Detroit evening times. (Detroit, Mich) 1921-1958, 1942-07-13
Plan to Set
World Wage
Hits a Snag
Wallace Post Wor Idea
to Be Decided Soon
BY PAUL MALLON

y
W Some significant postwar
planning 10 raise world wage
rates a ready is being urged
inside the government by Vice
President Wallace's board of
economic warfare. but not with
out encountering difficulty.
The Wallace group wants the
state department TO run into
some Of our war trade contracts
with Latin-American nations
provision which will start rails
ing some wage levels in those
nations. II would be a compare
lively simple mi ter for this
government to require that GER
tain labor standards be met in
any goods il purchases from for
eign countries.
Some officials, however, doubt
that this is the time 10 start
world social reforming. They
want to win the war first and
then they think that they could
look al what is left with more
objective and experienced view
point
But the Wallace boys believe
il is never too early TO start re-
forming and are pressing their
views onward.
A decision is likely within a
week or two.
THE only very clearly social
L experimenting for the post
war world was done in the Hal
tan Development Compan
financing by the Export-lmport
Bank. and this was done long
before the war started.
The company was created I'M
der government auspices for the
growing of siSal and rubber, and
has been trying TO boost basic
Haitian wage averages of 20
cents a day by offering Is TO
so per cent more.
Another modest experimental
beginning of Mr.. Wallace's plan
for the postwar world is the
Peruvian cotton deal. The way
the deal is being worked out
offers the first concrete evidence
of how this government will go
about curtailing world farm pro-
duction, how much it is likely
TO cost, and the difficulties to
be encountered.
Agriculture Secretary Wick
ard signed in April an agree
ment with the Peruvian govern
ment whereby two-thirds of its
cotton crop 100000 bales) will
be brought by this government
and put in storage. This gov
eminent is TO continue 10 take
the same amount each year
hereafter. at the annual cost of
about S1O,0OO,0O0, the crop TO
be stored in Peru.
IT WAS done as a good neigh
L Dor gesture, but the govern
ment has used the action TO try
out an international crop cur
tailment idea.
We promised 10 pay the
Peruvians a Ia per cent in
crease in price for every ! per
cent their average was cur
tailed. The scheme also worked
the other way, proposing to cut
the price an equal amount for
every similar increase in acre
age.
No one outside the agriculture
department paid much attention
10 the matter until recently.
when the American cotton
market began worrying about
that surplus.
Senator Bankhead and others
in the cotton bloc then extracted
promise from Mr.. Wallace
that the crop would not be
brought into the United States
unless our own production was
unable To satisfy war require
ments. The postwar difficulty
of foreign agriculture production
coming into competitor with our
own was thus encountered at
the outset.
AS LONG as cotton senators
"A exist. that cotton apparently
will have to be sold by this
government 10 some foreign con-
sumers in some way whereby II
will not compete with American
cotton. That will be difficult, II
not impossible.
The agriculturists here. how
ever, have not let that prospect
diSmay them.
The Peruvian farm production
system is Spanish hacienda
approximation Of our own share
cropper condition. The boys here
are already feaSting their eyes
hungrily on that subject. al
though it is not mentioned in
the agreement
THE Hitler break-through Of
L The Russian lines caused no
great alarm here. even after ne
was able 10 develop il. With
such fire power as the Germans
possess ability 10 mass in
superable offensive weapons al
a striking point beyond prece-
liant in all history Hitler could