Evening star., 1942-01-04

these illustrations are based on pres
ent parity levels, and that some
further upward revision Of parity
prices may be expected as the gen.
eral price level changes.
Price Yardstick Criticised.
In rejecting the 1919 to 1929 yard
stick for farm prices. the commit
tee said that standard would make
possible unreasonable and inf1a-
tionary" price levels. Using that
period, the committee said, would
be equivalent to giving cotton 119
per cent of parity, potatoes l23
per cent of parity and chickens 100
per cent of parity before the ad-
ministrator could apply a ceiling.
Those levels, the report continued,
would represent not equal treat
ment for the farmer, but prefer
ential treatment
In support of prompt passage the
committee cited that on December
/ the Bureau of Labor Statistics
index of % basic commodities had
already increased about 81 per cent
since August, 1899, when the war
started; that wholesale prices had
increased about % per cent, and
the cost of living IL per cent.
More alarming even than the
total advance was the accelerating
rate of increase the committee
continued. I'm the preceding nine
months there had occurred one-half
of the total advance in basic COM
modify prices, two-thirds of the in
crease in wholesale prices and four
fifths of the increase in cost of
living Nor was there any reason to
suppose that the rate of increase
in the cost of living would be re-
duced, because much of the advance
in wholesale prices had not yet been
reflected in the retail markets"
Fearing that advance hearings on
proposed price ceilings would only
invite periods of speculation, the
Senate bill would make the price
orders effective as soon as they are
issued by the administrator. Hear
ings would then be granted and de-
cided promptly. Appeals could still
be taken to an Emergency Court of
Appeals created in the bill, and
made up of Federal judges assigned
for that purpose.
Safeguards of Licensing Power.
Safeguards also are thrown around
the licensing power, by. limiting the
administrator to warning for the
first offense, and requiring court
action on revocation for a further
offense. The committee pointed out
last night that in the last war re-
vocation of licenses by the Food and
Fuel Administrations rarely was
necessary. the threat of revocation
being sufficient in substantially all
cases to achieve compliance.
In his personal discussion of the
bill, Senator Danaher, a member of
the Committee, said:
TT should be accepted in princi-
pie, but on the understanding that
even more drastic measures may
yet be required AS we gain ex-
perience under its administration,
further corrections will be forth
coming, am sure.
"A reduction in taxes wherever
possible by virtue of the decrease
in expenses not essential to the
prosecution of the war, a decrease
in the amount of funds available
to the public for consumer goods,
through various devices, perhaps a
rationing of the necessaries of life,
and similar measures are yet neces-
sary for a complete frontal attack
on the forces of imitation. Above
all, an enormous increase in pro-
duction will assist in making avail
able all goods necessary for our
wartime effort and for maintenance
of our economy"