The midland journal., February 19, 1943, Image 7

About The midland journal. (Rising Sun, Md.) 1885-1947

Image provided by: University of Maryland, College Park, MD

                
Price Rule Planned to Prei
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Control of Wages, Costs, Prices
Will Close Gap Between Bigger
Income and Much Less Goods
TAXES AND BONDS TO ABSORB PART
OF IDLE PURCHASING POWER
“Step right over this way, ladies
and gentlemen,” barks the Farm
Sale Auctioneer, "and we’ll sell 25
head of the best cattle in Brown
county.” Over to the feed lot moves
the milling crowd of people who
have come to the farm auction. The
bidding starts: “What am I offered
for this prize-winning Guernsey cow?
$25? Do I hear thirty? Thirty-five?
I have thirty-five. Who’ll make it
forty-five? Now who’ll make it fifty
five ...” And so it goes. Maybe
the cow sells for $55 and maybe she
sells for SIOO. It all depends on how
much money the bidders have, how
many cows there are for sale, and
how badly anyone wants a cow.
H you have ever attended a farm
auction sale, you can understand
why the greatest need of today is
for economic stabilization. For the
principles which govern a farm auc
tion sale are not much different from
those that govern the buying and
selling of all commodities.
Suppose that John Brown, who has
a small farm at the edge of town,
has recently got a job in a defense
factory. His wages, added to his
ordinary farm income, give him
more money than he has had for
many years. With that money Brown
intends to get himself more good
livestock and he goes to the farm
auction to buy some cows. He can
bid more for cows these days than
formerly and he raises the bid be
yond the true value of the animal.
Other farmers will either have to
exceed his price or go without cows.
Buying Urge Stimulated.
Now, suppose that thousands of
John Browns get well-paying jobs
with wages higher than they have
ever drawn before. They don’t all
live oh farms. Many of them live
in towns, small cities, big cities. And
they want to buy many things be
sides livestock. They want to buy
foods of all kinds, clothing, furniture,
jewelry, luxuries of all kinds. With
their newly acquired wealth they
will pay fancy prices for anything
they want, eveh though they may not
need it at the time.
And then, just remember that
while all' these people atfe wanting
to buy things, the factories of the
United States are forced to devote
most of their facilities to making
guns, and tanks, and bombs, and
planes. Other things must wait.
Clothing, furniture, household goods,
become scarcer and scarcer. Prices
skyrocket. Wages can’t keep up.
And right there you have inflation.
Inflation Dizzy Spiral.
Inflation is a dizzy spiral that goes
ever higher and higher unless some
thing is done to slow it down. The
opposite of inflation is economic
stabilization—which means that your
dollar will buy about as much of
any commodity tomorrow as it does
today, as much next week as it does
tomorrow. Everybody acknowledges
the value of economic stabilization.
To get it, the government is doing
its best to apply the brakes to this
devastating inflation spiral.
These brakes are seven—seven
controls on income and expenses.
1. Heavy taxation to pay war
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Farmers Pool Resources to Maintain Production
The tremendous increase in industrial activity in the bif cities has
caused a corresponding rise in wages and attracted a large portion of the
farmers’ working force. To hold on to his help and to meet the record de
mands of the government for food, the farmer has been compelled to raise
wages. Rise in wages usually is followed by higher prices and demands
for still larger wages. Unless the trend is checked, a disastrous inflation
ary spiral sets in. Price stabilisation is intended to control both wages
and prices and prevent the two from getting out of hand. Because of the
shift of labor from the farm to the factory and the demands of the armed
services, many agricultural communities will be compelled to pool their
working forces to keep up, let alone increase, their production.
Nation Will Have Textiles for Its Needs
Thwagh textile to take care of the
nation's needs will be available this
year although a 10 per cent drop in
production may occur, the Textile,
nothing and Leather division of the
WPB has reported.
Conservation measures already in
force should supply the increased
military and foreign requirements,
the division said. Last year, these
sources took almost one-third of the
record production of 13,500,000,000
linear yards.
costs and reduce spending by every
person.
2. Price ceilings for food, goods
and rents.
3. Stabilization of wages and sal
aries.
4. Stabilization of agricultural
prices.
5. Increased savings through buy
ing of war bonds.
