Detroit evening times. (Detroit, Mich) 1921-1958, 1941-10-22
johnson Hits
Politics in
Price Control
Claims All Elements Want
Sane Top Levels
BY HUGH s. JOHNSON

WIFI SNdICtly CfldfiSt III Tie
crossing of a IT. or the dotting
of an 'I". Mr.. Mckenzie King
has announced that Canada will
adopt the Baruch plan for
clamping a flexible ceiling over
all prices to prevent imitation
including wages, rents and farm
prices, rejecting our present
political fumbling with piece
meal fixing of few prices, leav-
ing the principal influence in all
prices. labor and farm prices, TO
60 free.
Mr.. King has not merely
adopted the Baruch plan, with
out any change, but he also ad-
vances all the Baruch arguments
for that plan with no apparent
variations.
AS readers OF this column
know, il has advocated that
plan. not just since this argu-
ment became hot and vocal, but
for many years before that. 1t
was not new. II has been pro-
posed by Mr.. Baruch for over
10 years as a result of his rich
experience in price control in
1918.
OPPOSITION TO II In this
" country among political lead
ers was on the argument that
labor and agriculture wouldn't
stand for it. AS. Mr.. Baruch pro-
posed it and as Mr. King has ac-
copied ii. II provided for labor
wage advances in precise pro-
portion to the rise in the cost
of living.
In this country 1t proposed the
farm price parity and not pres
ent price levels-still somewhat
depressed in some crops-as a
ceiling for farm prices. In Ca
NADIA. Mr.. King proposes farm
subsidies where necessary.
There is nothing infiexible
about either plan. Hard cases
are to be subject to adjustment
Neither assumed absolutely 10
stop price adva ces. Both
sought merely to keep them in
hand and prevent the tragedies
of sudden runaways getting
eventually out of all reasonable
control.
VET our political pundits and
l. their echoes in our war ad-
ministration wouldn't face the
argument. Their first fear was
that farmers wouldn't accept
any ceiling over their prices.
That's where they got their first
shock. Senator Thomas of Ok
lahoma. the great funny-money
inflationist, called farm leaders
together. There he learned
\ Through robust revolt that the
american Farm Bureau Fedora
ton didn't want any runaway
farm prices.
The Thomas argument was
purely political. He wanted a
new formula for farm price
parity. When il was sifted out
il amounted TO an increase in
cotton price parity and slight
reduction in other 'parities"
especially those for hogs, corn
and wheat.
1t didn't click with most OF
the farm population. Twenty
cent cotton, which was the
Thomas bait, isn't a price neces-
sary for fair return. II is a war
bonanza price and cotton prices
are our biggest headache.
An artificially high structure
has simply priced us out of the
markets of the world-which
are the main reliance of our cot
ton farmers.
ON THE labor front the argu-
" ment against some wage
sterilization was scarcely more
supportable. Leon Henderson,
who is responsible for price con-
troll, lodged most Of IL by saying
that labor policies are Mr.. Hill
mans baby.
II may be so but runaway
wage structures are the basis of
runaway price structures. Mr..
Henderson is sure TO have Mr..
Hillman's baby" on his own lap.
Hillman hasn't spoken, but
Mr.. Lubin, a great labor econo-
mist. and also a Danish econo-
mist, were enlisted TO argue
against wage ceilings. The argu-
ment reduces to weakly sup
ported dogma.
Argument or no argument. IL
is a simple fact that opposition
TO equitable and universal price
control instead of piece-meal
price fixing. is for the most part
purely political.
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