Evening star., 1947-10-05

1NC<AASS MAO1AtCu 6ACu~y AA We
accepted methods Of control. !
Argentina has less imitation b,
In controlling prices, although
armed with dictatorial powers over
exports, imports and internal bllsi-
ness.
4 In Argentina, Chile and Cuba, Of
hcial controls have been criticized
as inadequate and in nearly all
countries people have expressed dis
satisfaction because their govern
ments have failed to give them all
the rosy peacetime benefits dreamed
Of during the war.
Prices Rose, Quality Fell
Rent freezing was and is one Of
the most successful measures
throughout the AmericasSbut hous-
ing shortages developed everywhere
The cost Of living in many coun-
tires rose to five times the prewas
standard and in Chile it was null
tiplied by six Much Of the in
creases came after the end of the
war when governments began to
relax restrictions.
Special circumstances seemed to
have little effect. Venezuela, rich
through oil exports, Cuba with valu-
able sugar, and Argentina with rigid
government control or actual opera
ton of banks, exports and imports,
all are suffering severe imitation
with no easy, quick remedy in sight.
Not only did prices 60 up, but
Usually qualities went down.
Trend Now Is Down
President Miguel Aleman took
drastic action in mid-July by pro-
hibiting luxury imports to conserve's
Mexico's dwindling dollar funds.
These had reached 1912 900 900 when
war ceased but are down to $780,
100000, including legal currency
backing and other funds not strictly
available to meet Mexicos adverse
balance Of trade of about $4,000 900
monthly.
When Aleman took Office Decem-
Der /, 1916, he ordered the Bank of
Mexico to refuse credit to specu-
lators and to luxury importers and
appealed to manufacturers and re-
tailers to lower prices.
Department of National Economy
figures show the 1s47 cost Of living
is nearly five times the 1884 stand
ard. Wholesale prices have more
than tripled and retail prices range
between five and six times those of
1884.
Foreign Buying Barred
Mexico's prohibition of luxury i'm
ports affects about one-seventh of
Mexico's foreign buying. After the
embargo the demand for dollars
dropped about so per cent. Such
things as automobiles, pianos foods,
fine textiles and things bought only
by the wealthier people are barred.
These measures, coupled with
Mexico's tourist dollars and a ply
Geological campaign, are supple-'
mented by Aleman's industrializa-
ton and development plan. Aleman
is encouraging establishment of fac
tories, even by government invest
ment.
Textile and shoe plants, i'm
portant here. are being aided to
modernize their methods so they
can produce more cheaply.
Work has been hastened on elec-
trio waterpower projects and irriga-
ton systems to give industry cheap
power and to increase food produc-
ton. Largely through government
measures. Mexico is able this year
to export instead of import sugar,
Workers rents have been frozen
in many countries from Mexico to
Argentina and with much success.
Here's the situation in other coun-
tries:
Argentina:
Imitation came late to Argentina
but it hit hard when it did. Gov
ernment figures show prices are
about twice as high as in 1889 but
only 40 per cent higher than in 1943.
However, the figures take no &C
count of the lower qualities sold for
higher prices. Itemized accounts
for an average upper -middle-class
household show an increase Of 118
per cent in the last 18 months.
Higher Labor Costs
Increased production has had no
effect in bringing prices down. For
one thing, many Of the higher prices
are due to higher labor costs spring.
ing from government-ordered in
creases to nearly all workers. For
another, the government has re-
stricted imports of many articles to
save foreign exchange and many
types of consumer goods still are in
short supply.
Rents have been kept down to
tenants through government order
and all leases have been extended
several times.
Cuba:
Cuba's policy of Official control"
Of prices has been sharply criticized
by producers, industrialists and i'm
porters, who blame 1t for the de-
velopment Of black markets.
Despite the governments inten-
tions to maintain price ceilings to
hold down the big imitation of the
postwar period, imitation will con-
tinue until Cuban economy is favored
once again by the golden river of
sugar which represents Its principal
national wealth.
Imitation, apparent In smaller scale
during the war, is threefold what
H. uyas two Years sco Most Cuban