stability in prices for almost a year and a half after the outbreak of war abroad. In October 1915, however, prices turned sharply upward. By April 1917 the wholesale price index had jumped 63 percent; by June 1917, 74 percent; and by June 1920 it was nearly 140 percent over the October 1915 mark. The facts today are frighteningly similar.

The Bureau of Labor Statistics Index of 28 basic commodities, by the end of June, had advanced 50 percent beyond its August 1939 level. It has increased 24 percent since January of this year.

Since August 1939 the Bureau of Labor Statistics Index of 900 wholesale prices has advanced 171⁄2 percent. It has increased 10 percent since January of this year. In the past 60 days wholesale prices have risen more than five times as fast as during the preceding period since the outbreak of the war abroad.

Since August 1939 the Bureau of Labor Statistics Index of the cost of living has advanced 5% percent. It has increased 3% percent since the beginning of this year, and the upward pressure is now intense. In a single month, from the middle of May to the middle of June, the cost of living jumped 2 percent. During the last quarter the increase in the cost of living was greater than during any similar period since the World War. But even yet the index does not fully reflect past increases, and only in a few months will it respond to current increases.

In 1915 the upward price movement proceeded unchecked so that when regulation was finally begun it was already too late. Now we have an opportunity to act before disastrous inflation is upon us. The choice is ours to make; but we must act speedily.

For 12 months we have tried to maintain a stable level of prices by enlisting the voluntary cooperation of business and through informal persuasive control. The effort has been widely supported because farsighted business leaders realize that their own true interests would be jeopardized by runaway inflation. But the existing authority over prices is indirect and circumscribed and operates through measures which are not appropriate or applicable in all circumstances. It has further been weakened by those who purport to recognize need for price stabilization yet challenge the existence of any effective power. In some cases, moreover, there has been evasion and bootlegging; in other cases the Office of Price Administration and Civilian Supply has been openly defied.

Faced now with the prospect of inflationary price advances, legislative action can no longer prudently be postponed. Our national safety demands that we take steps at once to extend, clarify, and strengthen the authority of the Government to act in the interest of the general welfare.

Legislation should include authority to establish ceilings for prices and rents, to purchase materials and commodities when necessary, to assure price stability, and to deal more extensively with excesses in the field of installment credit. To be effective, such authority must be flexible and subject to exercise through license or regulations under expeditious and workable administrative procedures. Like other defense legislation, it should expire with the passing of the need, within a limited time after the end of the emergency.

The concept of a price ceiling is already familiar to us as a result of our own World War experience. Prices are not fixed or frozen; an upper limit alone is set. Prices may fluctuate below this limit, but they cannot go above it.

To make ceiling prices effective it will often be necessary, among other things, for the Government to increase the available supply of a commodity by purchases in this country or abroad. In other cases it will be essential to stabilize the market by buying and selling as the exigencies of price may require.

Housing is a commodity of universal use, the supply of which cannot speedily be increased. Despite the steps taken to assure adequate housing for defense, we are already confronted with rent increases ominously reminiscent of those which prevailed during the World War. This is a development that must be arrested before rent profiteering can develop to increase the cost of living and to damage the civilian morale.

Of course there cannot be price stability if labor costs rise abnormally. Labor has far more to gain from price stability than from abnormal wage increases. For these are likely to be illusory, and quickly overtaken by sharp rises in living costs which fall with particular hardship on the least fortunate of our workers and our old people.

There will always be need for wage adjustments from time to time to rectify inequitable situations. But labor as a whole will fare best from a labor

policy which recognizes that wages in the defense industries should not substantially exceed the prevailing wage rates in comparable nondefense industries where fair labor policies have been maintained. Already through the efforts of the National Defense Mediation Board and wage stabilization committees, wage standards are being established and a measure of wage stability is being brought to particular industries. It is expected that such activities will be continued, extended, and made increasingly effective.

I recognize that the obligation not to seek an excessive profit from the defense emergency rests with equal force on labor and on industry, and that both must assume their responsibilities if we are to avoid inflation.

I also recognize that we may expect the wholehearted and voluntary cooperation of labor only when it has been assured a reasonable and stable income in terms of the things money will buy and equal restraint or sacrifice on the part of all others who participate in the defense program. This means not only a reasonable stabilization of prices and the cost of living but the effective taxation of excess profits and purchasing power. In this way alone can the Nation be protected from the evil consequences of a chaotic struggle for gains which must prove either illusory or unjust, and which must lead to the disaster of unchecked inflation.

