Evening star., 1942-05-03
New Price Controls Termed
Essential to i. S. Stability
Whether or Not Nation Wants
or Understands 1t.
BY Felix Morley.

1t was. doubtless, inevitable that the
present war should be interpreted in
over -simplified terms. History tells us
that only a small minority, by no means
confined to the best educated. is ever
competent to recognize revolutionary
significance in current events. Further
more. this minority is seldom vocal in
wartime. There is too much likelihood
that those who indulge in cold realism
will be accused vehemently of personally
desiring the turn of events which their
intelligence indicates as probable.
Unfortunately, however, the connec-
tion between cause and effect is not
eliminated by refusing to recognize its
existence. Definite conditions are likely
to produce definite consequences, regard
less of whether the outcome is distaste-
full. A case in point is found in the
'burdensome price controls" so defined
by the Office of Price Administration,
which are announced to take effect next
month.
All who have any understanding of
the economics of total war have for some
time anticipated this far-reaching step
1t was clearly indicated when the Cana
dian government felt compelled to i'm
pose similar, but more sweeping, pro-
gram last November. The DEVELOPMENT
in this country has been forshadowed
by the accommodating evidence that a
potentially runaway imitation is gather
ing strength.
Controls Viewed as Essential.
Whether the regulations now an
nounced are welcome is really an irrele-
want consideration. These controls, with
all their tremendous implications, are
essential and are, if anything, overdue.
Moreover, the action taken is ad-
mittedly only preliminary. In the re-
freshlngly honest words of o. P. A. the
current order is a cornerstone" It is
"a prerequisite to the further measures
which are necessary to insure wartime
stability in the economy" And there
are clear intimations as to the direction
these further measures will follow.
The Canadian government, profting
from earlier European experience, six
months ago ordered a ceiling placed not
merely over retail prices, but also over
public utility charges, wages and prices
OF agricultural and other primary prod
ucts. The drastic measure was at the
time described by Tom Moore, president
OF the Labor Congress of Canada, as the
longest step yet'taken by any democracy
toward the establishment of a totali-
tartan state."A
Our own Government is proceeding
more conservatively. No actual steps
nave as yet been taken, though they are
indicated, to freeze either wages or farm
prices. For this the administration is
being sharply criticized. The New York
Times asserts editorially that it "has
undertaken an anti-infiation' program
that threatens the maximum of compli-
cations, disruptions and Government
controls with the least promise of sue
cessful results"
The criticism seems distinctly unfair.
o. P. A. makes it clear that the current
order Is not the whole program, but
merely an initial step. And there are
reasons why the pressures now applied
to distributors should, for the moment.
be withheld from the better organized
producing groups, beth labor and farmer.
The controls will be extended, If not
before the November elections then
shortly thereafter. This is strongly in
timated by the o. P. A. statement that
its present order makes possible an
effective war labor policy"
Henderson's Views Recalled.
Leon Henderson says optimistically
that the general maximum price regu-
lation is strictly a wartime measure"
The majority will trust that this hopeful
assumption is justified. But 1t should
be noted thatthe formal o. P. A. state
ment leads rather toward an opposite
conclusion.
The statement emphasizes, for in
stance, that disastrous imitation EN-
quilted the countries of Central Europe"
not during but after the last war thus
leading to the drastic peacetime State
controls whereby Nazi Germany stabil-
lied its economy, very likely with a view