PRICE CONTROL.

Auckland Star, Volume LXXII, Issue 86, 12 April 1941, Page 8

PRICE CONTROL.

MR. ROOSEVELT ACTS.

New Organisation Set Up With

Wide Powers.

United Press Association.—Copyright. (Rec. 11 a.m.) WASHINGTON*, April 11

President Roosevelt tp-day signed an executive order creating an "Office of Price AtlmWsti-ation and Civilian Supply" to control prices. Mr. Leon Henderson, price stabiliser, will head the new organisation, which has been created to avoid inflation and facilitate the adequate supply and equitable distribution of materials and commodities.

Mr. Roosevelt said the administrator would be directed to take all lawful steps to prevent price spiraling, rising living costs, profiteering and inflation induced by the diversion of large segments of the nation's resources to the defence programme. The speculative accumulation, withholding and hoarding of materials and commodities would l>e prohibited.

Mr. Roosevelt also said that the new Department would emphasise the protection of the consumer, and it would be under the aegis of the Office of Emergency Management.

Asked whether Mr. Henderson would have authority to enforce price or priority orders, Mr. Roosevelt said: "Yes, far as the law goes."

The Department would control the supply .and distribution of materials and commodities for civilian use, but without conflicting with defencc requirements and after satisfying defence needs.

Mr. Henderson eomplaincd to-day that dealers in cadmium (a chemical element belonging to the same group as zinc) profiteered ruthlessly, and threatened drastic action if prices did not return to a reasonable level without delav.

The "Journal of Commerce" states that the Government plans to cope with the inflation threat by a four-point programme: (1) Higher taxes both by individuals and corporations. (2) The Treasury will concentrate upon sales of Government securities rather than banks and loading institutions, thus drawing 011 public savings .for financing defence. (3) Combatting price rises by extending the strengthening of the price stabiliser's powers to fix and enforce prices. (4) Curbing the enormous growth of the hire purchase by restrictive regulation instalment buying.