6. Rationing of scarce goods to
insure fair distribution.
7. Discouragement of the use of
credit or installment buying and the
encouragement of the payment of
debt.
Why Control Is Needed.
First, let’s see why control of
wages is necessary.
If history teaches us anything, it
is that wages never can keep up with
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JAMES F. BYRNES
Price Czar
In the hands of James F. Byrnes,
former Supreme court justice, has
been entrusted the job of stabilizing
the nation’s economy so as to pre
vent a runaway in wages and prices
which would lead to the disaster
of inflation.
prices. As a worker finds he has to
pay more money for food, clothing,
shelter and the other necessities of
life, he insists on getting more
money for his work. His employer
has to raise his wages, because oth
er employers are needing men and
they, too, are paying more. Farm
ers lose workers to factories and to
the armed services, and they also
offer high wages. Some farmers, at
tracted by the high wages in fac
tories, leave their farms. Thus it
goes—higher prices, higher wages to
pay those prices, then still higher
prices, still higher wages, and so on
in a never-ending inflationary hurri
cane. That’s why wages must be
controlled.
The present law says that wages
cannot be raised without authority
to do so. That doesn’t mean that a
man who does more work tomorrow
than he did today won’t get paid for
it. He will. If he is capable of
doing a more highly skilled job to
morrow he will also get more
wages than he did today. If, under
a merit system, he earns a raise,
The supply available for civilian
i use after other requirements last
1 year fell about 11 per cent under
; 1939. The additional drop of 10 per
1 cent this year is expected to reduce
. supplies to the level of necessity.
1 However, the supply and quality
of textile should continue to furnish
i Americans with both durable and be
! coming apparel. Both trends and
i fashions undoubtedly will lead to
neat and economical styles.
MIDLAND JOURNAL, RISING SUN. MD.
vent Inflation
-
he will get it. If he works for an
employer with fewer than eight em
ployees, he can get an earned raise.
But, by and large, raises in pay
for doing the same job with the same
skills and the same output will not
be allowed.
Salaries Limited.
Salaries, too, are limited. No man
may draw more than $25,000 a year,
after deducting federal taxes, a
measure designed to prevent any
body from profiteering on the war.
You see, even the boss cannot raise
his own salary when he wants to. So
much for wages. They had to be
stabilized to stabilize prices.
Then consider the necessity for
price stabilization.
It would be unfair to workers to
fix their wages if prices were not
also regulated. Accordingly, the gov
ernment began taking price stabili
zation measures as far back as May,
1940. At present around 90 per cent
of the things people have to buy are
under some form of price control.
Obviously, there may have been
some temporary injustices done to
producers, manufacturers, and dis
tributors of goods by the price con
trol regulations. For that reason,
there will undoubtedly have to be
adjustments in some prices from
time to time. But—in the long run
prices will be maintained at a rea
sonable level where every man,
woman and child in the country will
be able to get all that is needed.
Why all the other curbs on infla
tion?
More Money, Less Goods.
This year the total earnings of
all the people engaged in war and
civilian production will be about 130
billion. That much money will be
available to pay taxes, to spend, and
to save.
But we cannot possibly produce at
present price levels 130 billion dol
lars worth of food, clothing, furni
ture, household utensils. As a result
the rest of the money will not be able
to buy any consumer goods. Fed
eral and state taxes will take an
other 15 billion. The people will
save possibly as much as 30 billion,
including war bond purchases. But
that still leaves about 85 billion dol
lars to bid for the purchase of not
more than 77 billion dollars worth of
things, at current prices that con
sumers want. If price controls fail
to hold, people will resort to bidding
against each other for the avail
able goods on the market. If that
happens, there will be ‘‘black mar
kets,” places where unscrupulous
persons sell goods at exorbitant
prices regardless of the laws.
Equal Distribution.
Rationing provides assurance that
everybody will get his fair share of
the goods that are earned by such
programs. Otherwise, the person
with the most money would tend to
bid up the price and to secure an
unfair share of the available supply.
No one would deny that this must
not be allowed to happen.
The success of this anti-inflation
ary movement rests jointly on the
government, the law - enforcing
bodies, and in the greatest measure,
upon the general public. Unless the
people in general realize that these
brakes on inflation are their only
guarantee of stabilizing the cost of
living, it will be impossible to en
force them.
