Evening star., 1942-08-28
President Bans
RigidCrop Price
And Pay Levels
Flexible Stability
Would Let Them Rise
With Living Costs
By GARNETT d. HORNER.

TlCSkQCllI INOooCNCie oahu eoNdy
his new anti-inflation program
involves flexible stabilization Of
wages and farm prices rather
than any rigid freezing of those
items in the cost of living.
The President explained that he
contemplated stabilizing the ratio
between wages and farm prices and
the cost of living, move which
would permit adjustments as they
might become necessary.
Mr.. Roosevelt's present plans are
to outline the whole procedure Of
the new program in message tn
Congress on Labor Day, and explain
it to the country in "fireside chat"
radio address that night.
His objective to keep the cost Of
living from spiraling upward out Of
control through flexible stabilization
of wages and farm prices In addition
to controls already in effect is pretty
generally accepted by most people
concerned, including organized
labor leaders and some farm spokes-
men, the President said.
Won't Tell Details Now.
He refused to enter into any dis
cussion of details at press con-
ference today, explaining that talks
now going on among Government
officials and others still are in
generalities and that decision on
details would not be made known
until his message to Congress.
Presumably the flexible wage and
farm price stabilization contemplated
by the President would peg those
items to the actual cost of living as
determined by the Labor Depart
ment. Apparently it could tie in
with the formula devised by the War
Labor Board in granting a wage
| increase to steel workers last month.
The board based it's award on q
rise of Is per cent in the cost Of
living between January l, 1941, and
May l, 1942 The workers already
had obtained wage increase of lib
per cent over this period A fur
ther increase of 80 per cent would
have brought their wages up to
match the increased cost OF living
as of May /. The board added in
that case, however, 23 per cent for
total of a SIS per cent wage in
crease.
1t was understood that the Cana.
dian system of wage control, which
ties wages directly to the cost of liv-
ing, was being studied in connection
with the formulation of the Ameri-
can program, although there was no
indication that it would be followed
| exactly.
The Chief Executive Is expected
to put the new Authorization moves
into effect under his war powers
rather than through additional leg
islation. He has made clear his be-
lief that the cost of living problem
may get out of control so quickly
that Congress could not act fast
enough.
He side-stepped questions at his
press conference about studies being
made for him by the Justice Depart
ment on his authority to deal with
the problem. He was asked If one
point of the study involved way in
which he could put restrictions on
farm prices below the 110 per cent
of parity level provided in present
law, and answered that he wouldn't
write it that didactically. Asked
how he would write it. the President
replied that he would not write
about it at all as yet.
In response to other questions, he
said he expected conference
scheduled with AFL President Will
liam Green and CIO President
Philip Murray on his wage stabiliza-
ton proposals still would deal with
generalities rather than any specific
plans.
Two Agree in General.
Both Mr. Green and Mr.. Murray
agree in general with the detectives
of the contemplated new restric-
tions, as well as some of the farm
organization leaders.
He told questioners that a Ma
tional Grange suggestion for scrap
ping the present parity base for
farm prices and setting up a more
equitable definition of parity was a
detail which he could not discuss.
The Agriculture Department is
considering the suggestion, he
added.
The President said he agreed with
the Grange contention, that the
present stipulation that controls
could not be put on farm prices un-
til they reached ITO per cent of par.
Iity was inflationary and dangerous.