The Omaha guide., 1946-08-24

SQUANDERMANIA back to fru-
gality and thrift.
1t is time, in other words, that
we learned that the great spending
orgy has to end. If it doesn't end
we will have a ruinous initiation.
Economy in government must be-
come a national policy if we are
to successfully make the transit
ton from var to peace without
destruction of the institutions and
form Of government we fought to
preserve.
A MODIFIED OPA
The recently enacted OPA bill
is a compromise between those
who believe the Office should be
indefinitely continued in its old
form, and those who believe that
the time for governmental tink-
ering with the law of supply and
demand is over. 1t is obviously de-
signed as a sort Of transitional
measure, to bridge the change
from a government-dominated
war economy to a free enterprise
peacetime economy.
The most important new feature
is its establishment of a three
man 'decontrol' board with pow
r superior to those of the OPA
administrator. The job of this
board will be to remove controls
from commodities when supply is
in sufficient quantity so that the
free market will automatically as
sure fair prices. If the board does
that job successfully, it will be of
immense aid in getting this coun-
try back to its traditional ways Of
doing business.
In the meantime, the consumers
Of the nation must realize that the
basic solution to initiation lies not
in law, but in vastly stimulated
production and distribution. So long
as the supply of available goods is
below demand, we will continue to
have black markets. So long as
labor troubles, governmental in
reference or anything else blocks
the production machine, and out
of-line price problem will continue
to be a major factor in our nat
ional life.
The distributive machine is do
ing a fine job, and it is ready to
do still better when goods again
become plentiful. Retailers in all
lines Of merchandise paced by the
big chain systems, have sonsist-
emily worked against price in
creases. They cannot of course,
prevent price increases made ne
cessary by higher wage, supply
and tax costs. But they are a con-
slant guarantee of the lowest price
for what you buy, consistent with
the economic conditions Of the
time.
A STEADY MARKET COUNTS
1t should be made clear to the
public that the costs of certain ba-
sic commodities and services like
oil, electricity, and insurance do
not rise in price every time the
market suffers an upsurge.
William r Boyd, Jr. President Of
the American Petroleum Institute
made the statement recently that
the prices of gasoline, fuel oil and
other petroleum products haze al
ways been determined by the costs
of production and the ceaseless
competition among the companies
in the industry.
He said, The petroleum industry.
like other sound American indu-
stries, will do its best to hold the
line on product prices. Under nor
NAL conditions costs vary. and pri-
ces vary with costs. If we all work
together, Undue course not only
can product prices be held, but in
many cases they can be reducer
as full production and efficient OPP
Grafton are achieved by the effec-
tive cooperation of companies, en-
ployees and the public.
A sound industrial policy is not
based on the theory that the great
est profit comes from inflated pri-
ces. Industry depends for its ex-
istence on a stable and steady
market. AS Mr. Boyd points out,
prices reach a natural level when
full production and efficient oper-
alton are achieved.