Evening star., 1942-04-29

in March. and for which conse-
quently they have no level on which
to base future transactions.
In q formal statement, Admins
traitor Henderson said that the
March level was chosen because it
was advisable to Ak time as near
the effective date of the order as
possible
Prices under the ceiling are going
no higher" he said The retail
price will be held. There will be no
increase in the general level. Re-
tailers whose ceiling prices are not
adequate to cover the cost of replac-
ing merchandise because wholesale
prices have advanced must expect
and receive relief from their sup
pliers. If wholesalers and manu-
facturers do not readjust their
prices downward voluntarily in these
case. the Once of Price Admins
tration will take action under the
law to insure that each class Of
seller receives a fair share of re-
turns from the retail sale OF any
commodity.
Plan for Adjustments.
price adjustments will be consid-
cred only in cases where individual
sellers suffer hardship because their
prices for special reasons are out
Of line with those of their competi-
tors. These special situations will
be handled by machinery which is
now being set up as rapidly as pos
sible."
Mr.. Henderson said he wanted no
political maneuvering, such as the
seeking of price and rationing
favors, in the administration of the
price order. Mr.. Henderson said
he expected "a pretty tough time"
eliminating politics from the pic
ture, but that he was going to try.
There will never be a condition
where any one, by being right po-
litically can get price or rationing
favor" he said.
The rent ceilings will apply to areas
in 46 States and Puerto Rico. The
District, which has it's own rent law,
is not affected. While generally the
administrator is proposing that the
March l rent level be applied. he
designated 64 areas as those in which
"exorbitant" increases have taken
place, and Is proposing levels that
prevailed as far back as January l.
1941. In this group are Alexandria
and Arlington and Fairfax Counties,
in Virginia. and Montgomery and
Prince Georges Counties, Md.
In a Statement of considerations
involved in the issuance" of the price
ceilings. the o. P. A. said that "it is
the immediate purpose of this
regulation to guarantee to the Amer
ican people that their living costs
will remain stable adding that "this
is prerequisite to the further meas
ures which are necessary to insure
wartime stability in the economy"
Living Standard to Fall.
This regulation" it continued,
"does not insure that the standard
of living of any individual, or group
or Of the Nation as a whole will
remain unimpaired. The loss of
overseas supplies and the conversion
Of domestic man power and facilities
to war production make this i'm
possible. The material standard Of
living of the American people will
fall. But this regulation does help
to protect the Nation against in
hationary Embellishments as be-
tween different people and classes
of people. And it does help insure
that scarce goods will be allotted on
a basis of equality"
At the present rate of income, the
statement said, the American people
will have about $4,000, 600, 900 to
spend this year, while consumer
goods available for purchase will
amount to s69, ,O00, 900 900. Herein lies
danger, it was added, as the gap
between purchasing power and the
supply of goods has caused in
recent months general advance in
prices and an advance which is
accelerating in rate"
The country already has passed
through mild stage of inflationary
price advance, the o. P. A. said, and
is entering "a more and severe stage
"a stage where the upward move
ment Of prices will increase both in
magnitude and In tempo. Beyond
that stage lies the fatal spiral which
engulfed the countries of Europe
following the First World War"
Sees Tough Problems"
Mr.. Henderson was asked II he
did not expect the problem to be
complicated in this country by the
absence of ceiling on wages and
the restrictions imposed by Congress
on lowering farm prices, but he
would only say that there are 60
Ing to be some tough things to work
out in all kinds of cases." 1t was
pointed out that in general the cost
OF farm products will be fixed at the
time of their first processing.
The price administrator said that
there are about 1000 rationing COM
mittees-citizens' groups-function-
ing now and that he expected this
number would 60 to about 10000.
In addition, there will be State and
district Offices set up. 1t is also
planned to give these citizen groups
some paid help. but this organiza-
tion program depends on what the
Budget Bureau allows.
Mr.. Henderson refused to esti-
mate the size Of the force that
eventually would be required to d.
rect this program. but he was en-
phatic in declaring that the task
was administrative and not polio
ing and that there is no basis for
the idea that we will have a whole
army searching for violators."
While promising to bear down on
wilful violators, Mr.. Henderson pre-
dicted universal cooperation in
making regulations effective.
He conceded also the likelihood
that State politics" might prove
troublesome in setting up the ad-
ministrative machinery but prom
T.. y