Evening star., 1942-09-15
Initiation
Continued From First Page.

the problem of maintaining pro-
duction is giving him more concern
than the problem of keeping up re-
turns to farmers.
Il think we can assure reasonably
adequate prices and income to farm
ers," the Secretary continued. Il
am genuinely alarmed about farm
labor, farm machinery and other
supplies essential to production.
These obstacles cannot be overcome
by prices alone and they are more
serious than the people realize
Farm production this year. Mr..
Wickard said, lis nothing short of
miraculous" under the circum-
stances, Total production will run
about IS per cent above last years
record output.
Must Have Federal Aid.
But l am afraid production will
begin to decline in 1943. Farmers
Will do everything possible to do as
well as they did last year. or even
better. Yet I do not see how they
can overcome the lack of a sufficient
supply of labor, machinery and
other things necessary to produce
food, unless they have the under
standing and aid of Government.
Earlier, while Price Administrator
Henderson was testifying, Senator
Taft, Republican, of Ohio, drew
from the price administrator
statement that wages have got to
be regulated" as part OF the infla-
tlon control plan. Mr.. Henderson
explained, however, he did mot ex-
pect to be given the job of wage sta
bilizatior. "@
Senator Taft said the wage con-
troll authority in the pending bill
probably would be left with the
War Labor Board. If that is the
case, Senator Taft said, he thought
it might be necessary to write in
some compulsory wage provisions.
We give you power to Ak farm
prices and we know you will fix
them" Senator Taft told Mr.. Hen
derson. 1--WE can give the War
Labor Board power to fix wages and
don't know that they will fix them"
Senator Taft started to ask Mr..
Henderson whether he thought the
War Labor Boards policy in recent
months has followed the Presidents
seven point program of April q for
controlling imitation. The Senator
Withdrew the question after Mr..
Henderson indicated he did not like
to comment on the work of another
agency. The price administrator
told the Senator, however, that he.
Henderson, had made his own no.
sltlon on wage control pretty clear"
Mr.. Henderson. during his testi-
mony called for stabilization now of
farm prices, wages and salaries To
head off what he called an imitation
disaster "as deadly as a bomb and as
treacherous as the japanese.
Wages Hole in the Dam,
speaking of wages, he said:
Another hole in the dam-and
Just as serious-involves the matter
OF wages. Wage increases are also
threatening our price ceilings be-
cause they are costs and their con- |
tlnued rise inevitably pushes prices
higher. But, we must not forget /
mat wages cannot be established !!
II the cost of the food the wage |
Garner must pay also continues up-
ward. r
wage increases, when not ac-
companied by corresponding in
crease IN production are inflationarv |
Tor two principal reasons: First. they
increase labor costs, and thus cause |.
pressure against price ceilings. For
several months in the war effort, |
higher wages could be absorbed be- |
cause of the higher levels of pro-
duction, which reduced unit cost.
Explains Initiation.
That happy situation is no longer
present in most American industries |
From January /, l941, to May. 1912. |
unit labor costs have increased by an
average of IL per month. In the
months to come, I look for unit |
labor costs to rise further quite |
apart from any increase in wage |
rates, what with the loss of younger
and skilled workers, introduction |
of less skilled labor, inevitable trans
portation and other delays.
The second main effect of higher
wages on imitation arises from the