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April 23, 1942 - Image 4

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Publication:
The Michigan Daily, 1942-04-23

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-VAGI, -1"O-1-[R

THE MICHIGAN DAILY

. _. _ . _,
__ _
..

I e , ir1 i trt tl

Basis For Inflation Danger Facing
United States Analyzed By OPA

Edited and managed by students of the University of
Michigan under the authority of the Board in Control
of Student Publications.
Published every morning except Monday during the
University year and Summer Session.
Member of the Associated Press
The Associated Press is exclusively entitled to the
use for republication of all news dispatches credited to
it or not otherwise credited in this newspaper. All rights
of republication of all other matters herein also
reserved.
Etered at the Post Office at Ann Arbor, Michigan, as
second class mail matter.
Subscriptions during the regular school year by car-
rier $4.00, by mail $5.00.
REPRESENTED POR NATIONAL ADVERTIJING 9t
National Advertising Service, Inc.
, College Publishers Representative
420 MADISON AvE. NEW YORK. N. Y.
CHICAGO * BOSTON . LOS ANGELES .SAN FRANCISCO
Member, Associated Collegiate Press, 1941-42

Editorial Staff

Emile Gelb . .
Alvin Dann
David Lachenbrucla
Jay McCormick
Gerald E. Burns
Ral Wilson
Janet Hooker. .
Grace Miller
Virginia Mitchell .
Daniel H. Huytt,
James B. Collins
Louise Carpenter
Evelyn Wright .

. . . . Managing Editor
. . . . Editorial Director
. . . . . City Editor
. Associate Editor
* . . .Associate Editor
. . . . Sports Editor
. . . . Women's Editor
. . Assistant Women's Editor
. . . . Exchange Editor

Business Staff
* . . Business Manager
Associate Business Manager
. Women's Advertising Manager
. Women's Business Manager

NIGHT EDITOR: DAN BEHRMAN
The editorials published in The Michigan
Daily are written by members of The Daily
staff and represent the views of the writers
only.
Wartine Living Coss
Threaten Students .
AS defense workers keep pouring into
Ann Arbor every day to occupy jobs
here and at the Willow Run bomber plant, a
serious threat keeps arising against Unversity
students and possibly even faculty members . .
*a threat of rising living costs and crowded
living quarters.
The bomber factory at Willow Run is near
completion and both skilled and unskilled work-I
ers are coming from all sections of the state and
country to seek employment in the large indus-
try. Since Ypsilanti cannot accommodate-the
vast influx of workers and their families, many
of them are webbing around to surrounding
towns and villages seeking housing facilities.
Ann Arbor is one of the favorite stopping off
places of these workers, being only about twelve
miles away from the bomber plant.
In Washington, National Housing Adminis-
trator John B. Bradford, Jr., is trying to get
Ann Arbor and other localities near Willow Run
classified as defense areas so that they will re-
ceive priorities on building materials. Likewise,
Earl H. Cress, chairman of the Ann Arbor Hous-
ing Commission is working to get this city
classified as a defense area. He claims that not
only Willow Run workers are crowding the city
but also that "the city's industries have been
expanding to take care of war work and have
thus brought many more people into town.
They need housing facilities too."
THOUGH it is not very conspicuous now, the
arrival of defense workers and their families
in this city and the increased demand for hous-
ing accommodations will eventually lead to a
sharp rise in living costs.
For example, if the demand of workers for
living quarters becomes so great that they are
willing to outbid the students for rooms, many
student rooming houses will be converted into
family apartments and many rents for single
rooms will be increased.
Certainly, with the increased population, in-
comes and demands will increase and conse-
quently prices of food both in groceries and in
restaurants will increase. The prices of theatres,
taverns and other places of entertainment will
show a rise, just as will the costs of clothing and
other commodities.
STUDENTS will especially suffer from these
rising ,costs since most of their incomes are
fixed and remain as they were before this war
production prosperity. Many of the faculty
members may also suffer from fixed incomes.
Both these groups have to compete with the de-
fense worker whose income is elastic and whose
wages tend to counterbalance rising living costs.
Some students may be forced to leave school
because of these rising costs and many may
discontinue their education, at least tempor-
arily, to pursue defense occupations,
It goes without saying that President Roose-
velt's anti-inflation proposals and profit and
price ceilings wil curb living costs to some ex-
tent but nevertheless that students will suffer
higher prices scems inevitable.
Mark Lip per

