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Show LJimo the Inflation Threat Will RICH COUNTY REAPER. RANDOLPH. UTAH Become a DreacfRealify If THE CHEERFUL CHERUB Everyone Scrambles for Excessive Profits and Warms Only Prices During BARUCH PREDICTS INFLATION WASHINGTON. Elder States- man Bernie Baruch revealed some interesting figures on inflation resession cently in an with 14 younger congressmen at his Shoreham hotel apartment. Baruchs prediction was that the nation was hell-befor inflation and soon. Piecemeal .increases in wages, profits and the cost of living have been uneven, Baruch said, ;with wages lagging behind. For that reason he no longer favored his prewar idea of a freeze on both prices and wages. Our only hope, said the elder statesman, is that we can weather the next six to nine months without running into serious inflation. If we do that, our chances of a strong recovery from the war boom are A. SHEAD By WALTER Staff Correspondent WNU war the years, if we beDuring with rationing and came peeved ice control it was the national habreconversit to cuss OPA. During of 'the from captains people, ion, line and into industry on down the the ranks of congress, blame many and oft-ti- funny and the controls instituted for protection of the American peoAnd, as is the case in any hu- OPA man institution, the OPA has made mistakes, errors of judgment. . Congress has been deluged with business letters from constituents, men and consumers, concerning real or fancied ills and discriminati- ons which were laid at the door of the Office of Price Administration. And congressmen, being human too, let the blame rest on OPA, passing the buck along. But despite all this criticism, despite verbal beatings which tore to shreds the actions and policies of OPA, congress dared not eliminate the agency, despite strong pressure, and by an overwhelming majority voted to continue OPA and the price control policy until next June. And every poll taken of the American people showed, despite their beefings, their sound common sense prevailed and 75 out of every 100 people favor continuing price controls for at least some months to come. Only in recent weeks various groups in trade and industry have been increasing pressure in calling for an end of price controls, particularly in the building and housing industry, preferring to let prices find their own level. As a matter of fact and record, had it not been for the OPA and the policies of rationing and price control, the American people would never have been in the favorable position they are in today to face whatever may come in these months of reconversion growing pains. For price controls have held the line agabst inflation and rationing controls have seen this country the best fed in its history. Most folks dont understand inflation and what it means, but most people do understand and resent and fear high prices. The records show that every major war in which the nation has been has been engaged During World War I prices rose swiftly. After the armistice on November 11, 1918, there was a sudden dip, lasting only three months. Then the upsweep was resumed, soaring until of 1920. The price level more than doubled between 1917 and midyear 1920. When prices broke in Jaer months of 1920, a toboggan slide began that brought ruin to millions. that the general level of price fluctuation remains steady. Farming has become one of these specialized industries, relatively, and a great many of the things used on the farm and in the farm home are purchased. Too, many farm investments and obligations incident to the farm business are long term obligations, and so the behavior of the price level means much to farmers. For instance, I was talking to a Pennsylvania . dairy farmer in Washington recently.' He lives in the potato country of Pennsylvania and when I asked him how his potato crop was he said: Well, I didnt plant any. I figured my business is dairying and I let the potato farmers raise potatoes. What is inflation? There are many long and technical answers to that question. But about the simplest answer this writer can find is that it is a situation which creates an unfair change in the purchasing power of money. For instance, a farmer who borrowed some money in 1913 could have taken $5 of that borrowed money and bought 40 pounds of meat, 152 pounds of hour, 91 pounds of sugar or 77 yards of gingham. If he paid back that loan in 1920 during the period of inflation, the lender could have taken the same $5 and Stable prices for farm products are best for the farmer. Any temhe might make through rising prices would be eaten up by increasing cost of manufactured things that he has to buy. porary profits out-rea- bu-tfa- n 0 Prgram- - By compari-h- , living costs rose more than 84 ,, Cent in a like period after the break of the First World war t!lere was no rationing or e. control. Labor unions declare ris in the cost of living has in-rp- v- more than 29 per cent, .a Per cent figure, but ev n, So If that is true, it does not r. tae livin heights to which doling g costs went after the last war. because of the nature of fhCrs bnsiness, suffer more th n any other group from infla-an- d the. crash which inev-fa- J .follows. As a matter of wakes little difference nth the prce level may be, so W- as it remains, stable to f.ssuminS that the incomes various occupational ThUps ar far aQd equitable. more specialised And the commercialized the bnsi--s is the more desirable