Evening star., 1941-07-30

cent. 1t has increased 10 per cent
since January of this year In the
past so days wholesale prices have
risen more than five times as fast
as during the preceding period since
the outbreak Of the war abroad.
Since August, 1899, the Bureau of
Labor Statistics Index of the cost
of-living has advanced 5i2 per cent.
1t has increased 3 q per cent since the
beginning of this year. and the up
ward pressure is now intense. In
single month. from the middle of
May to the middle of June, the cost
of-lving jumped 2 per cent. During
the last quarter the increase in the
cost-of- living was greater than dur
ing any similar period since the
World War. But even yet the
index does not fully reflect past in
creases, and only in a few months
will it respond to current increases.
In 1915 the upward price move
ment proceeded unchecked so that
when regulation was finally begun
it was already too late. Now we
have an opportunity to act before
disastrous initiation is upon us. The
choice is ours TO make, but we must
act speedily.
Legislative Action
Can No longer Be Delayed.
For IL months We have tried to
maintain stable level of prices
by enlisting the voluntary co-opera-
ton Of business and through in
formal persuasive control. The ef-
fort has been widely supported be-
cause far-sighted business leaders
realize that their own true interest
would be jeopardized by runaway
imitation. But the existing authority
over prices is indirect and circum-
scribed and operates through meas
ures which are not appropriate
or applicable in all circumstances.
1t has further been weakened by
those who purport to recognize need
for price stabilization yet challenge
the existence of any effective power.
In some cases, moreover. there has
been evasion and bootlegging: in
other cases the Office of Price
Administration and Civilian Supply
has been openly defed.
Faced now with the prospect Of
int1atlonary price advances, legis-
latlVe action can no longer pru-
IDENTIFY be postponed. Our national
safety demands that we take steps
at once TO extend, clarity and
strengthen the authority of the
Government to act in the interest
OF the general welfare.
Legislation should include au-
thority to establish ceilings for prices
and rents, to purchase materials and
commodities when necessary, to as
sure price stability, and to deal more
extensively with excuses in the field
of installment credit. To be effective.
such authority must be flexible and
subject to exercise through license
or regulations under expeditions and
workable administrative procedures.
Like other defense legislation, it
should expire with the passing of the
need. within limited time after the
end Of the emergency.
The concept of a price ceiling Is
already familiar to us as a result of
our own World War experience.
Prices are not fixed or frozen: an
upper limit alone is set. Prices may
f1uctuate below this limit, but they
cannot 60 above it.
To make ceiling prices effective it
will often be necessary, among other
things, for the Government to in
crease the available supply of a
commodity by purchases in this
country or abroad. In other cases
it will be essential to stabilize the
market by buying and selling as the
exigencies of price may require.
Rent Boosts Recall
World War Situation.
Housing is commodity of uni
verSal use. the supply of which cam
not speedily be increased. Despite
the steps taken to assure adequate
housing for defense, We are already
confronted with rent increases omi-
nously reminiscent of those which
prevailed during the World War.
This is development that must be
arrested before rent profiteering can
develop to increase the cost of living
and to damage the civilian morale.
OF course there cannot be price
stability if labor costs rise alb