(Editor's Note: Since the urgent national problem
of inflation has, been treated in superficial and
erroneous fashion by many publicists, The Daily is
publishing a release by the' Office of Price Admin-
istration which makes clear the basis for the Ad-
ministration's concern over this economic perl,)
THE following question and answer series was
issued by OPA.
Q. What is inflation?
A. Inflation is a sharp, large increase in
money and credit available for spending with-
out a proportionate rise in supplies of goods
available for purchase. This results in higher
prices.
Q. Do we face a danger of inflation today?
A. Yes. In fact, we are in the early stages of
a serious inflationary spiral.
Q. What causes this danger?
A. American labor, management and capital
are being paid more money this year than ever
before. At the same time, the production of
consumer goods is being drastically cut. If this
unbalance continues, even after taxes are paid
and savings deducted, there will be only $3 worth
of goods for every $4 that people have to spend.
That extra dollar will be thrown on the market
as bidding power for scarce goods, forcing prices
upward.
Q. If Americans have $4 to spend for every $3
in goods, won't prices stop when they have gone
up 33 percent?
A. No. Consider a man with $40 to spend for
$30 worth of goods. If he sees an article he
wants very much, even though it was priced at
10 cents in 1941, he may be willing to bid all of
his surplus for the article. When plates of hama
and eggs sold for $20 in gold rush days, it wasn't
because there was $20 in gold for every 50 cents
worth of goods. It was simply that there were
more miners who wanted ham and eggs than
there were plates of ham and eggs each day,
and so some were willing to pay exorbitant prices
for the privilege of eating this scarce food.
Q. Is inflation caused only by the dispropor-
tion between the amount of money people
have to spend and the "normal" value of con-
sumer goods available.
A. No, There are other reasons. Higher prices
seem to make even higher prices. The gold-
rush restaurant owner who could get $20 for a
plate of ham and eggs would be willing to spend
$500 for a fur coat worth $75 in some other
town. Also, in time of war even the best-
informed people are subject to fears and alarms,
which produce price rises. Take a recent ex-
ample-false rumors of a soap shortage caused
people to buy more soap than they need, making
some prices go up, even though we have a sur-
plus of soap.
Q. Have there been any danger signs of in-
flation?
A Yes. The cost of living in January, 1942,
was 13 percent higher than in September, 1939,
at the outbreak of the war.
Q. What has been done to cheek inflation?
A. Higher taxes, sales of defense bonds, and
a certain amount of price fixing have put a
small brake on inflation. Money that the Gov-!
ernment takes in taxes or receives in return for
bonds can't be used by consumers to bid up
prices. And you'll notice that even the smallest
bonds are now registered so they can't be used
as money. Liberty bonds were used that way
after the last war. Also, your Government has
fixed the prices on more than 100 commodities
and groups of products. They will not skyrocket
in price-but thousands of other goods and
services are not under control.
Q. If stronger brakes are not applied, what
will happen?
A. Based on past experience, prices go up
first,'followed somewhat later by wages. If it
remains out of control, inflation results in huge
rises in costs coupled later with a sharp increase
in war labor wages. Unable to assess values in
such a mercurial market, business finds it diffi-
cult to plan ahead and Congress has no accurate
guide for enacting a sound tax program. Inevi-
tably, goods are hoarded against rising prices,
and men and materials are drawn to the most
inflated industries-industries that may be rela-
tively unimportant in war production.
Q. Isn't it possible to solve the problem by
printing more money?
A. Some governments have tried it They have

deliberately lowered the value of their currency
in an effort to counterbalance rising prices. But
printing more money has started price rises all
over again. The faster prices went up, the
faster the government had to print money, and
at

