U.S.A. PAY & PRICES

Grey River Argus, 16 February 1946, Page 5

U.S.A. PAY & PRICES

TRUMAN’S NEW ORDERS

Some Increases Allowed TO HOLD INFLATION (Rec. 9.3O)WAHINGTON, Feb. 14 President Truman announced that the Office of Price Administration, Administrator Chester Bowles, has been appointed Economic Stabilisation Administrator, with a broadened field of authority, and the Federal Communications Commissioner, Paul Porter has been appointed’ O.P.A. Administrator.

Mr. Truman said he intended modifying the United States wage and price policy, to permit of wage increases within certain limits, and to permit any industry placed in a position of hardship by an approved increase to seek price adjustments without waiting until the end of the six month test period, as previously required’.

Explaining this modified wage and price policy, Mr. Truman emphasised that if the general level is to remain stable in the next few critical months then immediate price relief must, be conservatively appraised. However, the relief must be sufficient to assure profitable operations in the test period of six months to the high production industries. Taking a recognition of the general pattern of wage increases since V.J. Day, the President authorised the National Wage Stabilisation Board to approve of any wage increases consistent with such a pattern—generally between 15 and 2u per cent. Mr. Truman added that where there have not been general patern increases, his order authorised increases, to eliminate gross inequities between related industries; or to correct the sub-standards of living; or to compensate for increased living costs, between January, 1941, and September 1945. However, he warned that his order should not be interpreted as permitting indiscriminate wage increases. He said: “Increases outside of this general policy cannot be approved without subjecting the workers and the public to the danger of inflation. It is to the best, advantage of the American worker, above all other groups, that the price line should be hold. The change now made in the wage and price standards can succeed only with the support of the people, Congress, labour, business and all the

agencies of this administration.” The President promised ' mat priorities and allocations of power would be used vigorously to prevent increased prices, and the resources of the Treasury and Justice Departments would be used to enforce price controls.

He called on Congress speedily to extend a subsidy programme for the year; to enact the Patman Bill for controlling housing prices; and extend the Second War Powers Act. He pointed out that only through such measures could the country hope to retain controls over its economic future.

Appealing for public support of the economic stabilisation programme, Mr Truman called on Labour and Management to speed full production —the basis of high wages, profits, and high standards of living. He said: “I am determined my country shall avoid the misery and disaster of inflation, and that our vast resources and purchasing power shall be the stepping stone to a fuller life, rather than be permitted to spend themselves on a brief orgy of inflation and disaster. I call on the American people to close their ranks in the face of that common enemy which, after the last war, turned a military victory into an economic defeat. I.call on every citizen to join in a united effort \o consolidate the military victories by winning a final victory over inflation.”

(Rec. 11.5). NEW YORK, Feb. 15. A “New York Times” Washington correspondent says: The chief importance of President Truman’s announcement is that it clears the way for an increase of live' dollars per ton in steel prices. This is expected to lead to the early end of the monthold steel strike, since the steel operators have been calling for an increase in steel prices after agreeing to a rise in wages. WASHINGTON, February 14. The Senate Labour Committee has approved a measure increasing the minimum wage from 40 to 65 cents, per hour, and has extended the coverage to include retail and wholesale businesses, departmental stores and chain stores. The only exemptions will be the small corner grocery and other little businesses.

The chairman, Mr Murray, said that 21,000,000 workers were covered by the Labour Standards A.ct, but most employees were now receiving more than 65 cents.