Evening star., 1942-07-26
Labor and Farmers
Getting What They Con
By OUen L. Scott.

BOtn workers ana farmers are taxing
advantage Of war to improve their rela-
tive positions in this country. Each
group Is forcing Government to guar
antee. parity" of income and of pur-
chasing power for the members of its
group.
Workers are assured of two things.
One is Government support for wage in
creases to assure an hourly wage that
will, at least theoretically, buy as much
as 1t would buy on January /, 1941 The
second is Government protection of un-
ion organizations by giving unions the
right to force discipline of members who
fail to keep up their dues. A check off
OF union dues is given in some cases.
Farmers, at the same time, are given
protection against rigid ceilings on farm
prices. This assures that they can re-
ceive a very high return on those COM
modities that are being pushed to higher
price levels by rising demand At the
same time, farmers are to be assured of
parity prices on the five basic farm
crops-wheat corn, cotton, tobacco and
rice-some of which are In oversupply
and now are priced lower than "parity."
Parity for farmers is price level for
each affected commodity that will assure
a purchasing power for that commodity
equal to the 1910-1914 purchasing power.
For example a parity price for bushel
of wheat would be price that would
buy as much in the way of clothing,
machinery and other things that farmers
buy as it would in the period before the
last war.
These guarantees for workers and
farmers are coming at time when each
of the affected groups is better off than
ever before in history. Labor's income
today, both in dollars and in relative
purchasing power, Is the highest on
record. Farm income in dollars equal
the level Of the imitation year 1919 when
it reached $4,000, ,000,0 900, and that in
come in terms of purchasing power is
far above 1919 because each dollar today
buys far more than 1t bought then.
However, farmers and workers are out
to get what they can while the getting is
good. They are in very favorable posi-
ton to make demands at this time be-
cause an election is approaching. The
group now in control of Government has
based this control, and the power that
goes with 1t. upon farm and labor votes.
It expects to retain this control in Con-
gress by catering to the same groups to
which it has catered successfully in the
past.
Two problems grow from the present
situation. One is immediate It con-
Germs the effect that rising income in
the hands of workers and farmers is
going to have upon prices when that in
come bumps against an inevitable de-
cline in the volume Of industrial goods
that is to be available. The other prob
lem is long-range. It concerns the effect
Of present guarantees upon the situation
that will prevail after the war when the
country tries to return to something ap-
preaching normal in its economic or
ganization.
In modern war, once the war really
settles down. money takes on much less
meaning. The reason is that while in
dividuals have dollars in record numbers
they find difficulty In using those dollars
to buy the goods that are available and
prices tend to shoot up. This same
scramble for goods tends to give an ad-
vantage to hoarders and to other people
who are able to get first call on the
goods that are available.
Out of that situation, In turn, grows
more and more rigid price control. Out
Of 1t, too, comes need for more and
more rationing Of available goods. Only
in that way can some element of fairness
be provided in the distribution of the
commodities that people need. The new
concessions to workers and farmers only
speed the day when the United States
will join Great Britain and Germany in
a system Of rigid state controls over the
whole system of distribution.
In Britain and in Germany, money
now is of less and less real value. The
reason why is that money alone will buy
a steadily diminishing number of goods
and services. To mean much, money
must be accompanied by a ration coupon
that assures the owner of money a right
to buy goods. The new scramble is to
obtain coupon money. The United States
appears to be many months away from
this sort of situation, but the trend def
nitely Is in that direction. It will become
more apparent about six months from
now when store shelves will begin to be
less well stocked and when the amount
of money in the hands Of spenders will
be colossal.
That Is the more immediate side to the
problem that grows from latest conces-
sions to workers and farmers.
The longer-range problem is even more
important. What Government Is doing
to make guarantees of income to two
powerful voting groups. 1t is one thing
to fulfill those guarantees in a war pc
riod when demand for war materials
assures market for everything that can
be produced. 1t is another thing to full
I'LL those guarantees in peacetime when
American workers and American farmers
must compete with the workers and far
mers of other lands to find markets for
their goods
Farmers are being assured fixed prices
on their basic crops. These fixed prices
are designed to assure parity" income.
At those fixed prices, farmers will have
an incentive to produce far more than
can be consumed in this country. The
result is that once war demand is ended,
Government will have to take control of
the farming industry in order to control
production or to subsidize home con-
sumption and export of the ssurpluses.
New Deal farm control will appear mild