Detroit evening times. (Detroit, Mich) 1921-1958, 1941-04-22
BY HUGH S. JOHNSON

THE almost unanimou5 press
= and editorial query on Leon
Henderson's bold ceiling over
steel prices was:
"How can you do that and not
put a ceiling over both wages
and the price Of everything else
which contributes not only TO
the cost Of steel but also to the
great composite of all prices
which makes up the price Tor
cost OF living:"
The answer TO that one is
easy. 1t is;
"You can't"
Nobody knows that better
than Mr.. Henderson. But
start had to be made somewhere.
and he moved courageously and
Immediately to start where it
would do the most good. He did
it intelligently on a formula that
must govern all price ceilings
"Stop here; II there are cases
OF individual hardship. bring
them in and we will permit adj
justments to prevent cOnfisca-
tiOn."
The only other way is to let
all prices skyrocket - as they
will in war-and try to punish
the unjust profiteers as their
prices get too far ahead.
THAT is locking the stable
l. after the horse is stolen. it
is losing any possibility of con-
troll in the torrential whirlpool
of imitation.
Once that process starts in
all its infinity of infiniteSimal
streams. no matter how strong
the control. it is like a lion roar
ing against a great swarm of
locusts sweeping downward to
overwhelm him. A few stick in
his name or are even swallowed.
but the swarm drifts over him
and he is powerless to check it.
Mr.. Henderson could stop this
principal stream of inflationary
influence for long enough to
look around. by various Indirect
neutrality-suspicious. of trans
portation and supply and the
threat of Communicating
He couldn't stop them all be-
cause he has not sufficient stat
utory authority. He should be
granted that authority without
one day of unnecessary delay.
TT is simpler than II sounds.
L Here is the form of statute
offered in 1881 by B. M. Baruch,
a man who has more personal
wartime economic experience
than any other living person. 1t
authorized the President to set
a day, the entire existing price
structure of which should serve
as a ceiling" and then provided
that thereafter
1.-THE highest market price, as
Of such proclaimed day, at any
place within the United States,
for any service, right or thing,
except for the fee estate I'm real
property, shall be deemed
the fair market price for the
same or a similar service, right
or thing at the same place or I'm
similar circumstances and
thereafter 1t shall be I'M
lawful for any person to buy, sell
or otherwise contract for any
service, right or thing at a price
higher than fair market price in
effect as Of such day."
TIIIS is no freezing" of
L prices or fixing" of prices
except as they were fixed" by
normal economic influences be-
fore abnormal war influences
moved in to distort the normal
price pattern. 1t merely fixes
ceiling" over both prices and
wages. They will fall as they
may beneath that ceiling.
If any of the groups can show
a real justification for an in
crease in price of their product
above that ceiling - and many
can-thc proposed statute pro-
vided for that by simple and
swift procedure.
The "expository" statute also
/ proposed methods for the i'm
MEDIATE rectification with lust
compensation" of any inadvert-
ent or incidental confiscatory
effect of its application.
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Reproduction in whole or in part
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