Detroit evening times. (Detroit, Mich) 1921-1958, 1942-03-16
Rise in Prices
Can Be Ended
By One Word
Forbid II and Initiation
Stops, johnson Says
BY HUGH s. JOHNSON

TT IS believed in these parts
Il that the President last week
held a conference on the advisa-
bility Of checking imitation by
establishing ceilings on all prices
and wages as Of some certain
recent date according 10 the
Canadian plan
Just why it should be called
the Canadian plan is not clear.
1t has been urged here for years
and Mr.. Leon Henderson has
actually practiced 1t on few
products.
The simplest way of saying it
Is perhaps:
Imitation is high prices. The
way to stop imitation Is to stop
rises in prices"
The way TO stop rising prices
is to stop forbid them.
DERHAPS the main reason
L that we didn't try that here
was that both organized labor
and organized agriculture OBJ
jcCtcd 10 any ceiling over their
prices and were too strong POI
litically TO be denied
But there were other reasons
One was that there were many
other and less easily understood
theoretical cures of this evil
One was 10 tax away from
everybody all their buying power,
except enough 10 leave money
for only necessities or 10 absorb
AT present prices, without bid
ding higher ones, all the eStl-
mated % billions of dollars
worth of 1912 production Of
Consumers goods -
Nobody knows if or how that
would work To check initiation.
It's pure theory. But il is not
pure theory that il would mean
taking by taxes from people
perfectly fantastic sums.
Al the treasury, whore This
theory was born. that result
caused no hesitation. ON tho
contrary II was suggested, If not
proposed. to make the taxpayer
find onthly in cash not
merely the terribly high taxes
Of 1912. hut part Of the much
higher rates Of 1913.
As ANOTHER III cthod Of
"A checking initiation. by TAX
ing away public purchasing
power there was discussed
forced savings the setting
aside by government decree Of a
portion of each persons monthly
earnings 10 hc paid 10 him in
government bonds o. savings
stamps and repaid after We
tory
There is no reluctance among
our people 30 paying 'aNoS TO
finance the war We are not
talking about that here
These taNcS are 10 prevent
initiation. " They arc proposed by
government which has on Us
books two Very effective laws
10 create initiation put there
for that purpose.
These laws ar, limitation 70
30 houI> Of work per week with
oui ContI~caiOrN overtime and 2
law 10 peg farm prices 10 what
ever initiation may occur
Rising farm prices and labor
wages are two principal Gle
mcn'S OF a rising general price
structure. Yet the government
has been unable. Will" propoS-
Ing gricVou>lV bearing tax laws
20 muster Tic courage 10 strike
down these great elements OF
Initiation.
IT IS grotcSque Many urforru-
L nate people. duo 10 the dc
StUICtiVc effect on business and
present income Of tho govern
mcnf'> many measures Of war
restrictions arc finding It nocc>-
Sary 10 Try 10 borrow money 10
pay The current IntalmcntS OF
taxes.
In many cases income Is being
So far impaired that oven the
current talk of these far'asucaI
taN and 'furccd->aNlng methods
has invoked the "laW Of dImln.
i>hlng returns on revenue from
even present taxable income
Figures are not currently
available on tho total decline I'M
market values Of stocks. bonds
and other securities due 10 pres
eni policies. but this loss alone
in available wealth 10 pay taxes
and i'm national sources undoubt-
Cdly runs INTO billions lnfla-
'lon is already started and far
on rs way
II is a fashion among some
in Washington 10 say the cost OF
living has not risen Importantly.
( The housewife knows that is has
murdCrouSly increased.
Between this and tho fall in
values arc vanished billions be-
fore now taxes oven begin 10
work Tho country is beginning
10 know this oven # Washington
doesn't
DISSEMINATED nr Kn1 Features s,od inc,
Reproduction In whole or IN par
s'rs'is prnhihred.
25 YEARS AGO TODAY
March rs, 1917