The people's voice. [volume] (Helena, Mont.) 1939-1969, 1947-05-09
Setting Straight The Record On
The Price Problem
By CHESTER BOWLES

By CHESTER BOWLE
(The upward trend of prices is now
being widely debated. Here is one
view of the significance and causes OF
that trend. The author was head OF
the Office of Price Administration
from July, 1913, to February, 1916, and
Director of Economic Sterilization
from then until his resignation last
June.)
[ have frequently been asked to eX-
press my views on the upward rush OF
prices which has now been in full
swing since last July.
have refused these past requests
for one reason. Like most other peo-
pie, | am bored by eX-government en-
ployes who spend their time explain
ing how much better things would be II
only their advice had been followed.
Last week, however, | changed my
mind. Some recent explanations for
the price increases of the last ten
months simply cannot go unchalleng-
ed Here are a few of the most SER
ious:
our dlIaCIOuS arguments
1. Certainly, prices are too high.
But incomes are high, too, and so
there's no great burden on anyone.
In addition our people have plenty of
savings to fall back on"
2. "Of course, this initiation is dang
erous. But it was the only possible
way that we could get production roll
ing
3. "Our businessmen and farmers
could cut these high prices quickly
enough if they really wanted to-"
A. 1.-The whole trouble lies with lab
or. with its constant strikes and inces- |
SAINT demands for higher wages"
None of these explanations can stand |
ND under close examination. Each |
one does some group in our economy a |
grave injustice If we are to learn |
anything from this unhappy experience
we should set the record straight with
out delay.
First, let's see what has actually hap
pened to prices since congress decided
to abandon overall price controls last
June. How do the increases of the last
10 months compare with the action OF
prices when effective overall price
control was in operation.
Between Hitler's invasion of Poland
in September, 1889, and February, 1912
prices in general rose with increasing
rapidity. The passage of the Price
Control act in February, 1912, enabled Il
the government to check the rate of
increase But it was not until Pres1-
dent Roosevelt's "hold the line" prog
ram began operating in May, 1943,
that price control really became effec-
tive.
Very Little Rise Before June 80
Between VI day and last June price
increases were necessary on some
products to smooth out
adjustment from war to peacetlme pro-
duction. But even with these post
VI day adjustments, the increase IN
the cost of living between May, 1943,
and June, 1916, according to the De-
partment of Labor, was only 90 per
cent. while the official index OF whole
sale prices rose only S.5 per cent IN
this entire 37-month period OF heavy
pressures.
When effective overall price con-
trolls were abandoned by congress last
June 3d. prices Immediately shot up
ward In July alone the increase III I
living costs equalled the accumulated I
increases of the previous three years. l
In the last 10 months wholesale r
prices have risen 81 per cent-thats
almost as much as in the previous Z !
years, and nearly four times more than