Show x ir ihrk rK t iiii inflation threat will bacorn e a dread reali T y if everyone scrambles for excessive profits and only controls of OPA pe prevented vented runway runaway prices during war fly by WALTER A SHEAD staff correspondent during the war years if we beme peeved with rationing and ilce rice control it was the national hab ft to cuss OPA during recon jerit people from the captains of industry du stry on 00 down wn the line and into the ranks 01 of congress blame many u OPA PA of our ills on there have been ridiculous and funny jol jokes es cracked about the OPA and the controls instituted for the protection of the american people ale and as is the case in any hu an ao institution the OPA has made mistakes errors of judgment congress has been deluged deluge d with letters from constituents busi business ess men a and nd consumers concer concerning ing real or fancied ills and disca discriminations im na tic wh which ich were laid at the door doo 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 en li minate 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 beef ings their sound com mon men sense prevailed and 75 out of every people favor continuing price controls for at least some months to come only in in recent weeks various groups in trade and industry have bee teen 11 increasing pressure in calling S lor for an end of price controls barly in a the building and housing ini justry preferring to let prices find I 1 their own level As a matter of fact and record had it not been for the OPA and the policies of rationing and price contal the american people would never have been in the favorable position they are in today to face whatever may come in these months of growing pains for price controls have held the line against inflation and rationing controls have seen this country the best led 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 engaged has been 1918 1919 1920 1921 aa c fatta EARNINGS CUT IN HALF W 4 LAND during world war I 1 prices rose swiftly after the armistice on november 11 1918 there was a sudden the dip lasting only three months then level upsweep was resumed soaring until midyear of 1920 the price more than doubled between 1917 and 1920 when prices broke in the later months of 1920 a toboggan slide millions began that brought ruin to 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 1 was talking to a pennsylvania dairy farmer in washington recently he lives in the potato country of pennsylvania and when I 1 asked him how his potato crop was he said well I 1 plant any I 1 figured my business is dairying and I 1 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 f ind find is that it is a situation which creates an unfair change in the purchasing power of money y for instance a farmer who borrowed some money in 1913 could have taken 5 of that borrowed money and bought 40 pounds of meat pounds of flour 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 HOLDING THE PRICE LINE 8 HW 0 ON THE THINGS YOU BUY jf 0 19 stable le prices for farm products are best for the farmer any ter tem profits he might make through rising prices would be ea eaten ten up by 1 increasing cost of manufactured things that he has to buy accompanied ompa nied or followed by a ma lt inflation followed by deflation of equal wal proportions rise held to 29 per cent and an lor for the first time in our nan s history thanks thanks to OPA the Is OI of living during and immedi abely sy following th this is war has been eld d fairly steady from the out a k of the war to the end of 1944 9 costs as measured by the bui all of 01 labor bor statistics rose less ei 29 per cent and most of that came before may 1943 when 00 aj eth were ere inserted into the price B meation mza tion program by compari living costs rose more than 84 r cent in 18 a like period after the habre eak ot of the first world war me ell ce there e was no 0 o rationing or control labor unions declare t rise in cie 6 the cost of living has in more than 29 cent hacen per A aching a 40 per t cent t figure but ach SO 1 ll if that t is s true it does not living ving the dazzling ling heights to which costs ts went att after farin fa the last war 0 of o th air ers becaas e ot of the nature ita business ta suffer more lore n nan any dmn lio 11 arid ther other gro up from inna 1101 ilah I 1 n the e crash cash which ginev fact act ait it follows As a matter of makes 1811 little lith difference tha t att 10 ng ag e ce level may be so as it remais remains stable anda to aliu 1 ming to the that the incomes dounn various s occupational are fair and 1 iacre ton equitable r mote 0 specialized and the I 1 tm I 1 8 the busl toe the more desirable it Is 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 ing power vt I 1 million farms L lost ost inflation during and follo following wing the last war lost to the farmers of this country approximately a million and a half farms why because prosperous farmers d during ur ing the war invested their th air money in land at inflated prices price s they went into debt for machinery machiner for homes barns and other commodities at inflated prices then the purchasing power 0 of the d ollar dollar changed and the deflation V which followed the inflated values brought about the inevitable crash chester bowles the boss ot of the man lie he was OPA is a business the head of a large advertising agency conta contact ct with in daily which was W as business I 1 so lie he knows ws big business big practices and he has become which the pressure i rock 11 upon pon the dashing themselves ives in art an groups are break price control effort to bowles has taken his chester inflation and for stand against price his office is cont control rolf because price every of letters flooded with W ith hundreds with to the fear testifying week high or inflation which people view letters come and these prices little people alike from big land and workers h housewives ouse wives farmers farmer s from business men n rien one consumers small they wan want t 1 theme predominates 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 program labor organizations too 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 and a nd workers returned to their jobs in peacetime plants the do 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 sky rocketed 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 term plans for large scale operations 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 goods and this free spending will W ill stimulate more employment farm and city linked 0 on n the other hand if swiftly ris rising prices make production costs unpredictable business will not be able or w willing to plan ahead full production will falter and fear of unemployment would make consumers afraid i to spend we have often remarked about the analogous relation ti n between the farmers income and full employment in cities for f or it is a fact act f that when income of workers is ji high farm income also is high when there is heavy unemployment ent farm prices toboggan price administrator bowles has given his word that OPA is going to use every rl 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 th e present act ends june 30 1946 to do this he plans 1 wherever necessary sara y to continue price controls over goods and services which have been controlled in war time 2 to set prices on goods 3 to work out simple dollar and an cents ceiling prices for building materials and as many consumer cc isumer goods items as possible 4 to require manufacturers mar lucac to tag consumer goods wit with h easy to read retail ceiling prices pric es i continued control over tractors other farm implements and machinery achin fertilizer and seeds so long as they are in short hort s supply is on the program it may be necessary ne to tb increase some price prices S as compared to prewar but the plan is to keep all prices as near prewar level as possible pos sible bowles says th that at price control alone cannot guar guarantee antee prosperity but he be believes that it can help to control inflation by keeping the buying power ol of each dollar and will 1 agriculture an and d labor industry eni enable able to together with government work together toward tow ard a sound postwar prosperity |