-4- 



of thousands of articles at their highest price for the month of March, 



19^2. This is an essential step for the prevention of inflation. In 



Illinois we have Just completed a three-d:.y campaign to obtain pledges 



for the purchase of war savings "bonds and stamps. All of us x\^ho pledged 



being 

 to buy these Government securities are happy to know that steps are/taken 



to make the interest and principal from these bonds vjorth essentially as 



much in terms of commodities upon redemption of the bonds as they are at 



the time of purchase. If prices were permitted to rise, we should be 



buying the bonds with dollars of one purchasing power and getting them 



redeemed in dollars that had less purchasings oower. 



The regulation of the cost of living also removes the argument 

 that wages m^ust be raised because the cost of living has risen. Of 

 course, if v;ages are raised, national income ^;0£S up, the pressure upon 

 prices becomes greater, the cost of articles produced with a higher vjr,ge 

 increases and we have an upv/ard spiral in prices and wares that is hard 

 to stop. V7ith limitations uoon the prices of things consumers buy, 

 there is also an opportunity for them to save more money which can be 

 loaned to the government. In addition the prices of commodities that 

 the government is obliged to buy for war processes and lend-lease 

 activities are held down. 



Price ceilings alone are not enough if cominodities become scarce. 

 It will be necessary then to ration goods in order that no partiality 

 may be shown in the distribution of goods. It is very likely that we 

 shall have a great deal more rationing than we have had up to date. 

 Nevertheless it is anticipated that the American people will accept 

 rationing and any other limitations upon their customary pleasures net 

 only with good grace but with satisfaction. V7e shall be glad to know 

 that steps are being taken to make sure that our war effort will not be 

 Impeded. We shall probably come to apprecia'ce and enjoy the simpler life 



