The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1941-10-09
CRv Staff Writer)

UUU,UUU,UUU lSdSS-1SllO OA11 10
given precedence over everything
else. the real heavy thinking is
being devoted to our home econ
omic problem.
Ever since the new taxes went
into effect. and the people began
TO feel their pinch by paying
HIGHER prices for about half the
things they buy, congressman
have been deluged with letters
demanding that they do some
thing to keep down the cost of
living.
The public, which ordinarily is
strongly opposed to price fixing
or wage-fixing by the govern
ment, is now urging such leglsla-
ton. High government officials
also are pointing out the i'm
mediate need for price legislation
to keep prices from sky-rocket-
ing.
Donald M. Nelson, recently ap-
pointed director of the Supply
Priorities and ALLEGATIONS board,
who always has been an opponent
of price-fixing measures, now
saws that the administrations
price control bill must be enacted
at once to "prevent an initiation
airy period that will completely
destroy u.s."
Secretary of Treasury Morgen-
thau, who has suggested 100 per
cent tax on all profits in excess OF
6 per cent as a means of limiting
initiation of prices, summarized
the present status of Initiation
when he said:
''The wholesale prices of farm
products have risen 81 per cent in
the past year, and Of that rise 6
per cent has occurred in the last
month.
Cali commodities have risen Is
per cent in the last year and 2 per
cent in the last month alone.
Similarly down the line; foods
are up IS per cent; hides and lea
Their up Is per cent; textiles up
% per cent; building materials
up IL per cent; and chemicals IA
per cent.
'The public is amply aware OF
what is happening. The house
wife knows that pork chops
which were 20 cents pound in
January were 80 in February, 81
in April, 80 in May, 35 in June, 81
in July, 80 August and Al at the
moment, total rise of 40 per cent
in those nine months.
Mr.. Morgenthau. as we'll as 9TH
er government officials who have
testified on the subject, all point
oiut that we can prevent infla-
ton because we know the causes
of it but that we can't do it with
halfway steps.
The whole cause of initiation
they point out is that the income
of the consuming public is in
creasing while the amount of
goods available to the consumer
is decreasing. The answer then
must be to increase the amount
of goods available to the public,
or to keep the spendable income
of the people from rising, or to
freeze prices. Mr. Morgenthau
and Mr.. Nelson both oppose fix
ing wages at this time but agree
that prices should be controlled
and that excess income of the
people should be invested in the
government either by the pur-
chase of defense stamps and bonds
or by taxation.
Mr.. Morgenthau favors a 100
per cent tax bill on all profits of
corporations over 6 per cent, be-
cause he believes this would pre-
vent profiteering and at the
same time eliminate the efforts
by labor to get wage increases in
order to share in corporation
profits. If the profits were eli
minated, labor could not seek in
creases on those grounds.
Mr.. Nelson opposes this plan,
however, on the grounds that pri-
vate enterprise has to have
profit incentive to make it work
and that small corporations would
suffer.
The Brooking institution, which
has made a study of the situation,
points out that farm prices and
wage increases have been the
chief reasons for the increased
cost of living and that the adj
ministration's proposed price con-
troll bill wouldn't control these
primary costs of initiation. It says
that sterilization of farm prices
and wages is necessary to prevent
initiation. One of this organiza-
tons suggestions is that the gov
eminent bring about reduction of
food prices by putting on the
excess food supplies which it has.
Aside from the high-price
scare, the chief subject of debate
=