Through 1943, and as long as the
war lasts, every man, woman, and
child in America must try his level
best to prevent the cost of living from
rising. We can do it if we try. We
can refrain from trying to “beat the
ration” on scarce goods. We can get
along with reasonable stocks of all
goods. We can aid in salvaging ev
erything that will contribute toward
the winning of the war—rubber,
metals, grease, paper, and other
materials as they are needed. We
can also save every penny and every
dollar that we do not need for decent
living and put it into war bonds im
mediately. And last, but not least,
we can do without many things if
we have to.
Last Report
Fulfillment of his duties as price
administrator was claimed by Leon
Henderson in a report to congress
which marked his retirement from
the office.
“I was directed to stabilize prices.
That directive was obeyed,” the re
port said.
“I was directed to establish prices
alike to buyer and seller. That di
rective was obeyed.
“I was directed to stabilize rents.
Rents have been reduced and sta
bilized.
“I was directed to distribute
scarce goods on a basis of fairness
to all. That directive, too, was
obeyed.”
Henderson’s review of these direc
tives and their execution no doubt
was aimed at criticism of his activi
ties as the OPA head. It was his
task to impose regulation hereto
fore foreign to America.
Mr. Henderson warned that the
“honeymoon” period of business ex
pansion which has lifted profits far
above normal peacetime levels has
come to an end and that ahead lie
increasing difficulties. Costs are in
creasing month by month with press
ure on price ceilings.
While the extremely favorable
profit position has provided industry
with an ample cushion to absorb
these pressures within the frame
work of stable prices, according to
Mr. Henderson, “For the.future, eco
nomic stabilization requires a more
rigorous policy.”
VAI.E
Released by Western Newspaper Union.
Marguerite chap
man’s glad to join in the
share-a-ride movement (she gets
just enough gas to drive to and
from work at Columbia studios
every day), but on the first day
that she worked in her new pic
ture, “Destroyer,” she worked
out a new stunt. Attached to her
car door is a small box with a Red
Cross painted on it, and an opening
for coins. Her passengers are glad
to drop in the bus fares that they
save by riding to work with a movie
star I
—* —
Remember “The Dark Angel”?
Samuel Goldwyn will make it again,
starring Teresa Wright. This third
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TERESA WRIGHT
version will bring the story up to
date; the hero, an American officer,
will be blinded in fighting at Guadal
canal.
—* —
Lum and Abner of radio fame
have done a great service for the
motion picture industry; RKO re
ports that thousands of persons who
had never before seen the inside of
a movie theater now go to the pic
tures made by these two radio fa
vorites. They’re now starring in
"Two Weeks to Live.”
—* —
Tim Holt was booed in public while
making his last picture before en
listing, “Hitler’s Children.” He had
to give the Nazi salnte while work
ing on location at the Los Angeles
Orphans’ Home, and a group of
school boys watching from the side
walk cut loose when he made that
scene. A canvas screen had to be
put up before he could go on. Well,
RKO wants audiences to feel that
way when that scene is flashed on
the screen, but young Holt says that
it was the most embarrassing mo
ment of his life.
*
——
Douglass Drake, Columbia con
tract player, enlisted in the army
six months ago, and thought his
screen career was done for, for the
duration. But he was given an hon
orable discharge for injuries re
ceived while in service, and returned
to be tested for a role in the Rita
Hayworth-Brian Donlevy comedy,
“My Client Curley.”
Jean Porter of Cisco, Texas, ar
rived in Hollywood minus a Southern
accent—but got her first screen role,
in “The Youngest Profession,” be
cause of her assumed Southern
drawl. Then she was cast in “Fac
ulty Row,” as a co-ed with a South
ern accent!
“Casablanca” has scored such a
hit that there’ll be a sequel to it,
“Brazzaville”; Humphrey Bogart
and Sydney Greenstreet will con
tinue their characterizations from
the first film, and it’s likely that
Geraldine Fitzgerald will have an
important role.
—* —
Barry Wood was voted the most
popular male singer on the Columbia
Broadcasting System, in three ma
jor radio editors’ polls—whereupon
he left that network to become an
NBC star, taking command of the
new “All-Time Hit Parade,” the pro
gram that now succeeds “Informa
tion Please” on that Friday night
spot, and coming from Carnegie Hall
in New York.
