Detroit evening times. (Detroit, Mich) 1921-1958, 1941-09-29
Acute Shortages
Face Civilians,
E((Ies Warns
Lockouts. Strikes
Intolerant at
This Time, He Adds
By GRmFING BANCROFT
Ini1 News service STAR corTesPoHdcu

Int1 News service star Correspondent
WASHINGTON. Sept. 20.
Warning that the civilian popula.
zion must prepare for further
"acute shortages OF non-miltaIy
commodities. Mariner Eccles,
chairman OF ;he Federal Reserve
Board. today told Congress that
"lockoutS and strikes are intoler-
able in times Of national peril
TeStifyng before the House
banking ana currency committee,
EccleS pleaded for speedy approval
II Of the administration price con-
| troll hilI as an essential part ot 4
broad government program 10 pre-
vent initiation.
A poll OF the House banking and
currency committee indicated that
the group viii vote about u TO 9
in favor of Selective price con-
troll bill along the general lines
recommended by The adminlstra-
ton.
Meanwhile, The BrookingS Insti-
tuition. warning of a vicious spiral
of rising costs y said that the Adj
ministration bill IS inadequate TO
meet the situation and called for
reduced prices Of important farm
products and control over wages.
The Brookings Institutions study
found that the u per cent rise IN
wholesale prices IN the last two
wears was due chiefly 10 increases
in the prices of agricultural
products and 10 higher hourly
wage rates. The institution S report
said:
agricultural price rises, the
study found, are due primarily
to government policies, and not
10 conditions of supply and de-
mand.
COSTS SPIRAL
"The effect OF these policies is
cumulative. and Is already re-
sulting In an upward spiral of
costs and prices with disastrous
effects upon large segments of
the population.
THE agricultural price rise OF
approximately one-third I'm the
year ended June 80. 1871, Is con-
trasted with relatively small
advances i'm other important
commodities, such as metal and
metal products which lie at the
center of the defense demands.
Farm product prices have
gone up because of government
price guarantees, made effective
BY loans in the case of staple
crops and by purchases I'm the
case of certain other products
required for the lend-lease pro-
gram or as stock piles for post
war European needs.
BRINGS SPECULATION
"The governments announce
ment that prices Of many farm
commodities will be maintained
at not less than IS per cent Of
parity until the end of 1912,
coupled with the provision in the
price control bill which bars any
ceiling on farm products at less
than ITO per cent of parity, has
stimulated spec ion for
further rises on the part Of both
farmers and professional specu-
lators."
Full effect Of higher agricultural
prices at wholesale have yet 10
be reflected in retail prices, due TO
the normal lag in readiuStment
all along the line, the report said.
Wage costs we're advanced by
s0-hour-week legislation with time
and a half for overtime. the re-
port said. adding that shortages
of skilled labor have pushed
hourly rates up. and:
1.-THE policy of the national de-
Tense mediation board. in APP
proving wage increases in most
cases that have come before II,
has figured Importantly"
The real income of farmers
fdollar income with allowance for
Increases in living COSTS. the re.
port said. has increased about sc
per cent. Real wages in manu-.
featuring were said 10 be up about
% per cent. while manufacturing
profits have risen about 16 PEI
cent.
Other groups, the study found
have suffered by price rises These
groups were said 10 be un.
organized employees in retail trades
small business enterprises, farm
labor some 5000 600 federal state
and local government employees
and large numbers Of profeS