Henderson daily dispatch., 1943-07-01
Babson Defends Rationing
And Price-Fixing Policies
Continued from Page n,.c

Continued from Page n.c)
have their share OF vital rnnmou-
tiles. ii This division were lett {, the
Individual. there would b too many
selfish and thoughtlcS. I,npIr who
would first see thai they .rt every
thing they could possibly need. Con-
ScQurmt'y. plan Ia divide all scarce
'i"nn' un the basis OF fairness and
need mas been devised. This is "a
uuning
Ra;ioning l. Sharing.
Rat!"ning distributes available
supplies To all, not just 10 those who
can pay high prices for scarce goods.
an example of this is the shoe sit
uat!"n. Heavy supplies are needed
for the GImcd forces. When they are
aiken care of, little remains for CT
VILLAINS. Without rationing. the we'll
to-do would rush 10 buy more than
they needed, leaving little tor others.
Under ratlonine, however, everyone
Is gwen The same opportunity 10 OBJ
tam shoes. This is the democratic
LAY.
Some people, however. refuse tC
abide by the rules. Others take adj
vantage OF this faci 10 operate black
markets. These make scarcitieS
worse, and create new Scarcities
where none existed before. An ex-
ample is the meat situation. Supplies
are cut down, thus hurting soldiers
and honest civilians. Livestock, often
slaughtered under unsanitary condi-
lions, may Oc unhealthy Our soldiers
are deprived of such medical SUD-
plies as surgical sutureS, adrenalin.
and insulin; also gelatin. hides and
fats. If everyone would cooperate.
none would lose out.
Economics and Prices in Pcacetime.
Before defending pricc-iiXing. /
Wish 10 discuss some economic rules
connected with prices. production
and imitation. say rules. but
there are So many modifying factors
that they do not always wurs; ont.
Under normal economic conditions,
production and the amount OF money
IN circulation are kept IN pa!auc,
through prices. II there Is m Incrcass
III money because of higher wages
or greater employment, there vii,
De more m"n",: than products. Poo
PIE Niil hid Tor these product, and
this VIII CauSy prices To- rise. II thi
continues. there IS initiation.
In normal times. however. thcs,.
production because OF the cv"I!gI ur
lu"ttmity Ion profits. As more pro
ducts appear on the market. price,
decline. Production and prices vii
continue al al even level until some
thing occurs 10 throw them Jut o:
balance. 1t can be seen that one way
Ia head off initiation is To- let pru-
ducllOn rise with prices
War and Initiation.
WartimcS are not normal. and
economic rules are modified. Pra-
ductiun for civilian consumers is
secondary to military needs. Many
lines arr cut out altogether. 70. in
stance. automobiles, radios and re-
iiiScraIurs have not been mIuu.ac-
t.heI sIncS oar Cn.Ty into the v.ai.
'Lyroiis. however. LIc much LARGO.
amt there $ "'urC money than u,Ut!
III circulation
AS previously explained, when
money increases. prices, then pro-
duclion. should rise. followed by .
fall in prices back TO normal. Bu;
today civilian production is strictly
regulated as Ia quantity and type
ana cannot be allowed to rise with
prices. Therefore people bid for
what products there are, prices 20
up. and initiation sets in notwith-
i;anding rationing
Price-Fixing Is tho Answer.
Initiation di5CTiminates against
I hose whose incomes have not kept
/ pace with rising prices. 1t is a major
! cduse of the postwar crashes. Dur
= ing the last war, the then admins
/ u alton let prices take their coursn.
/ Sugar prices, for example, rose t.
some five times above normal. Peace
came, prices fell, and sugar holders
, mad TO take losses. This was especial
/ is bad in instances where sugar wa;
. purchased on borrowed money. The
. I.tns covld not be repaid and banks
I w'le weakened and many even fail
ed
Hy fiN~g prices. the evils Of III
|. il,'iun mo be avoided and The IN
'Nl!1bie postwar crash can be de
itycd and made less harmful Bot
I.ice-iiNing and raiIonur arc far
NO neCcSs1iY Tor the years Oi war
md can help To a.ert the depression.
"hich h'>r ALWAYS followed wan.
therefore, II is important that every
re cooperate IN chewing The rules
Ut IdtIOning and DriyC- fixing