Evening star., 1942-05-17
Ration, Not Bread, Lines Due
AS Goods Approach '32 Level
Henderson Aides, Worried by Probable IL Billion
InAationary Cap Urge Forced Savings
Plan to Protect Price Ceilings
By Marquis ". ChiIds.

BY the end of 1s43. according to Price
Administrator Leon Henderson. the con-
sunling public In this country will be
able to buy only as much in goods and
services as was available at the bottom
Of the depression In 1882. But the pub
lie will have twice as much money to buy
1t with and 1t Is this inflationary gap
goods available-which Is keeping Hen
derson and his assistants up nights.
When Henderson used the comparison
between 1882 and what 1943 promises to
be like he confused many people. As he
and his assistants have since tried to
impression that conditions next year
would be similar to conditions at the
bottom OF the depression. 1t is merely
that measured statistically the total
volume Of goods manufactured for con-
sumers promises to be the same in the
war boom future as in the depression
past.
In 1882 unemployment and low farm
prices had robbed q very large portion
OF the consuming public Of their pur-
chasing power. Perhaps as many as q
hall Of all American families had hardly
enough to buy food. They had no money
for new automobiles. refrigerators. radios
and even for clothes.
Durable Consumer Goods Out.
IN the boom year OF 1928 the auto
mobile industry produced 4,358,759 cars.
AS the downward spiral Of depression.
which had begun in 1925. gathered mo-
mentufn this was swiftly reduced. The
figure for 1882 was 1,37o,e7s.
While one-haH, or virtually one.half,
Of the population had been impoverished
in 1882, there were stil people with large
incomes who could buy anything they
wanted, including large, expensive motor
cars. It is just here that the difference
between 1882 and the prospect for l943
comes in. No one, with minor exceptions,
will be able to buy new motor car at
the end of 43 or a new radio or a new
refrigerator or new vacuum cleaner.
Those durable consumer goods are no
longer manufactured. That Is a sizable
GdhcIl UuU VI WlldG ID dSdldblC IOl
John Doe and his family The factories
that were making autos and radios are
making tanks and airplanes.
In 1882 the average amount Of goods
available for each individual was equiv
alent to $370. That is, taking the whole
pile of food, clothing, shoes, motor cars
and so on and dividing it by the number
of millions of people you get an amount
equal to a money value of 1870 That is
the size of the slice of pie-measured in
the same statistical fashion-that each
individual will be getting at the end Of
1s43.
Incomes Nearer Equality.
In 1943 incomes will be far more nearly
equalized than they were in 1882 Almost
every one who can work will be working
next year. Wages, with overtime, will be
comparatively high. At the same time
through drastic new taxes big incomes
at the top will be more radically cur
tailed than ever before.
President Roosevelt in his recent fire.
side talk and message to Congress asked
that taxes be applied which would make
~ ALpOSSAolC lol dily oiiC W lidNC idl SCl
net income than $4,000 year. That Is
approximately the British maximum.
No one, probably not even the President
himself, believes that Congress will go
that far this year. Persons with large
incomes may be allowed to keep as much
as $4,000 or even $4,000.
II persons with top incomes have any
money lett over after they have paid
for the upkeep of their estates and the
hire of their servants and, incidentally,
servants will be more expensive and
harder to get under full employment,
they can buy what luxury goods are
available.
If man wants an Oriental rug or
Georgian silver service and can pay for
1t out of either income or capital he can
buy 1t If he can find it on the market.
Neither rugs nor silver services are being
imported and they will not be imported
until the end Of the war, but If men and
women in the luxury class want to go on
exchanging such goods among them
selves no one will object. In England it
Is reported that many families who can
not sustain former standards out Of