FRANKLIN D. ROOSEVELT.

THE WHITE HOUSE, July 30, 1941.

[II. R. 5479, 77th Cong., 1st sess.]

A BILL To further the national defense and security by checking speculative and excessive price rises, price dislocations, and inflationary tendencies, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

TITLE I-GENERAL PROVISIONS AND AUTHORITY

PURPOSES; TIME LIMIT

SECTION 1. (a) It is hereby declared that it is in the interest of the national defense and security and the purposes of this Act are (1) to preserve the value of the national currency against the consequences of price and credit inflation; (2) to stabilize prices and to prevent speculative, unwarranted, and abnormal increases in prices and rents; (3) to prevent economic disturbances, labor disputes, burdens upon interstate and foreign commerce, interference with the effective use of the Nation's resources for defense, and impairment of national unity and morale, which would result from unwarranted increases in prices, rents, and the cost of living; (4) to eliminate and prevent profiteering, hoarding, manipulation, speculation, and other disruptive practices resulting from abnormal market conditions or scarcities caused by or contributing to the national emergency; (5) to prevent prospects of price rises from encouraging the accumulation and withholding of materials needed for national defense, and from impeding long-term commitments for production; (6) to assure that defense appropriations are not dissipated by excessive prices; (7) to obtain the maximum necessary production without undue profits to low-cost producers; (8) to protect persons with relatively fixed and limited incomes, investors, and persons dependent on life insurance, annuities, and pensions, from undue impairment of their standard of living; (9) to prevent a post-emergency collapse of values, and the reappearance of price and cost disparities for farmers and other primary producers; and (10) to provide procedures for administration and review which will fairly protect the interests of those subject to this Act, without endangering the dominant public interest in the accomplishment of the foregoing purposes.

(b) The provisions of this Act, and all regulations, orders, and requirements thereunder, shall terminate upon the expiration of one year from the date of a declaration by the President, or the Congress by concurrent resolution, that the further continuance of the authority granted by this Act is not necessary in the interest of the national defense and security; except that as to offenses committed, or rights or liabilities incurred, prior to the expiration of one year from the date of such declaration, the provisions of this Act and such regulations, orders, and requirements, shall be treated as still remaining in force for the purpose of sustaining any proper suit, action, or prosecution with respect to any such right, liability, or offense. During such one-year period the authority

granted by this Act to the President shall be exercised in such manner as to facilitate readjustment to normal conditions.

PRICES, RENTS, AND MARKET PRACTICES

SEC. 2. (a) Whenever in the judgment of the President the price or prices of a commodity or commodities have risen or threaten to rise to an extent or in a manner inconsistent with the purposes of this Act, he shall by regulation or order establish such ceiling or ceilings as in his judgment will be generally fair and equitable to buyers and sellers of such commodity or commodities and will effectuate the purposes of this Act. So far as practicable, in establishing any ceiling for any specified commodity, the President shall ascertain and given due consideration to the prices prevailing for the commodity on or about July 29, 1941, and shall make adjustments for such relevant factors as he may determine and deem to be of general applicability in respect of the commodity, including the following: Speculative fluctuations, general increases or decreases in costs of production and transportation, and general increases or decreases in profits earned by sellers of the commodity, during and subsequent to the year ending July 29, 1941. Every regulation or order establishing any ceiling under this subsection shall be accompanied by a statement of the considerations involved in the issuance of such regulation or order.

(b) Whenever in the judgment of the President such action is necessary or proper in order to effectuate the purposes of this Act, he shall issue a declaration designating defense-rental areas and defense-area housing accommodations, and setting forth the necessity for, and recommendations with reference to, the stabilization or reduction of rents for defense-area housing accommodations within each area so designated. If within sixty days after the issuance of any such recommendations rents for any such accommodations have not in the judgment of the President been stabilized or reduced by State or local regulations, or otherwise, in accordance with the recommendations, the President shall by regulation or order establish such ceiling or ceilings for such accommodations as in his judgment will effectuate the purposes of this Act. designating defense-rental areas or defense-area housing accommodations, in prescribing ceilings for such accommodatons, and in selecting persons to administer such ceilings, the President shall, to such extent as he determines to be practicable, consider any recommendations which may be made by State and local officials concerned with housing or rental conditions in any defense-rental

In

area.

