In the battle against inflation, Franklin Roosevelt had talked a tough war and fought a weak one. By last week the enemy could no longer be stalled off with words. The President had to make his stand and fight—or retreat in disorder.
He chose to stand, and dug in. At week's end, he was holding firmly.
Only Way. The President issued a new order on price control. He explained:
"To hold the line we cannot tolerate further increases in prices affecting the cost of living or further increases in general wage or salary rates except where clearly necessary to correct substandard living conditions.
"No one straw may break a camel's back, but there is always a last straw. We cannot afford to take further chances in relaxing the line. We already have taken too many. . . .
"Some groups have been urging increased prices for farmers on the ground that wage earners have unduly profited. Other groups have been urging increased wages on the ground that farmers have unduly profited. Any continuance of this conflict will not only cause inflation, but will breed disunity at a time when unity is essential. . . .
"I am exerting every power I possess to preserve our stabilization program.
"I am sure the Congress will cooperate."
Battle Plan. With these words, Franklin Roosevelt conceded something every citizen had learned in the market place: for all its strong talk, the Administration had retreated and retreated again. In his executive order, he outlined a braver battle plan:
> The Administration will put dollars-&-cents price ceilings on the foodstuffs and goods that make up the average citizen's cost of living. Prices already out of line will be pushed back, if possible, to last September's levels. Only foods not yet at parity will be free to rise.
> Wage and salary increases will be limited to the terms of the Little Steel formula, which allows a 15% rise since the beginning of 1941. No other raises will be permitted except to "correct substandards of living" or to accompany legitimate promotions.
> As a check on pay rates, the War Manpower Commission was authorized to stop citizens from moving to higher-paid jobs, unless the change in employment would aid in the war.
Implementation. There was nothing startlingly new in this strategy. Franklin Roosevelt had laid down much the same plans before. Cynics noted the similarity of his three important pronouncements last year: his "seven-point program" of April, his Labor Day message to Congress, his "general stabilization order" last October.
But the important thing was that this time the Administration seemed to mean it. The President turned over ample price-control powers to Economic Czar James F. Byrnes. Within two days, action began all along the front:
> The War Labor Board instructed all its regional offices to make no exceptions to the Little Steel formula. The formula had been under attack by the A. F. of L., C.I.O. and John L. Lewis.
> Price Boss Prentiss Brown drew up ceilings for wheat, cotton, fresh fruit, seeds from which oil is pressed.