Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-03-12
Conodo's Cost of Living Down
Through Curb on Initiation
Women Aid by Policing Prices,
System of Subsidies Helps

mean saving of some $40 900 .OOt
| to consumers. and employers were
saved about S40,0OO.0O0 in bonuses
And, more important. according tt
/ Gordon, everybody was spared thu
/ uncertain expense of imitation. H,
, doesn't believe there will be an,
/ more cost of-living bonuses REQUIRED
during l943.
Government Subsidies.
You'd think it would have beer
! lot less trouble all around lust tt
/ impose a ceiling on farm products
/ asked Gordon why this was no.
I done and he said that from Ar
administration standpoint it wa.
not practicable-foods are season
able, periShable, etc
Anyway. Gordon had to resort te
a deliberate and aggressive use OF
subsidies to drive down the cost OF
living This was an extension OF
the subsidy policy. Subsidies hac
oeen employed ever since the price.
control plan had gone into opera
uon, but for the purpose of keep.
ing prices from going up. not fo,
the purpose of pushing them down
for instance, Canada imports MANY
OF It's raw materials from the Unitec
states. If the price of raw materials
goes up in the United States then
IL STANDS to reason that the mann
facturer will have to sell his nrod-
uctS at higher prices. And vet the
retailer cannot put up his prices
ABOVE those of September-October
1891 The government solved this
ollemma by substituting the in
creased cost of raw materials.
Fears Z. S. Initiation.
Ihls is a good place to mention
mat Canada is constantly LOOKING
over It's shoulder with fear and
trembling at the United States
ieSC prices or wages get out of hand
there. II they do, Canada knows if
Is sunk-it couldn't possibly hold
the line against imitation,
Altogether Canada has paid ont
IN subsidies s5o,oOo.o 900, not includ-
ing the S35, 5000, 900 that will be snent
Speclhcally to decrease prices.
Mr.. Gordon said that subs;d;es
We're of themselves not inf1ationarv
l asked a Canadian economist about
mat and he said Mr.. Gordon was
rlght. He said the sum snent n
GATE on subsidies was onlv a dron
IN the bucket when compared to the
'otal being spent on the war He
aoded that of course. if subsidies
rose to an appreciate percentage
then the situation might be dan,
gerous. 'i
Farm Prices Ma jor Issue
80 the continued success of price
celnngs in Canada would seen
nencelorth to depend upon what is
oone ABOUT farm prices and how
hiuch OIL the government has tn
pour into the machinery in the form
OF subsidies. " ~
MT. Gordon is steadily, he said
geItlng the subsidy policy on more
spartan basis. The list of those ~
"hom subsidies are to be paid is
constantly narrowing.
Mr.. Gordon has achieved tbiv
through his ti-frills-and- furhe~
10" program. That is, he has
brought competitors together and
got them to agree on standardiza-
rlon; simphfication and economy in
marketing practices so that their
operating costs were lessened and
they could adhere to the price coil
ing without a subsidy. Mr.. Gordon
relles greatly on the conference
table to settle issues.
Like OPA head Prentiss Brown in
the United States, Mr.. Gordon also
administers rationing in Canada
Gasoilne, butter, tea, coffee and
sugar are rationed. There is M
point rationing-yet.
'Released by the North America,
NewSpa per Alliance Inrl