Evening star., 1942-09-07

+ the first quarter of 1912 is fair
| basis for estimating what the family
income will be for the entire year,
| the results of the study show that
whereas less than one-fourth of all
| families in the United States re-
ceived as much as $4,000 in 1941,
more than one-third will have So, 500
or more in 1912.
This shows how much the pur-
chasing power of the average Amer
ican family has gone up as result
of war production and how essential
it is to control that purchasing
power by taxation and by invest
ment in War bonds.
Rationing Essential.
We also know that as the war goes
on there will not be an adequate
supply of all civilian goods; that
only through strict rationing, wher-
ever necessary, will these goods be
eouitably distributed. We are de-
termined that no group shall suffer
a shrinkage of its normal quota of
basic necessities because some richer
group can buy all the available sup
ply at high prices.
In normal peace times the ordi-
nary processes of collective bargain
ing are sufficient in themselves. But
in war times and particularly in
times of greatly increasing prices,
the Government itself has very
vital interest in seeing to it that
wages are kept in balance with the
rest of the economy. It is still the
policy of the Federal Government
to encourage free collective bargain
ing between employers and workers:
and that policy will continue.
Owing to the fact that costs of
production are now, In so many
cases. being passed on to the Gov
ernment, and that so large a per-
centage of profits would be taken
away by taxation, collective bar
gaining between employers and en-
ployes has changed a great deal
from what it was in peace times. In
times of danger to our economy the
Government itself must step into
the situation to see to it that the
processes of collective bargaining and
arbitration and conciliation are not
permitted to break up the balances
between the different economic fac
tors in our system.
War calls for sacrifice. War
makes sacrifice a privilege. That
sacrifice will have to be expressed
in terms of lack of many of the
things to which we all have become
accustomed. Workers, farmers,
white collar people and business
men must expect that. No one can
expect that, during the war, he will
always be able to buy what he can
buy today.
Costs Must Be Stabilized.
If we are to keep wages effectually
stabilized, it becomes imperative, in
fairness to the worker, to keep
equally stable the cost of food and
clothing and shelter and other
articles used by workers.
Prices and rents should not be al
lowed to advance SO drastically
ahead of wage rates that the real
wages of workers as of today-their
ability to buy food and clothing and
medical care-will be cut down. For
if the cost of living goes up as fast
as it is threatening to do in the i'm
mediate future, it will be unjust, in
fact impossible, to deny workers
rises in wages which would meet at
least part of that increase.
The cost of all food used by wage
earners-controlled and uncon-
trolled-has been going up at the
rate of IA per cent per month since
the price ceilings were set in May,
1912. II this rise should be per-
mltted to continue, the increased
cost of food to wage earners next
May would be more than Is per cent
over the level which existed when
the ceilings were set.
This would be equal to imposing
a Is per cent sales tax on all food
purchased by wage earners. Obvi-
ously no one would consider impos-
ing such tax.
This drastic increase has been
caused, and will be caused, chiefly
by the fact that a number of food
commodities are exempt under eX-
isting law.
In the case of these EXEMPT COM
modltles the increases are even more
startling. The cost of such food
used by wage earners has been ris-
Ing at an average of 3A per cent
per month since May l, 1912.
/ Farm Prices Up IS Per Cent.
Prices received by farmers have
risen 85 per cent since the outbreak
of the war in September, 1899, and
, these prices are continuing to rise
Cash farm income, including Gov
ernment payments, has increased
from 81 billion dollars in 1899 to
substantially more than Is billion
dollars in 1912. This is AN in
crease of about rs per cent.
The movement of uncontrolled
food prices since May Is, 1912, the
date when price regulation became
effective. has been so drastic as tc
constitute an immediate threat tc
J the whole price structure, to the
entire cost of living, and to any
attempt to stabilize wages.
! Within two months after the date
that price regulation became effec.
: tive, the prices of controlled food.
actually fell 7-l0 of l per cent. But
uncontrolled foods advanced 73 pei
7 cent during the same period, anc
are still going up.
To give some specific examples
!. From May to August of this year
+ round steak and pork chops, which