(c) Any ceiling or ceilings may be established in such form and manner, may contain such classification and differentiations, and may provide for such adjustments, as in the judgment of the President are necessary or proper in order to effectuate the purposes of this Act. The President may establish a ceiling or ceilings below the general market prices for the commodity or commodities, or below the rent or rents, as the case may be, in effect at the time of the establishment of such ceiling or ceilings.

(d) Whenever in the judgment of the President such action is necessary or proper in order to effectuate the purposes of this Act, he may, by regulation or order, regulate or prohibit, with respect to any commodity, speculative or manipulative practices, selling, marketing, or inventory practices (including practices relating to changes in form or quality), hoarding, or other practices, which in his judgment are equivalent to or are likely to result in price increases inconsistent with the purposes of this Act.

(e) Whenever in the judgment of the President such action is necessary or proper in order to effectuate the purposes of this Act, he may, on behalf of the United States, without regard to any provision of law requiring competitive bidding, buy, store, or use, or sell at public or private sale, any commodity, upon such terms as he shall deem necessary to obtain the maximum necessary production of marginal or high-cost producers, or to prevent price increases inconsistent with the purposes of this Act. The proceeds of any sale under this subsection shall be used as a revolving fund for carrying out the provisions of this subsection.

(f) No power conferred by this section shall be construed to authorize any action contrary to the provisions and purposes of section 3.

AGRICULTURAL COMMODITIES

SEC. 3. (a) No ceiling shall be established for any agricultural commodity below (1) 110 per centum of the parity price or comparable price for such commodity, as determined and published by the Secretary of Agriculture, or (2) the market price prevailing for such commodity on July 29, 1941.

64300-41-pt. 1—2

(b) For the purposes of this Act, parity prices for agricultural commodities shall be determined and published by the Secretary of Agriculture as authorized by law.

(c) The provisions of Section 2 of this Act shall not be construed to authorize any action contrary to the provision and purposes of this section.

PROHIBITIONS

SEC. 4. (a) It shall be unlawful, regardless of any agreement, lease, or other obligation heretofore or hereafter entered into, for any person to sell or deliver any commodity, to demand or receive any rent, or otherwise to do or omit to do any act, in violation of any regulation, order, or other requirement, under this Act, or to offer or agree to do any of the foregoing: Provided, That nothing in this Act shall be construed to require any person to sell any commodity or to offer any accommodations for rent.

(b) It shall be unlawful for any officer or employee of the Government to disclose, otherwise than in the course of official duty, any information obtained under this Act, or to use any such information for personal benefit.

TITLE II-ADMINISTRATION AND ENFORCEMENT

ADMINISTRATION: PERSONNEL

SEC. 201. (a) The President may, from time to time, issue such regulations and orders as he may deem necessary or proper in order to carry out the purposes and provisions of this Act, and to prevent the circumvention or evasion thereof.

(b) Wherever reference is made in this Act to the President, such reference shall include, in addition to the President, any department, agency, officer, or employee, designated or appointed by the President for the execution of any power, authority, or discretion vested in the President by this Act. Industrial, price, and other experts appointed under this Act may be appointed without regard to the civil-service laws.

OBTAINING INFORMATION

SEC. 202. (a) The President may make such studies and investigations, and obtain or require the furnishing of such information under oath or affirmation or otherwise, as he deems necessary or proper to assist him in prescibing any regulation or order under this Act, and in the administration and enforcement of this Act, and regulations and orders thereunder. For such purposes the President may administer oaths and affirmations, may require by subpena or otherwise the attendance and testimony of witnesses and the production of documents at any designated place, may require persons to permit the inspection and copying of documents, and the inspection of inventories, and may, by regulation or order, require the making and keeping of records and other documents and the making of reports. No person shall be excused from complying with any requirement under this section because of his privilege against self-incrimination, but the immunity provisions of the Compulsory Testimony Act of February 11, 1893 (U. S. C., 1934 edition, title 49, sec. 46), shall apply with respect to any individual who specifically claims such privilege.

(b) The President shall not publish or disclose any information obtained under this Act that he deems confidential unless he determines that the withholding thereof is contrary to the interest of the national defense and security.

