Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-03-12
Third Of a Series. J
BY CARL w. McCARDLE


visitor as if it were the Tai Mahal
OF course the reason Canadians
take such. pride in it is a matter
of economics. 1t was established
in the late fall of l94l Compared
with what it was then. the cost of
living is now up less than a point.
In the month between December 20
1912, and January 20, l943, the cost
of living went down more than a
point. Canadians feel good enough
about this without contrasting it
with the situation in a country not
million miles south of here.
Most of the credit goes to a 40
yearold Scotsman named Donald
Gordon, who administers the price
ceiling. He has the respect of both
businessmen and consumers He
has taken them completely into his
confidence He tells them in simple
terms what he is doing and why it
Is urgent for the welfare of every
body that he do it. And without
any personal theatres he has
way of dramatizing his task which
appeals to the imagination.
Appears as Warrior.
He appears to many Canadians
not as mere government admin
Istrator, but as a bold and tireless
warrior engaged in a battle with
forces that have never before been
soundly beaten during a war-the
forces Of imitation. So far Gordon
has won-but the battle is getting
steadily tougher, and is now ap-
preaching the crucial stage.
A sample of the Gordon method:
He recognized that IS per cent of
the buying in retail stores Is done
by women. Accordingly, at the
outset he invited to Ottawa repre-
sentatives of every women's organ
12atlon in Canada. He asked them
to educate their members in the
meaning and necessity of price con-
troll. He admonished them to be
prlce-conscious, and to be on the
lookout for attractions of the reo,l-
lations. All over Canada thereafter
women broke out with little blue
DOCKS Keeping close tab on whether
any prices in the stores were higher
then IN the basic period September
October, l941.
Keeps Prices Down,
Some time later Gordon was in
winnipeg to make a speech. A
woman there proudly showed him
her little blue book. In it, she had
entered the amount of her regular
SUNDAY church contribution. She
assured Mr.. Gordon she was being
very careful not to exceed it. She
wasn't gong to be responsible for
letting initiation loose upon Canada.
l spent more than an hour talk
Ing with Donald Gordon. whose Off
clal title is chairman of the War
time Prices and Trade Board.
Blend a Scottish nature, the in
stlncts OF a detective, a boundless
capacity for work and a passion for
democratic principles and you have
the secret of the success of Canadas
price holding policy.
Stated simply, the governments
original order was: That retailers
prices must not rise above those
prevailing between September Is and
October II, 1941.
Wages Are Pegged.
Interlocked with the restriction on
prices was one on wages, pegging
the latter at the rates obtaining in
md-November, 194l, with the added
provision that for every point the
cost OF living increases EMPLOYEES
shall be paid by the employer
weekly cost of living bonus of Is
cents. The cost of living bonus is
determined every three months.
1t can be seen that the handspring
OF the whole program is the limita-
ton on prices.
Our objective" Mr.. Gordon told
me, lis to keep prices down. And
we are going to do that, come what
may. We are prepared to use any
weapon and to take any action that
Is required to achieve our aim. We
believe that any means is justified"
No Official Ceiling.
Mr.. Gordon showed recently how
courageously he was ready to act
when something of crisis developed
IN the price control system.
There is no direct ceiling on farm
products and food prices were rising
substantially and were pushing up
the whole cost of living average.
This presented double threat. Not
only were prices advancing, but the
cost of living was being boosted to
level where another cost of living
bonus would have to be paid in the
next quarter. employers already
Uprp
bonuses to take care of the rise in
the cost of living since l94D. Be
sides placing a $4,000 900 burden on
employers-that's the estimate of
what each bonus amounts to yearly
1t would set off an incipient spiral
of initiation.
In Waglng his war on prices, Cor
dons strategy has been, he saws one
OF spontaneous ingenuity" In line
with that, he now decided upon a
fortnight new experiment. He Sc,
lected four articles in general use
milk, coffee. tea and oranges-and
oecreed that the prices at which
they were being sold had TO come
down.
Reimbursed for Losses.
1t was done this way; MIX dis
trlbuters were told TO reduce the
price OF milk by 2 cents a quart and
10 bill the Government for the ,
cents they were thus out on every
quart. The distributor was to 90 to
his bank periodically and make
declaration as TO the amount of milk
SOLO during the period, The bank
paid him for the loss he had sus-
tanned at cents a quart. The bank
was then reimbursed by the Com
modify Prices Sterilization CORPORA
non, governmental financial
agency.
In much the same fashion, coffee
was reduced by cents a pound and
Tea by 10 cents a pound This was
little easier to accomplish. because
the Commodity Prices Sterilization
corporation has been doing all the
Of