it is ... - - WNU Features. Classified Department AUTOS, TRUCKS & ACCESS. CJSLSJtbouVCjM The huge pent-u- p demand for products which we will see during the next nine months is a very serious threat, said Baruch, stressing the importance of holding prices down. BUSINESS & INVEST. OPPOR. He amazed his listeners by sayPLASTIC RUBBER Rubber for making any mold for ing that he is completely opposed to Liquid cold mixed, quick setting, chip proof plastax reduction of any nature at this ter, Castone, Castwood Plastic gifts, plaques, novelties. Sample 22 oz. with time. Not only does the govern- full directions $2.93 postpaid. DIEGO PLASTIC PRODUCTS ment lose needed revenue, but it is S8738AN California Street. San Dlero. Calif. an unhealthy thing for our general economy, argued Baruch. INSTRUCTION Rep. Andy Biemiller of Milwaukee BARBERS ARE IN DEMAND asked what Baruch thought of the Barbering taught in a few months. Leant business with a big income. statement by General Motors pres- a permanent SALT LAKE BARBER COLLEGE 170 Regent St. ident C. E. Wilson that if wages are Edw. F. Gillette. Mgr. 30 raised per cent, prices must go up 30 per cent. Baruch talked at some MISCELLANEOUS WE BUT AND SELL length on the general question of risFurniture. Files, Typewriters. Adding prices, but gave no direct an- Office Safes, Cash Registers. swer. Finally, Biemiller repeated ing Machines, SALT LAKE DESK EXCHANGE Salt Lako City, Utah. IB West Broadway, his question. Im afraid I cant agree with Mr. WANTED TO BUT Wilson, Baruch said. - ' Ship aU of your raw furs, rabbit skins, hides and wool to NORTHWESTERN WAGE NOT PRICE INCREASE BIDE AND FUR COMPANY, 463 Sonth 3rd West. Salt Lake City, where you will Isnt it true that industry can always receive highest market prices. 30 a cent give wage increase per without having to raise prices more than about 7 per cent? Biemiller Buy Victory Bonds! persisted. You are approximately right, Baruch agreed. I believe the figure you may have heard is actually SNAPPY FACTS 8 per cent. ' Baruch also told his guests that he felt we were making a mistake in speeding manpower RUDDER I demobilization. With the world in its present situation, he said, it seems .to me it would be wiser to proceed slowly with deTwenly-fiv- a years ago pauen-g- ar mobilization, in order that we cars vied only throe to not weaken ourselves at a time five pounds of rubber, not when power is apparently still counting tires. Today the aver an important thing. age car contains fifty pounds He agreed also with an idea proof rubber products. posed by one of his guests, Estes More than half of dl the estimated of Chattanooga, to have cab100 million automobile wheels In inet members and other high ofAmerica are now rolling on synficials appear on the floor of conthetic rubber. gress where they can be questioned Nanking University Is experiby congressmen. Such a practice would make for much greater comenting with a new type of seed with a view to growing operation between the executive and rubber in some of the arid Baruch legislative departments, of China. regioas said. New automobiles built this year Present in addition to Biemiller will be delivered without spare and Kefauver were Representatires. tives Albert Gore and Percy Priest of Tennessee, John Sparkman of Alabama, Mike Mansfield of Montana, Henry Jackson of Washington, Jerry Voorhis and Chet Holifield of California, Bob Sikes of Florida, Mike Monroney of Oklahoma, Bob Ram-spec- k of Georgia, and Jamie Whitten and Arthur Winstead of Mississippi. e . ONTHETHINGSYOUBUY accompanied or followed by a major inflation, followed by deflation of e(iual proportions. Rise Held to 29 Per Cent. And for the first time in our na-n- s thanks to OPA the history, ost of living, during and immedi-- . bowing this war, has been hold k fairly steady. From the of the war to' the end of 1944, Vln u costs, as measured by the f labor rose less statistics, an 29 per cent, and most of that before May, 1943, when stfv!VWeTe inserted into the price just surprised. ft.TC"'! good. HOLDING THE PRICE LINE he Its Ivfcrd to see. vKe.t tbinds ere For IF this is life Im nt jokes cracked about the ple. old I surmised. War. of our ills on OPA. There have been ridiculous that Im find tke world Is not a. bit z.s. I Controls of OP A prevented Runaway the Nov bought only 21 pounds of meat, 62 pounds of flour, 26 pounds of sugar or 23 yards of gingham. The borrower returned the same number of dollars, but he did not return the same amount of purchasing power. 1!4 Million Farms Lost. Inflation during and following the of this million a country approximately and a half farms. Why? Because prosperous farmers during the war invested their money in land at inflated prices. They "went into debt for machinery, for homes, barns and other commodities at inflated1 prices. Then the purchasing power of the dollar changed and the deflation which followed the inflated values brought about the inevitable crash. Chester Bowles, the boss of the OPA, is a business man. He was the head of a large advertising agency which was in daily contact with big business. So he knows big business practices and he has become the rock upon which the pressure groups are dashing themselves in an effort to break price control. Chester Bowles has taken his stand against price inflation and for price control, because his office is flooded with hundreds of letters evwith ery week testifying to the fear which people view inflation or high