The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1942-03-24
. LICH T

- RAy TUCKER
UnmsnsessbIs Initiation
Threatening Country
Soaring Prices Midst
Expansion Hurtful
Shortage Of Vessels
Is Worst "BotfIsneek"
WASHINGTON - Explosive
and unmana 4 cable initiation
confronts the United States un-
iess tie president or congress
adopts q national policy banning
general wage raiscs for the durs-
ton. The ultimatum Was re-
Gently laid before q secret ses-
sion of the war board by Price
Administrator Leon Henderson.
himself the son Of . humble
workingman-
Labor will lose in the long
run. he said. II It insists on fat
ter pay envelopes at this time.
With consumer goods becoming
scarcer-he estimated that the
supply viii be at least nine bill
lion dollars less than last year
the increased purchasing power
resulting from . higher return
viii simply push prices skyward.
In his studied opinion. this viii
drastically reduce the standard
Of living.
He urged the board TO grant
benefits only to groups now re-
ceiving subnormal incomes. But
n the toilers refrain from max
ing financial demands. he ar
gued. they should be protected
against pocketbook hardships
through income and corporation
taxes and rigid limitation of
war profits. He also advocated
. compulsory saving system 30
that people would have q nest
egg for the aftermath Of Ar
mageddon.
Mr.. Henderson bulwarked his
pessimistic prediction with 4 pic
ture Of price behavior since the
struggles outbreak In Septem-
Der 1899 which explains his fear
that the worst crisis lies just
ahead.
The first Is months from 1889
autumn 10 February le4i was
the golden period" in his opin-
lon. II represented one Of the
most remarkable eras of busi-
ness expansion in our history.
There was plenty Of economic
slack In the form OF idle men.
machines and resources. In
creased buying power was
matched by a larger volume of
consumers goods. During these
months living expenses went up
only two and one-hah per cent.
Then came . change.
Many industries taxed their
capacity through shortages Of
raw materials and skilled work
ers. Demand caught up with
supply. BY December Of last
year the jump in = family's bud
get doomed an additional nine
Der cent. Since December It'll
--less than four months ago
II has climbed another three and
sne-hah per cent.
But Leon presented even
gloomier news. The price Of rs
basic raw materials. which con-
troll the general level because of
their importance in our national
economy. has scared by s. per
cent since 1889 August. About
200 Wholesale products have ad-
vanced by n per cent. These
changes in the underlying cost
structure have not yet been re-
Elected fully in the retail trade.
In q final warning he pointed
out that we have already covered
about one-quarter Of the infls-
tionary road We trudged in first
World war days. and that We will
pursue IL to the bitter end un-
less Washington acts now.
"Bottleneck" has become the
most ominous word in our post
Pearl Harbor vocabulary. II has
been applied TO the supply Of
manpower. raw materials. cleo
trio current, blitzkrieg weapons.
But N our military and indus
trial might unrolls. experts here
realize that the strangle hold
must be broken Is the shortage
Of vessels.
Transportation officials est-
mate that nine-tenths Of . ton
Of shipping per month is neces-
cary TO supply one oveseas SOL
der even after he has been land
Cd on foreign soil. This is in
addition to the huge convoy
space needed for the expedition
ary force in the first instance.
II il q far larger requirement
than in World War j, due to the
increased tempo and mechaniza-
ton Of modern fighting. Since
a boat can make only three or
four annual trips to Australia
and New Zealand. the problem