Extension fo Army Service Assured

Manawatu Times, Volume 66, Issue 186, 7 August 1941, Page 7

Extension fo Army Service Assured

US. SENATE VOTE WASHINGTON, Aug. 5. The Senate to-day rejected by 50 *otes to 27 Senator Taft's proposal to limit the extension of army service to ■ix months beyond the original year. It is now believed that an 18-months extnesion will be adopted. Senator Wheeler, the isolationist leader, has been appointed to a subcommittee to the Senate Ilntcr-State Commerce Committee to consider the XequC'St of Senators Nye and Clark for •n investigation of war propaganda by Jnotion pictures and the radio. The Price Administrator, Mr. HenBerson, testifying before the Banking Committee of the House of Representatives, said that increases in wages and employment had brought American purchasing power to a new high record. The nation faced a very strong and tnost pronounced increase in the cost of living. Even if the Administration’s I‘rb'e Control Bill became law immediately, the Government would have an enormous job in controlling prices tfcich were already spiralling and in

striving to stublisc tiio country’s I dynamic and volatile economy. | The nation’s prico structure, said Mr. Henderson, was already knocking at the door of- the 1929 levels and was heading twoaids the 1919 peaks. Without artificial control, inflation would be inevitable. Payrolls were 152 per cent, of normal, and, while buying power was increasing, the production of civilian commodities was being reduced. This was resulting in competition for goods, which had raised the general price level 20 per cent, sinco the outbreak of war.