prices . . . and these letters come from big and little people alike . . . from farmers, workers, housewives, consumers, small business men. One theme predominates . . .they want last war lost to the farmers to be assured that the cost of living or the cost of operating a farm or a business will not be permitted to go up into an inflation spiral. They want price controls continued for the present. All three of the major national farm organizations have strongly supported the price control proLabor organizations, too, gram. have given unstinting support. The farmers in the older age brackets do not easily forget what happened when what few controls existed were dropped shortly after the armistice in the last war. At first, prices slumped rather sharply in some commodities, but within a few months, after.' reconversion and workers Returned to their jobs in peacetime plants, the downward trend was reversed and within seven months the inflation boom was in full swing. Prices rose skyward; manufacturers, wholesalers and retailers were forced into a wild scramble for inventories. Prices soared higher and higher. Farm prices skyrocketed 109 per cent between 1914 and 1920. If farmers, merchants, manufacturers can be certain that the costs of things they buy will not skyrocket and threaten a major crash later, they can make long-terplans for large-scaoperations and production and full employment. If workers can be certain of this full employment at adequate wages, then they also can feel secure of the value of their purchasing power . . . will feel free to spend for reconversion goods and this free spending will stimulate more employment. Farm and City Linked. On the other hand, if swiftly rising prices make production costs unpredictable, business will not be able or willing to plan ahead, full production will falter and fear of unemployment would make consumers afraid, to spend. We have often remarked about the analagous relation between the iarmers income and full employment in cities, for it is a fact that when income of workers is high, farm income also is high. When there is heavy unemployment, farm prices toboggan. Price Administrator Bowles has given his word that OPA is going to use every resource at its command to continue an effective job with the ultimate goal of keeping a sound price structure upon which can be built sound prosperity. When danger of inflation is past, then OPA plans to step out of the picture. (The present act ends June 30, 1946.) To do this he plans (1) wherever necessary to continue price controls over goods and services which have been controlled in war time; (2) to set prices on reconversion goods; (3) to work out simple ceiling prices for building materials and as many consumer goods items as possible; (4) to require manufacturers to tag consumer goods with d retail ceiling prices. Continued control over tractors, other farm implements and machinery, fertilizer and seeds so long as they are in short supply is on the program. It may be necessary to increase some prices as compared to prewar, but the plan is to keep all prices as near prewar level as possible. Bowles says that price control alone cannot guarantee prosperity, but he believes that it can help to control inflation by keeping the buying power of each dollar and will enable industry, agriculture and labor, together with government, to work together toward a sound post, war prosperity. m le dollar-and-cen- ts easy-to-rea- Ke-fauv- er CHURCHILL IN DEFEAT Winston Churchill recently told friends how he felt after his defeat in the British elections. The first few days after his defeat were terrible, Churchill confessed. The very next morning he arose and fretted1 because there were no diplomatic cables to read. Through the war, his first morning chore was to read the REGooflridi military and diplomatic WNU W 4645 cables from all over the empire ; and he paced up and down, intermittently for days, fretting because there were no cables coming in and because, though he felt things were going wrong, there was no one to And Your Strength and whom he could send cables to out. Energy Is Below Par straighten things It may be caused by disorder of kidto down went the I south Finally ney function that permits poisonous waste to accumulate. For truly many Churchill confessed. of France, people feel tired, weak and miserable I They treated me well there. when the kidneys fail to remove excess acids and other waste matter from the painted several pictures and they blood. fed me some wonderful food. But Yon may suffer nagging backache rheumatic pains, headaches, dizziness, Btill I couldnt get over this idea of rettipg np nights, leg pains, swelling. no cables coming in and no cables Sometimes frequent ana scanty urination with smarting and burning is anfretted going out. Each morning-other sign that something is wrong with when I read the papers. But finally the kidneys or bladder. There should be no doubt that prompt one morning I felt better. It sudtreatment is wiser than neglect. Use Doan's PiUt. It is better to rely os a denly dawned on me that I wasnt medicine that bat won countrywide apprime minister any more and it proval than on something leaa favorably betfelt and Ive known. Doan't have been tried and testwasnt my worry, ed many years. Are at all drug stores. ter ever since. Get Doan't today. Note Churchills health is touch and go. His doctor has ordered him to cut- down on his food and drinking. top-secr- et - |