NEEDED AT ONCE

Wairarapa Times-Age, 17 September 1942, Page 4

NEEDED AT ONCE

ACTION AGAINST INFLATION IN UNITED STATES MR HENDERSON'S TESTIMONY. WAR PROGRAMME JEOPARDISED. (By Telegraph—Press Association—Copyright) WASHINGTON, September 15. The Price Administrator. Mr Henderson, testifying before the Banking Committee of the Senate on the Bill designed to stabilise _ wages, salaries and farm prices, said that such a measure was immediately necessary to avert inflation. “The danger of extremely inflationary increases in the cost of living is at hand, and it is jeopardising the entire war _ programme,” he said. “Uncontrolled items are forcing the whole cost of living upward. If farm prices rose ts the levels at present permitted, approximately 2036 million dollars would be added to the prices of farm products marketed in 1942. Wage increases are also threatening price ceilings.” Mr Henderson instanced that butter rose eight per cent in July and eggs increased 12 per cent. Rival measures have been submitted to Congress. The Senate Bill calls for stabilisation of farm prices and industrial wages at about present levels, with Presidential authority to adjust both upward and downward to eliminate gross inequities. The other measure, submitted to the House, is viewed widely as being inflationary in itself. It would peg farm prices at 100 per cent of a new and higher parity.