Evening star., 1943-07-02
Roosevelt Text Vetoinq Commodity Credit Corp Bill


The original Price Control Act |
gave the Government certain pow
ers to regulate prices. In the sum-
mer Of last year I informed the |
Congress that the administration |
could not control the cost Of living |
and prevent imitation unless 1t was
given more adequate power to sta
bilize wages and food prices. There
after the Congress passed the act
of October 2. lo42, which authorized
me to stabilize prices. wages and
salaries affecting the cost Of living !
80 far as practicable on the basis
of the levels which existed on Sep
7tember IS. 1912
The measure now before me vir-
tually nullifies the act Of October 2,
1912. This Government cannot ef-
fectively stabilize the cost of living |
II 1t cannot stabilize the cost of
necessary foods. As q matter Of fact,
this measure even takes from the
Government powers which it was
given under the first Price Control
Act.
As the danger of imitation grows.
the Congress would by this bill put
new shackles on those whose duty
it Is to fight imitation. The fight
against imitation cannot be won that
way.
To get our economy to work,
realize that We cannot rigidly freeze
all prices or all wages. In some
cases We must paw higher prices to
producers to get the extra war pro-
dution which we need because that
extra production costs more to pro-
duce. We must, likewise, put more
money in the workers pay enve-
lope when he works longer hours
or when he does more skilled or
efficient work, or when his pay is
insufficient to keep him on a decent
subsistence level. But with a we'll
balanced combination of measures
we must keep wage rates and con-
sumers' food prices from rising II
We wish to hold down living costs.
Costs Must Be Stabilized.
Our wage stabilization program is
and must bedependent on the sta
bilization Of the cost Of living. This
is expressly recognized in the act OF
October 2, l942. The Little Steel
formula was based on the fact that
there had been a rise OF approx
mately Is per cent in the cost OF
living between January, l94l, and
May. 1912, for which rise workers
could be compensated by wage in
creases
The cost OF living is now about 8
per cent above the level of May,
1912, and about 6 per cent above
last September There has been an
increase III the average workers
weekly pay check since September.
This increase has come, primarily,
through longer hours and through
the shift OF workers into war indus
tries from lower-paid civilian occu-
pations. although increases in wage
rates to correct inequities have
played a part. But there are many
workers who have enjoyed no in
crease in earnings.
It is too easy to act on the as
sumption that all consumers have
surplus purchasing power: and that
the high earnings of some workers
in munitions plants are enjoyed by
every workers family This easy
assumption overlooks the 1000 900
wage workers still earning less than
4Oc per hour. and millions Of others
whose incomes are almost as low.
It ignores the fact that more than
1000 900 families have not had an
increase OF more than per cent in
their income during the last 18
months. 1t further ignores the mil
lions of salaried. white-collar work.
ers-the school teachers, the clergy
men. the State. county and city Off
cials, the policemen, the flremen, the
clerks-whose salaries have re-
manned low. but whose living stand
ards are being cruelty and inequitably
slashed by higher food prices. 1t
equally ignores others on fixed in
comes-the dependent mother of the
soldier boy with her scant $37 per
month. the widow living OF the pro-
ceeds Of her husbands insurance
policy and the old-age pensioner.
These millions are entitled to be
protected against skyrocketing food
costs 1t is my duty to guard them
against the ravages OF imitation
and l shall guard them unless the
Congress shackles my hand.
These unorganized millions must
not become the forgotten men and
women of our war economy
Not Permanent Solution.
The plea has been urged on be-
half of industrial workers that if
the cost of living is not cut to Sep
tember. or even to May. 1912. levels.
wage rates should be raised to COM
pensate But to raise wages because
living costs have risen will be a.
best only temporary solution.
Raising wage rates increases the
cost Of production, both of war goods
and of the goods whose prices make
up the cost of living. 1t also in
creases consumers spending power
The combined effect of increased
spending power and increased pro-
duction cost is inevitably further
rise in the cost of living; and at the
same time the money cost OF the
war increases. In short. to give
people more money because prices
are rising does not cure the evil, but
| makes it worse. This is precisely
what is meant by the ''inflationary
spiral"
To prevent this spiral Of rising
costs and prices We must hold firm
to the stabilization of wage rates.
But to do this. We must assure work.
. ers that they can get a fair share
Of available goods on legitimate
markets. and at prices so fa- as
practicable on the basis of the levels
which existed on September Is" as
prescribed by the act of october 2.
Whatever theoretical choices may
conceivably be open to us. practi-
cally We will have only two. We
must keep the cost OF living more
| MOO rly in limo with tho 1eya1 nre -