Evening star., 1942-12-04
Effect Of Parity Bill
On Cost Of Livinu
Sought by Roosevelt
Swift Senate Action
Asked on Measure
House Approved
BY the Associated Press.

BY the Associated Press.
Adoption by the House of bill to
include all farm wages in figuring
parity prices brought from President
Roosevelt today the comment that
the first thing to do was to find out
the effect this would have on the
cost OF living.
The President had taken a vigor-
GUS stand against this revised parity
formula at the time anti-inflation
legislation was before Congress
Opponents of the bill contend 1t
would raise the cost OF living several
billion dollars.
Government economists have es-
tlmated the new formula would
raise old parity levels by 10 to IL
per cent, and Price Administrator
Henderson has contended it would
result in a substantial increase in
living costs.
Apparently caught off guard, Mr.
Henderson's Office had no new state
ment as to whether the legislation
passed by unanimous vote in a sur
prise move by the House yesterday
would crack retail ceilings on agri-
cultural commodities.
Quick Action Sought.
Senator Thomas, Democrat. OF
Oklahoma, Agriculture Committee
member, telegraphed Chairman
Smith at his South Carolina home,
asking for quick committee action
on the bill.
Senator Wheeler, Democrat, Of
Montana told reporters the unani-
NOUS House vote shows that the
people have spoken and the admin
stration is getting scared" He pre-
dicted speedy Senate approval Of
the measure.
The House action was viewed by
Senator OMahoney, Democrat. of
wyoming as proving his contention
that the farmer was going to face
a labor squeeze and that his prices
would have to be adjusted so as to
keep labor on the farm and prevent
q food shortage.
Some Senators expressed the view
privately that if the measure is
enacted, the increased prices might
be met by Government subsidy to
prevent any general breakdown in
retail ceilings.
Provisions Explained.
The bill, sponsored by Representa-
tive Pace, Democrat, of Georgia,
would require that all the farmers
labor costs, including himself his
wife and children and his hired
help, be included in the parity COM
putation of prices Of agricultural
commodities.
Parity is an arbitrary price CAL
culated to give farmers the buying
power of some past favorable period
for agriculture, usually 1909-19l4.
Under the anti-inf1ation law,
which conferred broad executive
authority over wages, salaries and
prices, a floor of 80 per cent of
parity, by the old definition, was put
under the six basic commodities
wheat, cotton. corn, rice, tobacco
and peanuts Except grains used for
feed; and the statute provides that
no ceilings can be placed over farm
commodities at less than 100 per
cent Of parity or the highest price
from January l to September Is,
whichever is higher.
Labor Costs Seen in Formula.
1t was assumed that if parity is
REDEEMED, then a formula including
labor costs would be used in COM
putting the floors and ceilings for all
farm commodities.
Mr.. Pace told the House yesterday
that under agricultural labor policies
being drawn by the Government
virtually no crops will be produced
next year unless farmers are allowed
to embrace the increased labor costs
in the parity formula and in the
prices they are to receive"
Farm bloc leaders privately ex-
pressed confidence the legisla ton
not only would be passed by the SEN
ate, but that it had sufficient
strength to override a presidential
veto If Mr.. Roosevelt disapproved.