Evening star., 1942-07-05
Fight for Funds
May Endanger
First Break Appears
In Ceilings During
Week S Struggle
BY JAMES MARROW and
WILLIAM PINKERTON,

Success or failure of the pres.
ent prlce-control program may hinge
on the outcome of the tug g-of- wal
over funds this week between Con-
gress and Price Administrator Leon
Henderson who. in the midst of the
struggle, permitted the first real
puncture of the ceilings.
Henderson told a Senate Appro-
priations Subcommittee that unless
he was given larger staff there
would be utter disorganization and
anarchy In the distribution OF
scarce commodities as supplies run
out"
The battle started after the House
had cut the Office of Price Admin
istrations funds for the fiscal year
starting last Wednesday, TO s75,-
100000, which Henderson said would
reduce his present staff of 34,576
persons to $500.
He urged the Senate to restore
OPAS funds to the $161 600. 900
approved by the Budget Bureau
which Henderson said would have
permitted him to employ $4,000 per-
sons to carry out price-control Or
ders.
Permits First Break.
While the argument continued
Henderson permitted the puncture
of the ceilings-establish at the
highest March levels-by authoriZ-
ing increases in the retail prices of
the 1912 pack of canned and dried
fruits by as much as IS per cent
and possibly more"
He gave two reasons for the au-
thorization which he acknowledged
as a serious setback.
Congressional inclusion of the no.
per-cent-of parity formula for farm
commodities in the Price Control
Act and refusal SO far to sanction
governmental price ceiling subsi-
dies as charge against the war
effort.
On top of this it was learned
Henderson had warned a House
committee a general rationing pro-
gram might have to be imposed
upon the entire country, foreseeing
need to ration Is major groups OF
new items in addition to the six
already being rationed.
In the meantime Congress itself
got into a 4-to-4 deadlock among
Senate House conferees over a
number of disagreements in the
Agriculture Departments $3.50, ,000,-
nm iof io,, ~,
The principal obstacle to agree
ment between the groups repeatedly
was an administration request for
authority to sell wheat at below
parity prices if necessary.
War Cash Provided.
Money for direct war purposes
found Congress in a more generous
mood, completing action on six sup
ply bills aggregating more than
$4,000 100000 and ranging from the
record-breaking S42.800,0 100000 Ar
my appropriation bill to $2,500, 900
measure earmarked for District of
Columbia housing.
For the first time in history
starting July 1-priyate and pub
lie property in the United States
was insured by the United States
against war damage resulting from
enemy action.
Created by Congress as a sub
sidiary of the reconstruction
Finance Corp, the War Damage
Corp. will do the housing.
Secretary Morgenthau disclosed
the Treasury had spent a record
total of $25 ,953 ,665, ,954 for cash war
expenses during the fiscal year end
ing last Tuesday at midnight.
I'VE expended approximately Is
per cent Of the national income for
the war effort and in the fiscal
year of 1943 the contemplated war
expenditures will represent about 55
per cent of the national income.
He referred to a Budget Bureau
estimate that the war in the new
fiscal year would cost the Treasury
$67 ,000, 100000.