Evening star., 1943-09-14
More Food Subsidies
Planned by 0PA 10
Hold Price Ceilings
BY JAMES Y. NEWTON.


Congress reconvened today,
scratched its head and wondered
whether 1t had been away, for
right on the doorstep was the
old problem child, subsidies,
looking about the same as when
the legislators went home in
July.
Chester Bowles. who became
Once OF Price Administration gen.
eral manager while Congress was
adjourned, said he would ask for
subsidies whenever "pressures" arise
to threaten price ceilings. He said
pressure already was on milk cell
ings, and other officials estimated it
would cost 5000, 900 900 to keep milk
prices at present levels. Congress
will be asked before long to approve
such a program.
Further than that, Mr.. Bowles an
nounced a program to push back
prices of apples, oranges. onions,
potatoes, lard, vegetable oils and
peanut butter, which involves limit
ed use OF subsidy and will cost $780,.
600 900. OPA, however, already has
the money for this program in SUBJ
sidy funds approved by Congress In
July.
2-Billion Plan Dropped.
While Mr.. Bowles implied there
likely would be 'pressures" on CELL
ings other than milk, one official de-
clared the administration had aban-
doned its $4,000, 600 900 program to
subsidize virtually all major food
products, which was reported sew
eral months ago.
1t was held likely that Congress
also would be asked to approve sub
sides for additional canned goods.
Right now the four major canned
vegetables-peas, beans, corn and
tomatoes-are subsidized at the
Gamer level. Such things as can
ned fruits and the minor vegetables,
though, are showing signs of break
ing through ceilings. Then, there is
the old problem of holding down
Ulcdu PRICES. .=s.
The OPA official, who said the
more ambitious subsidy program
had been scrapped, also said that
the definite program made public
by Mr.. Bowles for the seven food
products was "the last of the cheap
subsidies" Milk and other items
which may be under consideration
will cost much more. Mr. Bowles
estimated that he will get a reduc-
ton of 2.3 per cent in the overall
living cost by reducing prices of the
Z products.
Mr.. Bowies said OPA will keep all
subsidy recommendation Ito the
absolute minimum"
Living Cost Drops.
The Labor Department. mean
while, reported that fresh vegetable
prices continued seasonally lower
from mid-July to mid-August and
resulted in the third consecutive
monthly decline in the cost of liv-
ing for city workers. drop of one
half OF per cent.
All food prices were down 1.3 per
cent and more than balanced
smaller increases during the month
for other goods and services. Since
mid-May the cost of living has de-
clined total OF Is per cent.
With the drop in living costs and
the expected decline resulting from
the rollback of prices on the seven
food items and the expected rollback
Of winter vegetable prices, the OPA
Is not far from its goal Of stabilizing
the cost of living at levels Of Sep
tember, 1912. Mr.. Bowles estimated
that improved compliance and en-
forcement of price regulations would
bring the index within one point OF
last September. -.... .
The Labor Department said food
prices are high despite the summer
declines. They averaged about 9
per cent above last year and nearly
Al per cent above the low levels
prevailing just before the outbreak
of war, September, 1899.
Although vegetable prices recent
ly have dropped 8 per cent, they still
are about IS per cent above last
August and 80 per cent above 1899.
1t is in this field that Mr.. Bowles
expects to obtain the 2.3 per cent
reduction in overall costs.
HA1NA ~ - - -