Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-09-14
Prices Of Food
Higher,
Report Warns
Costs Nearly Double
Prewor Levels, Survey
To Probers Notes
By ]. A. O'leary

/ Food prices, now nearly double
prewar levels, may 60 even high
er, the staff of a special joint
congressional committee warned
last night in report which call
ed food costs the most important
factor in the whole cost-of -liv-
ing problem.
The report was prepared for use
of the special Senate House Com
mittee on the Economic Report,
which tomorrow will start a Nation
wide inquiry into causes of the high
cost of living and possible actions
to reduce prices.
One subcommittee will begin
hearings in Providence, R. L, tomor-
row and visit dozen cities along
the East Coast. Two other subcom-
mittees will hold hearings in the
Midwest and Far West.
| The committees experts reported
that the average family was spend
ing $l93 in July, 1947, for the same
goods it could have bought in the
prewar G935-39) period for 500.
The staff study did not include price
increases since July, which one Of
the experts said have pushed food
costs to double or higher.
Corn Crop Big Factor.
In warning of possibly still higher
food prices, the report called atten-
ton to a prospective short corn crop
at a time when corn is urgently
needed for meat production. Meat
is one of the highest priced items in
the average family's marketing.
Another factor which might send
prices higher. the report said, is ex-
port of food resulting from the
character and size of commitments
to be made for foreign economic aid
under the so-called Marshall Plan
or any other adopted by Congress"
The report said the June, 1947, re-
tail food price index was about 5
points above the peak reached after
the last war in June, 1920"
"As of June, 1947, the Bureau Of
Labor Statistics index of food prices
was 80 per cent higher than for the
1858 averages" the report said,
"of which increase one-half had
occurred by June, 1916, and the other
half in the succeeding year"
The experts found the greatest in
crease was in meats. Using the
1858 period as 100, they reported
the index for meats was PIT in
June, this year, as against 1874 in
June, 1916.
Effects Shared Unevenly.
while the high prices of food
may be generally explained by high
levels of current income and con-
sumption, the effects are shared
unevenly by the population" the
report said. For many people, in
comes have not kept pace with rising
food costs. This is particularly true
among lowest-income families and
such salary groups as teachers,
nurses, Office workers, and those liv-
ing on retirement and other pensions
or fixed annuities from trust funds
and insurance policies. For many
of these people, the high cost OF
food has become problem for which
average statistics on the relation
ship between prices and income give
small comfort"
The experts did not attempt to
suggest action that might be taken
to assure fair prices. They said
their study is intended only to be a
factual survey, and that remedies
will be sought by the Congressional
committee
| The fact-finding report was pre-
pared by F. E. Berquist, assistant
staff director of the committee. 1t
has not been reviewed or acted on
by the committee members.
When measured by per capita
expenditures, the rise in food costs
appears even more significant than
the more than 80 per cent increase
shown by comparative index figures
before and since the war.
The report states that the per
capita expenditure for food between
1885 and 1899 averaged $l18 a year.
The same food purchases at 1946
average prices would have cost 5000
and in the second quarter of 1947.
approximately $240, the report
states.
Actually, the per capita spent for
food in 1916 was $27l, the report
shows. The additional amount
above 5000 reflects increased con-
sumption as we'll as shifts to higher
priced foods, especially meats.
Although conceding that the pay
of some wage groups has not kept
pace with rising costs, the report
contends that the average net
weekly earnings of wage earners for
all manufacturing industries have
increased about 100 per cent above
the prewar level.
The key to both the expanded
consumption and higher prices is
found in greatly expanded incomes,
lSee FOOD, Page A-6o