Evening star., 1942-11-08

OTTAWA.-PresidentR Roosevelts exec
cutive order stabilizing the cost of living
was studied with keener interest by
Canadians undoubtedly than by the
people of any other country, for it fol-
lows pattern Of economic control that
has become familiar part Of Canadian
life To an extent unrealized by many
Americans, the Canadian economy has
become linked intimately with the Amer
ican economy Together they represent
the worlds foremost example Of eco
nomic interdependence.
In each country, the cost of living is
now approximately parallel and both
governments now are determined to pre-
vent further inflationary movements.
Canadians have been sensitive to the
fact that, If imitation had run out Of
control In the United States, they would
have great difficulty keeping out Of the
economic whirlpool themselves.
When Canadian production started to
roll on a real war basis in the summer
of 1941, this country began to feel the
first effects Of imitation. Canada erected
a series of the most drastic civilian con-
trolls ever attempted in a free country.
Most of the provisions Of the new Amer
lean program of economic stabilization
placed under the direction Of Justice
James F. Byrnes find their parallel in
Canadian policies now almost year old.
Rent Control Is Example.
Take rent control as an example The
United States has set rent levels OF
March, 1912, as the ceiling. The Cana
dian rental ceiling was established to
cover the entire country on November 81,
1941. and the ceiling is the rent level OF
January l, 1941. Both countries expert
mented with local control measures be-
fore adopting a general rent ceiling.
Latest statistical reading Of the cost
of living in the United States Is 1l7.4
for August, 1912, as reported by the
United States Bureau of Labor. The
Canadian cost of living index was 1177
in August. 1t Is down to 1174 for Sep
temher. Each index has the same base,
1858 equals 100.
The new American ceiling on wages Is
the level prevailing on September Is,
1912. The Canadian wage ceiling. In
effect since December l, 1941, fixed wage
levels at the average of 1926-29 or any
higher level prevailing up to the end
of 194O., In other words, the Canadian
ceiling is the highest level between 1925
and 1910, and the floor is the average
of 1926-29. 4a..
Canada provides for q cost Of living
bonus payable to&wage -earners on the
basis of IS cents per week for each point
increase in the index OF cost OF living
since the war started. Because the cost
Of living has risen II points, this bonus
is now being paid at the rate of s4.25 per
week. It is payable to all workers be-
low the rank Of foreman. The Canadian
War Labor Board has the power to iron
out inequities.
Salaries Also Frozen.
Like the United States. Canada has
frozen salaries. Since November %,
l941, no increase in salary above $4,000 a
year is permitted in Canada without ap-
proval of the National War Labor Board.
There is no formal ceiling on Canadian
salaries, to compare with President
Roosevelt's ceiling of $25 900 after pay
ment of taxes, life insurance and fixed
obligations. But an effective ceiling on
Canadian salaries is enforced by high
income taxes, which leave not more
than $4,000 to any individual salaried
man.
The general price ceiling in Canada,
which covers almost everything in sight,
is based on price levels prevailing in the
period from September Is to October H.,
1941. It was established December /,
1941. The new United States ceiling,
covering foods and food products, is
based on levels prevailing Septembr Is,
1912. There is not great deal Of differ
ence in the method of subsidizing food
production. United States payments
made under the Soil Conservation Act
or Agricultural Adjustment Act will not
be regarded as part of the price paid by
the consumer, The United States plan,
moreover, provides for other subsidies If
necessary.
of commodity becomes difficult because
the retail price is fixed, subsidy may
be paid by the Commodity Prices Stabili-
zation Corp. Subsidies amounting to
$15,000, 900 have been paid. In addition,
the farmer may sell in his highest mar