Evening star., 1943-11-01

M
Vegetables rose So per cent between
September. 1912, and MAY. l943. and
accounted for over three -hfths of
the increase III the entire cost Of
living during that period
To put this somewhat differently.
90 per cent of the cost Of living had
been largely stabilized. Ten per
cent of the cost OF living had been
permitted TO get out of hand That
was the situation which confronted
us last May,
The easy way out of this situa-
ton would have been to let wages
rise above the base Gate level IN the
same degree that the cost OF living
had risen That is what some did
urge. That would have been
serious blunder. For if the line had
been relaxed on the wage front. We
may rest assured that the resulting
pressure of costs would have forced
prices and the cost of living up once
more. thus calling for still another
rise in wages Just as the Stabiliza-
ton Act is to the everlasting credit
Of the Congress 50 the whole
hearted support which responsible
organized labor gave 10 the hold
the-line policy stands to the ever
lasting credit of labor in the United
States. The responsible labor lead
erShlp saw that the easy way out
was no way out at all, and they re-
jected it. Instead, they threw their
full energies into making effective
the program to reduce the cost OF
living. the program to bring the
cost Of living back into balance
with wages.
The "hold-the- line order was
designed to undo the damage that
had been done and to prevent any
further damage The rise in the
cost Of living having resulted almost
entirely from the increase in GER
tain food prices, the program was
quite properly designed to bring
those food prices back to their Sep
tember levels as far as possible
Reductions in cabbage and lettuce
resulted from squeezing the water
out of the price structure by re-
Nlut4II5 tNSCEN4NC ma ; lilS VI iINli ~
utors wherever they were found 10
exist.
The retail prices of meat and
butter were reduced by 10 per cent
In these instances. the prices re-
Celved by farmers and distributors
did not permit reduction without
bringing returns to unrea soma bly,
low levels. Accordingly. an equal
ization payment was paid by the
Government to the professor to en-
able him to reduce the price of these
products without loss to himself and
without reducing the price he paid
the farmer. The Reconstruction
Finance Corp. undertook to make
these payments to professors Of
meat and butter, so that retail costs
Of these foods might be held down,
while the producers received large
enough returns to encourage output.
The public Treasury has been
using, as food production aids. other
forms Of payments under the Agri-
cultural Adjustment Act and So
called section 80 operations for sup
pOrtin, prices.
Additional or subsidy payments
have been made to industry in order
to secure wartime production of
many essentials, including copper,
zinc, aluminium and other critical
materials. We have paid premiums
to speed up construction of ships
and other war materials.
In consequence of these programs,
the rise in the cost of living. which
had proceeded without interruption
from the early months of 1941. was
brought to an abrupt halt. In June,
l943, the cost of living fell to SO
per cent above the September. 1912.
level, in July to SO per cent, and in
August to 4.8 per cent. 1t is true
that in September, l943. the cost of
living rose by nearly one-half per
cent. 1t was not due to food but
mainly to the cost of clothing.
There is now being put into eff
feet program, recently announced,
to reduce the retail prices to con-
sumers of other items: Apples,
onions, potatoes and sweet potatoes.
peanut butter, lard and vegetable
shortening.
Will Cut Present Prices.
Furthermore, preparations are be-
ing made to establish ceilings at
levels substantially below current
retail prices on other winter vege-
tables.
A major part of these decreases
will be made possible without the
use of subsidies and by means of
reduction of margins and returns
which are excessively high. In some
cases. however. it will be necessary,
in order to hold the retail prices at
reasonable levels, for the Govern
ment to absorb part of the cost of
transportation, to take a moderate
loss on purchase operations, and to
make direct payments.
In addition we intend to assure
to the consumer that part of the
savings In price to which he is en-