Bandleader Woody Herman, who’ll
be featured in “Quota Girl” with
Sonja Henie, has proved that the
adage, “Like father, like son” is all
wrong, pointing out that following
dad’s footsteps would have made
him a vaudevillian, Sammy Kaye a
civil and Rudy Vallee a
village druggist. Kate Smith would
probably have been president of a
woman’s club. Mark Warnow’d be
a concert violinist.
—* —
ODDS AND ENDS-Dinah Short will
probably appear in a Goldwyn picture,
“With Flying Color*” . . . Feu should tee
Anita, of the ”Tommy Riggs” show, doing
her marketing—on roller skates ... Deriel
Jeen Johnson ha* just received a new
Metro contract . . . Edgar Bergen’* going
to coetar with Kay Kyter in a film musi
cal, tentatively called “Keep 'Em Sing
ing” . . . Gary Cooper and Ingrid Berg
man will turn into one of those popular
movie teams, first thing they know—they
have the lead* in Warners’ "Saratoga
Trunk” .. . Harriet Hilliard'* slated for
a leading role in "The Falcon Come*
Bed*.”
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—-A / 5-10 yr.
School Outfit
LJERE’S the answer to the
* school outfit or every-day out
fit you want to make your little
girl. You can expect long wear
from the gracefully shaped jump
er—if you make it in rayon gabar
dine, corduroy, flannel or wool
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j A General Quiz |
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The Quettions
1. When did congress fix the
number of stripes in our flag at 13?
2. What name is given to the
green coloring matter of plants?
3. How many states were there
in the Confederacy?
4. What state is known as the
“Mother of Presidents”?
5. What is the only New England
state having no coastal area?
6. For every American and Brit
on who can read and write Japa
nese, how many Japanese can
read and write English?
The Anawera
1. The year 1818.
2. Chlorophyll.
3. Eleven.
4. Virginia.
5. Vermont.
6. At least 10,000 Japanese.
★ IN THE SKI TROOPS *
they say:
"SNOW BUNNyV begins
% EGG BEATER" for head-over-Heel* *pffl
"ghost suit 0 for white camouflage uniform
CAMEL for the Army man § favorite cigarette
takes! they're^
|l THROAT—AND A
m r/9<r/A/m A TO AAV 1
■ F/KST/HTHE 3GRWGB \ lASFBf
With men in the Amy, die \
Navy, the Marine Corps, and
m the Coast Guard, the favorite WS9mU
cigarette is Camel.(Based on
ml actual tale* record* in Poat jfIBBB Ok
I Exchanges and Ctntccofc) I / I _ MB
B M Bm -
m Wbß jof& mmm mb "w
crepe. You’ll have variety, too, II
you make several blouses in white
and colored broadcloth, flannel or
pique.
* • *
Pattern No. 8232 C Is designed for rises
S. 6,7, 8, 9 and 10 years. Size • Jumper
requires 2>,b yards 39-Inch material, short
sleeve blouse lib yards.
Send your order to:
SEWING CIRCLE PATTERN DEPT.
IN Seventh Are. New York ;
Enclose 20 cents la coins lor each
pattern desired.
Pattern No. Size
Name
Address
Swore in 9 Presidents
Chief Justice Roger Brooke Ta
ney, famous for handing down the
decision in the Dred Scott* esse,
administered the presidential oath
to Martin Van Buren, William
Henry Harrison, John Tylerj
James K. Polk, Zachary Taylor,!
Millard Fillmore, Franklin Pierce,;
James Buchanan, and Abraham
Lincoln.
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1
If you know a Navy man, don’t
ever call him a “gob”—sailors
consider the name an insult. You
can get on the right side of him
though if you offer him a Camel—
or better yet, send him a carton.
Camels are the favorite cigafetfe'
with men in the Navy (Army, Ma
rines, Coast Guard, too, for that
matter) based on actual sales rec
ords from the service men’s
stores. Local dealers are featur
ing cartons of Camels to send to
any member of our armed forces
1 anywhere. Send him that Camel
carton today.—Adv.
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WaEj/d&E%3£M& double o
SINGLE EDGE
Manufactured ond suoronteed by
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