The Wilmington morning star., 1941-02-23
PRICE INITIATION
HELD IMPROBABLE
Rustness and Government Join
To Avert Needless
Increases

Al this point IN the progress OF
the last World war, commodity
were OF the move, and an
sn1atonay spiral which viii be
.ong remembered was gathering
force. Placing reliance On history
a1one would lead to the belief that
q rising cost Of materials OF INDUS
tv is Slated for 1871. From the
present viewpoint, however, il can
almost be stated fatty that no such
trend will play a part in tie next
twelve months Of American history.
Reasons for this statement are
From an immediate stand
point, the most important reason
IS that Americas capacity to pro-
cuce most raw materials is well
above the current rate Of use, and
only psychological forces could set
Of a boom. AS the defense pro-
gram and the industrial aid TO Brit
ain progress, however, this reason
viii gradually disappear. It will be
replaced with a determination on
the part Of business and the ad-
ministration alike that no real
commodity initiation shall disrupt
our economy. Such. a determln-
a.iok is already evident.
Price Control Moves
Demand for copper has been as
strong as that for any commodity.
In the World var period, prices
were allowed to move up as con-
sumption increased, so that pro-
gressively higher and higher-cost
productive facilities would be
worked. In the present instance,
the government has arranged to
purchase a part Of industrial re-
ouirements from Chile, where
American-owned copper mines can
yield the metal at a cheaper rate
than our domestic mines. The four
cent per pound tariff levy, origin
ally placed on imports for the pro-
lection Of domestic producers, will
be paid by the government to the
! government, thus washing itself
out. Then, according to the plan,
the foreign copper will be supplied
to American users at the prevail
ing domestic price with a profit to
the government. Thus the open
ing Of domestic high-cost mines
will be postponed.
Each commodity is a problem
unto itself, and the formula which
works so neatly for copper may be
entirely useless in another in
stance. Still the determination is
there to handle each commodity in
the best possible way. As the ne
cessity asserts itesef, government
control Of prices appears to be
ahead.
Lumber Prices Problem
Up TO the present time, the only
increase in prices that has drawn
attention and disapprobation is that
in lumber and other building ma
terials. Fundamentally, there is nc
reason for a shortage Of lumber,
but the s~uddenness of the demand
for the construction Of environments
as well as a full-fledged boom in
industrial construction threatened
existing supplies on hand, and the
time-factor involved in replenish-
ing that supply has led to a bidding
up Of prices. Given time, there is
a possibility that this particular
situation will straighten itself out.
This is probably the reason that
no strong action is as yet launched.
Watching English Effort
Wholesale prices in England
have increased in the past year by
an approximate 40 percent. AS yet
no control measures of a compul-
sorry nature have been placed in
effect, although complaints have
peen heard and agitation for in
creased wages to offset the higher
cost Of living is becoming a prob
lem. 1t appears likely that price
control moves will soon be insti-
tuted there, and our observers are
ready to report on effectiveness of
such measures as are instituted,
for Jul own future use, II neces-
sery.
One field In which no problem of
high prices is likely to create trou-
BILE is that Of agricultural prices.
AS Is we'll known, the warning coun-
tries have limited their purchases
Of such commodities in this country
in favor Of industrial products, and
have succeeded in filling their
needs in countries where British
pounds are accepted. Consequent
ly, our cotton problem is one of
ever-increasing SURPRISES, which
even a record rate of domestic con-
sumption has failed to alleviate.
Grains and hogs are over-supplied
also, to a lesser degree.
Rather than support these prices
artificially, the Department Of Ag-
riculture now expects to allow
them to seek a more nearly nat
ural level, and make up the differ
ence through an assessment on do
nestle professors. There are indi-
cations that this plan has not been
generally accepted by the various
farm organizations and it's status
is therefore in doubt, but If it Sue
ceeds, the crop loan program will
be strapped. Net cost to the manu-
facturer or consumer, however,
should be little changed under Ell
Their system. l