The subject allotted to me was “Retail Business Under the Price Ceiling,” which I propose to deal with under three general headings: (1) some of the immediate problems that arose; (2) the effects of this legislation to date; (3) some problems we see ahead.

Let us keep in mind that price ceiling legislation is only one of several methods that the government is using to avoid inflation, and that all are interdependent to some degree. Constantly increasing taxation in all its forms, and borrowing, in war savings stamps, certificates, and bonds, is siphoning off some of the excess spending power. Industrial rationing and priorities have been in effect for some time. Subsidies to agriculture, importers, and primary producers are now being paid. But there are already grave doubts if even all of these controls are enough. Forced savings, direct rationing to consumers, and many other controls may be just around the corner.

It is well to remember, too, that price ceiling legislation is even now less than six months old. It is still in the heat of a distilling process. The outbreak of war in the East and the tremendous loss of supply occasioned thereby was, and still is, a severe jolt. That it has withstood this shock so well up to date is at least encouraging. That the United States has adopted the Canadian plan with very few changes is evidence that they consider our controls effective so far and had no better ideas to offer. It seems reasonable to expect that both countries working on the same plan will relieve some of our difficulties, and our services as the guinea pig of experimentation should be of some assistance to them. In any comparisons, however, that may be made between the two countries, it must be remembered that the United States's spiral of prices was much more rapid than ours and continued for a longer period. Their ceiling prices are, therefore, on a generally higher level in most commodities.