Prices: Storm Warning?

Last week was only Leon Henderson's fourth as head of OPACS. Yet prices, Leon's prime concern, rose more ominously than in any other week in months. Signs:

> Imported commodities like rubber and tin rose because ships are scarce. Rubber reached a new high of 24 1/2-c- a pound, nearly 30% over this year's low and almost 5-c- above the limit at which RFC can buy for stockpile. Straits tin sold at 52 1/4 a pound, up 1/2-c- in a week. Tin prices are below the 1941 top, but they are still so high the Metals Reserve Co. has not bought a pound in three months.

> Agricultural commodities rose because of the Fulmer bill, which aims to carve out a bigger piece of the national income for farmers by increasing crop loans. Cotton rose $3 a bale to four-year highs; wheat rose 3-c- a bushel. Buyers scrambled for fats and oils. At 36#&162; a pound, butter was 20% over the January low. Lard fetched $9.72 1/2 per 100 pounds, almost double the 1941 low.

This week Secretary of Agriculture Claude Wickard, instead of attacking the Fulmer bill, deplored "speculation" and announced plans were being made to tighten Government control of the commodity markets. Cotton and wheat prices promptly lost part of their gains.

> Consumer goods rose because of general prosperity and the fear of shortages. Average used-car prices, according to Automotive News, have soared by $50 in six months, are now $486 for 1937-40 sedans (all makes). The National Industrial Conference Board's cost-of-living index for April reached 86.9 (1923 = 100), highest in three years.

All this meant that Henderson's price-controlling job was tough and getting tougher. Rising crop prices mean more money for farmers. On the industrial front many factory workers have had their pay upped 5% to 20% since New Year's. When this Niagara of dollars starts gushing from farmer-labor pockets, many a price cap is likely to blow off.

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