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Show JpiNGTON KEEPING PRICES DOWN Leon Henderson, newly appointed appoint-ed protector of the public's pock-etbook, pock-etbook, is expected to have his hands full in preventing inflationary inflation-ary price rises, but the powers conferred upon him are considered sufficient to stave off any immediate imme-diate price Boom. The office of price administration administra-tion and civilian supply, which is the name of the office Mr. Henderson Hen-derson heads, is authorized to fix prices if necessary and to prevent products from being withheld from the market for speculative purposes. pur-poses. The chief duty of the new office is to see that we do not have a repetition of the inflation and supply problems which disrupted our economy during the last war. The president believes that only will prices be controlled, but efforts will be made to control the spending of money by the public. This will probably be done In three ways: (1) wide advertising and promotion to get people to invest a large proportion of their increased increas-ed incomes in government defense bonds: (2) heavy taxes on the middle-income group so that part of their increased income, resulting result-ing from government orders, will be returned to the government; (3) educational appeals to our patriotism to refrain from purchasing pur-chasing tilings the production of which might hamper defense production. pro-duction. It is possible that we may-get may-get our first taste of a sales campaign cam-paign conducted for the purpose of persuading us not to buy things. GOVERNMENT ACTION'S The delicacy of our short-of-war moves has been greatly increased by two actions of our government which axis authorities argue are breaches of international law, namely, the refusal of our government gov-ernment to recognize a Nazi-dictated statement from Denmark voiding the agreement placing Greenland under U. S. protection, and our seizure of Danish, Ger- slight increases in prices are expected ex-pected and not undesirable, but he wants to prevent any spiraling of prices which are out of proportion propor-tion to increased purchasing power. pow-er. A 10 per cent increase in prices during the next year will probably be permitted, but greater great-er increases will be fought. Mr. Henderson will probably use persuasion rather than give orders at first in an effort to keep price control on a voluntary basis, but his office will be prepared to take quick action if voluntary control con-trol gets out of hand. During the last six months our national purchasing power has increased in-creased rapidly and will continue increasing each month throughout the summer. Wage increases in farm regions seem to be keeping step with wage increases in pro duction industries. The department of agriculture states that farm wages now are higher than at any time since 1931, that they are 31 per cent above the 1910-1914 average av-erage and that the major part of the increase has come during the past year when they have increased increas-ed 24 per cent. In many states the demand for farm workers at standard wages exceeds the supply, although the department insists that there is no dangerous shortage of farm labor. But it does mean further increases in wages. Well aware of the trouble caused by rapidly rising prices during the last war, the government govern-ment intends1 to see to it that those difficulties are not repeated. Not man, and Italian ships. Secretary Hull has sound arguments to show that he is acting within this country's coun-try's rights in both of these moves and he has made it clear that he doesn't intend to do any back-watering. back-watering. In the Greenland episode he has the backing of the Danish minister minis-ter at Washington who signed the agreement and refused to be recalled re-called by his government on orders or-ders "emanating directly or indirectly indi-rectly from Germany." He stated that so far as this country is concerned, con-cerned, the arrangement is clearly clear-ly within the scope of our Monroe Doctrine. GREATER AID PUSHED The success of the Axis powers in the Balkans has made congress and the president more determined determin-ed than ever to increase efforts of greater aid to Britain. Although we are still avoiding supplying convoys, the president authorized the transfer of 10 of our coast guard cutters to Great Britain to be used for convoy purposes and he has asked congress for the right to purchase idle foreign ships deemed necessary for defense purposes. This ship-buying plan is expected to be rushed through congress to give the president the right to purchase the foreign I ships already seized. It is the present attitude of congress con-gress that defense production must be more rapidly speeded up to the maximum capacity. Congressmen Con-gressmen consider the problems of getting material to England to be of a minor nature that the all-important all-important thing right now is to produce as much and as fast as possible. Some congressmen feel that the lull in the strike situation after Easter might represent a lull before be-fore a storm, as strikes are threatened threat-ened in some c-f the largest plants in the country. But there does seem to be a feeling that labor and employers are ready to come to quick settlements in the face of growing public sentiment against all interference with defense. |