural products and assertions
by House Republicans that the law
also should control wages and credit
buying made it probable that the
hearings would be lengthy.
Under the bill as it now stands the
President could fix no ceiling on
farm products below ITO per cent OF
parity or below the July % level
whichever was higher.
Fixed Minimums Urged.
Senate farm leaders sought to
raise the ceiling to 100 per cent of
parity prices and to provide definite
minmums for various agricultural
commodities.
PARTY prices are such as
would give farmers the equivalent
income from their products in
terms of other commodities, as
the products would have brought
during a designated base period,
in most cases, 1909-140
Representative Wolcott, Republi-
can, of Michigan, senior minority
member of the ranking committee
and chairman of a Republican price
control study committee, agreed
with his colleague, Representative
Crawford, Republican, of Michi-
gan, that there should be complete
economic controls if any were to
be enacted.
Regulation of Wages.
However, Mr.. Crawford told news
men it might be possible to enact
the pending legislation in some
form and amend it if it appeared
to be unworkable.
Senator Nye, Republican, of North
Dakota, said he could not believe
that any price measure which
exempted wages could be effective.
He added that If that exemption
were retained there also should be
complete exemption of farm prod
ucts.
Representative Martin of Massa-
chusetts, the Minority leader, in
appointing 15-member Republi-
can study committee, declared:
1T is obvious we cannot tolerate
runaway prices in the Nation.
There is undeniable danger that
price rises might become not only
excessive, but very dangerous to
the economic -seettrity of the country.
On the other hand, there exists
grave danger, if the administration
OF price controls were not very wisely
and very carefully exercised, Amer
lean farmers might find themselves
squeezed; American labor might
find itself damaged; those with fixed
incomes, and those who work on
salary basis might find themselves
ruined, or enduring great and un-
necessary hardships. Industry itself.
which must provide employment for
the people, could be wrecked by un-
wise price control administration.
Requires Careful Study.
Certainly the whole power of
price control-particularly If oper-
ated in connection with or coupled
with priorities control-must be
very carefully studied and watched
by the Congress.
Il have, therefore, today, named a
Study Committee, not
only to study the question of price
controls before passage of proposed
legislation, but to watch carefully
the administration of price controls
If such legislation is enacted.
Price control is always a highly
dangerous step. The welfare of the
Nation demands we proceed most
carefully in considering legislation
Of price control powers, and that we
maintain the closest possible scrutiny
Of the administration of those price
control powers if they should be
authorized"
Meanwhile, the Foreign Policy As
ISOLATION, privately funded re-
search organization, issued a report
which said that Great Britain's
efforts at price control and economic
would be of interest
10 the United States.
Covers Wide Range.
The report said that Britain has
sought to control the price not only
Of food, regarding which the prin-
ciples of rationing and price fixing
are being steadily extended, but also
of most other goods and services.
Under the Price of Goods Act of
1899 the government was author
zed to fix prices of certain COM
nodities at the level of August 81,
1899, or to permit reasonable in
;reases owing to higher costs.a
This measure, the report said, was
in June, 1941, by legis-
alton setting maximum prices for
laundering, second hand |
'ales and other services, an action
made imperative by the rationing
If clothing and u per cent rise
n clothing prices between Septem-
Der, 1899 (the outbreak of the war; |
md March, 1941.'
The general cost of living, which |
increased about % per cent during
his period" the report said, was |
llso checked through the control |
# electricity, gas, water and fuel |
ates; control of shipping and trans
,ort rates; control Of rents, which |
lave increased only per cent since |
he outbreak of war, and control of |
aw material prices and retail prices |
,ther than foods"