PROCEDURE

SEC. 203. (a) Regulations or orders establishing any ceiling or ceilings may be issued after such inquiry as the President deems necessary or proper. Within a period of sixty days after the issuance of any such regulation or order any person subject to the provisions thereof may, in accordance with regulations to be prescribed by the President, file a protest specifically setting forth objections to such regulation or order and affidavits or other written evidence in support of such objections. At any time after the expiration of such sixty days any person subject to the provisions of such regulation or order may file such a protest based solely on grounds arising after the expiration of such sixty days. Statements in support of any such regulation or order may be received and incorporated in the transcript of the proceedings at such times and in accordance with such regulations as may be prescribed by the President. Within a reasonable time after the filing of any protest under this subsection, but in no event more than thirty days after such filing or ninety days after the issuance of the

regulation or order in respect of which the protest is filed, whichever occurs later, the President shall either grant or deny such protest in whole or in part, notice such protest for hearing, or provide an opportunity to present further evidence in connection therewith.

(b) In any proceedings under this Act the President may take official notice of economic and other facts, including facts found by him as a result of action taken under section 202, and may limit such proceedings to the filing of affidavits or other written evidence, or the filing of briefs.

REVIEW

SEC. 204. (a) Any protestant who is aggrieved by the denial or partial denial of his protest, may, within thirty days after such denial, file a complaint with the emergency court of appeals, created pursuant to subsection (c), praying that the regulation or order protested be set aside in whole or in part. A copy of such complaint shall forthwith be served on the President who shall certify and file with such court a transcript of the proceedings in connection with the protest which shall include a statement of the materials of which the President has taken official notice. Upon the filing of such transcript the court shall have exclusive jurisdiction to affirm or set aside such regulation or order, in whole or in part, or to remand the proceeding: Provided, That the regulation or order may be modified or rescinded by the President at any time notwithstanding the pendency of such complaint. No objection to any regulation or order, and no evidence in support of any objection thereto, shall be considered by the court, unless such objection shall have been set forth by complainant in the protest or such evidence shall be contained in the transcript. If application is made to the court by either party for leave to introduce additional evidence which was either offered to the President and not admitted, or which could not reasonably have been offered to the President, and the court determines that such evidence is material, the court shall order the evidence to be presented to the President. The President shall promptly receive the same, and such other evidence as he deems necessary or proper, and thereupon he shall certify and file with the court a transcript thereof, and any modification made in the regulation or order as a result thereof, except that on request by the President, any such additional evidence may be presented directly to the court.

(b) No such regulation or order shall be set aside, in whole or in part, unless the complainant establishes to the satisfaction of the court that the regulation or order is not in accordance with law, or is arbitrary or capricious. The effectiveness of a judgment of the court setting aside in whole or in part any such regulation or order shall be postponed until the expiration of thirty days from the entry thereof, except that if a petition for a writ of certiorari is filed with the Supreme Court under subsection (d) within such thirty days, the effectiveness of such judgment shall be postponed until an order of the Supreme Court denying such petition becomes final, or until other final disposition of the case by the Supreme Court.

(c) There is hereby created a court of the United States to be known as the Emergency Court of Appeals, which shall consist of three or more judges to be designated by the Chief Justice of the United States from judges of United States district courts and courts of appeals. The Chief Justice of the United States shall designate one of such judges as chief judge of the Emergency Court of Appeals, and may, from time to time, designate additional judges for such court and revoke previous designations. The chief judge may, from time to time, divide the court into divisions of three or more members, and any such division may render judgment as the judgment of the court. The court shall have the powers of a district court with respect to the jurisdiction conferred on it by this Act, except that it shall exercise its powers and prescribe rules governing its procedure in such manner as to expedite the determination of cases of which it has jurisdiction under this Act. The court shall have a seal, hold sessions at such places as it may specify, and appoint a clerk and such other employees as it deems necessary or proper.

(d) Within thirty days after entry of a judgment, interlocutory or final, by the Emergency Court of Appeals, including a judgment under section 205 (c) (2) a petition for a writ of certiorari may be filed in the Supreme Court of the United States, and thereupon the judgment shall be subject to review by the Supreme Court in the same manner as a judgment of a circuit court of appeals as provided in section 240 of the Judicial Code, as amended (U. S. C., 1934 edition, title 28, sec. 347). The Supreme Court shall expedite the disposition of all causes filed therein pursuant to this subsection. The Emergency Court of Appeals, and the Supreme Court upon review of judgments of the Emergency Court of Appeals,