The Wilmington morning star., 1947-09-27
Last OPA Prices
BY ARTHUR KROCK

WASHINGTON, - When the President
next Monday meets with the leaders of
Congress to discuss "world problems"
COCO manners will doubtless prevail as
usual. Therefore,, there will probably be
no dispute over the respective responsible
ity of the two major parties for existing
high prices of food if these prices come
into the discussion. The debate on this
point to which Senator O'Mahoney and
Senator Taft lave challenged each other
is not likely to have it's prologue there.
But the cost of food in the United States,
even, if the conferees confine themselves
to a survey of needful European ~calories
and the means to supply them, will be
strongly in the minds of those gathered in
the White House. And, since there is poll
teal dynamite in the subject, the prophecy
seems safe that neither the Republicans
nor the Democrats will say anything after
ward, or agree to any communicate, that
nay explode it on their own premises.
Outside, however, the argument over re-
sponsibility will continue to rage, led by
representatives of labor unions and other
group who are pressing for a renewal OF
compulsory controls and rationing and are
blaming Congress, while excusing the ad-
ministra alton. for the rising scale of food
prices. The system of voluntary rationing
which everyone now expects the President
to call for, with government assistance,
may subdue for a while the demands for
compulsion. But it will not end the politi-
cal argument.
In this space, in the issue of Sept. g,
one phase Of this was exa,rined-compari-
sons of the last prices for certain food
stuffs under OPA with prices being asked
last week for the same viands. And it was
pointed out that these comparisons (prlrne
beefsteak 81 cents a pound then, 81 now,
etc., were deceptive fer several reasons
One reason is that most of the OPA
prices in that period and for some tine
before were meaningless because the
shelves in retail shops were empty of the
articles. Another is that in numerous in
stances the black market prices at that
time were as high as or higher than at
present. And it was briefly noted that
heavy government subsidies were required
to enable the OPA to fix prices of certain
foods, ever though these foods were unob-
tainable by the consumer.
Some details of those subsidies will help
to demonstrate the Righteousness of the
OPA prices now being quoted as an argu-
controls.
To fix the true OPA prices the cost of
the subsidies to the taxpayers, the con-
sumers, would have to be pro-rated and
added to the paper prices set by the agen-
cy. For, though the consumers did not
pay this impost in the shops, if they were
| able to obtain the items on which the
prices were published, they paid it to the
tax-gatherer
The Roosevelt administr alton came most
reluctantly to price-fixing and rationing
and adopted a broad system of controls
only after the inflationary pressures OF
emergency and war were already power
full. Up to that time its economic policy
had been to force up the price-scale for
both goods and services, and it was very
difficult to put a check on the conse-
q%uences. But this became necessary, politi-
cally and otherwise, and, knowing that ra-
tioning and price controls (of food espe-
cially) would not halt the war-born squirt,
the administr alton adopted the subsidy
program.
According to the Byrd report and other
sources, the government in fiscal 1942-1946
spent about $5.5 billions in direct subsidies
to keep down prices, about $4.4 billions of
which was used for foodstuffs. In fiscal
1916 alone these subsidies amounted to ST
billion, of which 1859 millions was for food
all coming out of the pockets of the
taXpayer-consumer.
Of the total bill for these artificial price
restraints about SIT billion was used for
meats, at an average of approximately S
cents a pound-pork, "A cents; veal, 3
cents; beef, 40 to SO cents; and lamb and
mutton, 6 cents. These subsidies lapsed
between the time President Truman We
toed the first OPA extension bill and. after
signing the second, reinstated meal con-
trolls. But they were resumed for the sew
eral weeks that followed before the Presi-
dent abandoned all controls, meat included.
The butter subsidy cost the taxpayer
$185 millions, at IL and Is cents a pound.
That on dairy production and fluid milk
cost 1920 millions-1.3 cents a quart on
fluid milk by retail. That on flour was
about 1854 millions, or l cent on every
loaf of bread.
To make the comparisons of OPA prices
with present ones mean anything at all,
the amounts per pound, per quart and per
loaf given above. and per case on eggs,
must be added. because that is what the
articles actually cost the consumers who
paid for them in these two ways, one di-
rect and one indirect. And. to clarity the
current dispute over ~who-dun-it, with ref
erence to the upward surge in uncontrolled
prices. it is necessary to insert the fact
that the government is still Substituting
many farm products. Since both parties
are equally responsible for this extension,
the political debaters rarely mention it.
Yet even when the subsidies under OPA
are added, the fact remains that for a
long time before the agency died it was
pricing foods which could be obtained in
the black market only.-New York Times.
Quotations