Evening star., 1951-01-28
Easing Of Pay Freeze
Expected This Week.;
Price Ro|Iback Seen
Continued From First Page. }

Continued From First Page.)
frozen at current levels" Mr.. Di
Sale said in a statement, docs
not mean that there will be no
downward adjustments in the fu-
ture"
On the contrary. he said, "the
unresolved question is whether
and to what extent the purposes
and provisions of the (controD
act require, at least for some
commodities, a lower level of
prices. E.
THE further consideration
which the agency will proceed to
give to the prices of commodities
will determine the extent. if any,
to which ceiling prices may need
to be reduced in order to effec-
tuate the purposes of this act"
Initiation Danger Emphasized.
The price freeze set the ceiling
at the highest level prices attained
between December 10 and Janu-
ary Is. This meant present prices
in most cases.
The wage order holds earnings
at their level of last Thursday,
January 25. without exception.
Appeals are allowed.
The Economic Sterilization
Agency emphasized, in a state
ment, that imitation pressure had
become perilous to the national
economy.
If prices had continued to sky
rocket at the rate of the past few
weeks, the increases would have
run 80 to SO per cent a year
and this path leads only to dis
aster and collapse" it said.
In addition. ESA said. the Ma
ton is not even near the rate of
spending for defense which is
contemplated, so inf1ationary
forces already at work are just a
foretaste of those to come.
This situation calls for vigorous
counteraction," ESA said, adding
that eventually it is hoped to in
crease industrial production to
the point where both defense and
civilian demands can be met in
full.
Posting Not Required.
But this is a slow process" the
agency advised, which may take
several years to accomplish.
Meanwhile, the danger confront
ing us is immediate. 1t further
explained:
For every two per cent increase
in living costs, the Governments
defense bill goes up 81 billion a
year-and every time living costs
go up one per cent, consumers
are tapped an extra 81 billion for
the things they have been buying.
Mr.. DiSalle's office said that
under the freeze order grocers and
other merchants would not be re-
quired to post ceiling prices. They
may be so required after more
carefully fitted ceilings have been
applied.
The Wage Board, headed by
Chairman Cyrus S. Ching was
expected to issue soon a list of
workers who will be exempt from
the wage freeze which at the
moment applies to all salaries and
wages. These will include Fed
eral employees, whose pay is con-
trolled by Congress, State and
municipal employees.
1t has not been decided whether
the pay of employees of the rail-
roads, utilities and other indus
tries where rates are fixed by
commissions will be included
under permanent control. The
same situation applies to en-
ployes in industries where prices
are exempted from control by law
such as newspapers, magazines,
radio and television stations.
Welcomed by Congress.
Congress members generally
welcomed the control order while
commenting it was too long in
coming. But Senator Bridges,
Republican, of New Hampshire
called attention to the "loopholes
left in the order by the specific
exemptions of food prices"
Senator Bridges statement did
not mention the device Congress
wrote into the law which says
farm prices cannot be brought
under ceilings unless they go
above parity. Parity is a formula
intended to provide the farmer
a fair return in relation to the
things he buys.
Sterilization officials said that
this provision required exemption
of many food items from the
freeze.
Senator Bridges branded it "the
Truman control order" and said
he could not see how it will be
very helpful to the average con-
sumner in his State.
The Senator declared controls
should not be dictated by political
considerations
The freeze order does not apply
to prices at the farm for raw ag-
ricultural commodities and live
animals
Many Items Exempted.
But it bars increases, at least
for the time being, on beef, veal,
lamb and other foods which are
above parity. That is, the proc
essor, the wholesaler and the re-
l. L. u