Pacific Price Index

First Japanese civilian communities occupied by U.S. troops in World War II were the Marianas Islands of Saipan and Tinian, last June. There, as everywhere, warfare brought normal economic processes to a shocked and paralyzed stop. But U.S. soldiers build even better than they tear down. By last week the occupied Marianas again had a healthy civilian economy operating, complete with a local variety of OPA price control.

Civil affairs administrators at first had found it impossible to pay any wages at all to native laborers. With no goods available, any money in native hands became mischief money, that was traded to soldiers for Government equipment. To prevent this, all wages were withheld for two months, until trade goods could be shipped in.

Now wages on Saipan and Tinian have been fixed at a standard level of 35 to 50-c- a day, plus food, clothing, shelter. That is enough for the Jap, Korean and Chamorro laborers to buy U.S. cigarets (at 7-c- a pack),* cloth, soap, toilet paper, shampoo, dark glasses, and occasional candy bars--all covered by rigid price ceilings.

Ceilings have also been established for services. Barbershops prominently post their rates (shave and haircut: 5-c-) under signs, in English and native languages, warning customers not to pay more. Seamstress shops qualify their prices (trousers or dresses: 30-c-) with notices that "no additional charge will be made for materials." Under such rules, business is brisk. The trade shop at Tinian's Churo Camp (pop. 11,142) grosses close to $1,000 a day.

Experience gained in the Marianas may well set the pattern for administration of Jap territory occupied in the future. The civil affairs section in Tinian is already planning the next step: private business operated by native businessmen.

* For other news of U.S. cigarets, see U.S. AT WAR.

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