Evening star., 1941-11-23
5peedyApprova|
.0f Price Curbs
Declared Vital
Revised House Bill
Called Even Weaker
Than Original
Special Dispatch to The Star.

NEW YORK, Nov. 22.-The price
control bill originally introduced by
the Office of Price Administration
and Civilian Supply now the Office
of Price Administration was criti-
cized at the time of its presentation
as wholly inadequate, it is pointed
out by the Standard & Poors Corp.
Now, after long hearings, the House
Banking Committee has prepared a
revised bill which would be even less
effective on controlling prices.
There is no question of the urgent
need for some comprehensive system
of price control to insure the success
of the defense program.
Congress, the administration and
most segments of the population are
convinced of the need of halting, or
at least greatly retarding, the up
ward treno of prices before 1T
reaches inflationary proportions.
But there is no general agreement
on the form which such control
should take, nor on its scope.
IUOu IitSS Sp -Noots
The chief complaints from the
public at the present time are in re-
gard to those commodities which
Congress has done most to force up
ward in price-agricultural commod-
tiles. The S. p. A. B. just recently
warned the Associated Grocery Man.
ufacturers that food prices must not
be allowed to rise much above their
present level.
Yet margins of food professors are
so narrow that they can absorb little
cost increase in their raw materials,
and their prices are consequently
directly dependent on farm prices,
which a powerful congressional bloc
is trying to maintain free Of all ef-
fective control
For the most part, there is still
general disposition TO feel that. While
the initiation threat requires general
price controls. exceptions should be
made wherever such price controls
directly affect the individual or
group concerned.
This is particularly true OF or
ganized labor, which wants all prices
regulated but no control over wages,
and OF that section of the farm pop
ulation for which the congressional
agricultural bloc speaks, which
wants ceilings on everything but
farm prices.
Interested in Votes
Cotton Congressman and profess
sional labor leaders are, in many
cases, fully cognizant of the lnfla-
ton danger of excluding certain
prices from general control They
feel, however, that there are more
votes-either in congressional or in
union elections-in pointing out the
rise in dollar income Of their con-
stituents than in maintaining the
purchasing power of those dollars.
1t is difficult to organize public
sentiment behind effective price
control legislation because the pub
lie generally measures all things in
dollars and does not understand the
relatively abstruse economics of pur-
chasing power.
The recent sharp rise in the cost
of living has increased the senti-
ment for price-control laws, but. in
general. the reaction of the public
to rising living costs is TO ask, first,
for higher salaries and wageSwhich
push costs, and hence prices, up
fIIrt hor onJ fbo,, N irc;ct nm eov,, a
Government action to reduce prices
without knowing or caring whether
that is consistent with the demand
for higher income.
Those in Washington who are de-
liberately delaying price control leg
islation until the public demands 1t
are taking a serious risk that the
demand will not appear until infla-
ton is 80 far advanced as to be be-
yond control
Even if it is possible to call halt
later. every days delay increases the
cost of the defense program and in
creases the risk of creating malad-
justments which reduce real income,
in terms of purchasing power. If
effective price control is to come in
time, it must be enacted by those
who foresee the inf1ationary dan
gers before the public generally has
walked up to them.
RatiOning Need Seen.
We can take it for granted that
the present limited price control Of
o. P. A. will eventually be succeed
ed by a greater degree of control,
with specific congressional authori-
zation, but Il is impossible to fore
(See PRICE CONTROL, Page CD