the faster they priited more the faster prices
went' up. In the end there was national bank-
ruptcy.
Q. Who would profit from uncontrolled in-
flation?
A. In the early stages, those who owe money
and those who have laid away stores of goods.
A man who owes $100 today may figure that he
owes 10 days work. Similarly, as prices rose,
the man who hid away a warehouse full of $4
hams would find he had, possibly, a warehouse
full of $9 hams.
But in the end, these superficial advantages
might prove valueless-a $5 profit on a ham
perhaps would not be enough to buy a pound
of peanuts for the next pig-and the higher
wages which appeared to benefit the debtor
might not cover the inflated costs of food,
clothing and shelter for himself and his family.
Do wages ever rise more rapidly than prices?
A. In every inflation in history, Wages and
salaries have lagged behind the general rise.
That is the deadly danger. Wages seem to be
more-there is actually more money in the pay-
check. But that increase is more than offset by
the rise in prices. So, in reality, the wage
earner's standard of living is lowered.
Q. Who suffers most from uncontrolled infla-
tion?
A. Everyone except the very few. Hardest hit
are those who depend for their livelihood on
returns from insurance policies, annuities, pen-
sions, money in the bank, bonds, etc. While
their costs go up, up, up-their income remains
fixed. That means less food, no new clothes, a
step down in living quarters-affecting, in many
cases, old people, the disabled and others who
are unable to work for a living Wage earners
themselves, as we have seen, are pinched by a
rise in costs far in excess of the rise in wages.
Our children and our children's children-they
would suffer too. In the last war, inflation added
thirteen and one-half billion dollars to our war
bill-in this war, if unchecked, it may add 100
billion dollars.
Q. How can inflation be stopped?
A. There is only one way-an effective, wide-
scale government program to stabilize prices.
Halt the price rise in its tracks and you halt
inflation. Halt inflation and you strengthen
the home front. Strengthen the home front and
you help to win the war.
The Reply Churlish
by TOUc tirONE
MARK VAN AKEN rates an apology, and this
is it. In Tuesday's column I inadvertently
lambasted the hell out of Mark's name and
reputation without bothering to call him or in-
vestigate thoroughly the matter about which I
was sore. For my haste, and the repercussions
it had on Mark, I apologize. The remarks on
the plaque trade, and the wording of the form
letter which was under discussion still stand,
but Mark was not responsible for the letter.
His name was used on the letterhead by a firm
selling the plaques. His name was signed in ink
at the end of the letter, but the signature was
not his. I have talked to him, and I can per-
sonally say that he is not the sort of a guy who
does such things. One of these days I shall get
rid of my nasty habit of going off half-cocked,
and avoid hurting people who don't deserve it.
The damage has already been done, but I can
only hope this will in some way compensate for
the terms of unendearment which I hurled too
promiscuously at Mark.
The thing worked out this way. A stationery
firm for which Mark has been campus salesman
wrote to him and asked if he would obtain a
student directory to be used by the plaque outfit
in a sales campaign. There was no mention of
the fact that Marl's name would be used in
the campaign, nor was he consulted on the
wording of the letter. The letters were sent by
express, already sealed, and lie was asked to
mail them from Ann Arbor. He did not see
Ihe letters until several of them were returned
becaise of incorrect addresses. He has written
to the firm which used his name, asking for an
explanation. As far as my column is concerned,
I can only say that I am sorry to have thrown

the rib at Mark personally on an issue which is
not a personal one. He was not to blame. I was,
but only to the extent that the column affected
Mark personally. The rest of it, and I am glad
to say that Mark agrees with this, should and
does stand. The letter, though not written by'
a student, is a no good letter, and should be pub-
licized as such. I can only hope that in some
way Mark will be able to make the firms respon-
sible for it sweat just a little.
HAVE severa I of these tender spots in my
miakeiip, ibut probably thte i'iatter of my par-
ents and the U V('iv'rsiy is the most important
of them all. I know I 1itt many other kids here
feel as I do about ,Liis contin ual fight to live up
to what our parents deserve of us -not that they
expect it or demand it, but only the fact that'
they sacrifice to send us here, and have perhaps
too much respect for the University, Maybe I
was rough; certainly I was not fair to Van Aken.
But now that the personal element has been
retracted, I'll let the column stand as is on the
issue involved, and if each of the cracks at Mark
can be redirected towards the outfit which wrote
the letters, I think the roughness is still justi-
fiable. The whole deal, viewed in the light of
the addi onal wrong jlOne to an innocent per
son, seems to mie to be just that much dirtier.
Mark has taken a, drubbing he didn't deserve.

DAILY OFFICIAL
BULLETIN
THURSDAY, APRIL 23, 1942
VOL. LI. No. 152
Publication in the Daily Official
Bulletin is constructive notice to all
members of the University.
Notices
Registration for Selective Service:
1. Date of Registration: April 27.
One day only.
2. Who Shall Register:
All males born on or before Decem-
ber 31, 1921, who have not registered
for Selective Service at earlier times
and who will not have passed their
sixty-fifth birthday on April 27, 1942.
Individuals who have previously
registered for the Selective Service
do not reregister at this time.
3. Places of Registration:
For the convenience of University
employees the following arrange-
ments have been made for their
registration:
(a) University Hospital staff and
patients will register in the Hospital
at a time and place to be designated
by Mr. A. B. Cook, Assistant Director.I
(b) Buildings and Grounds em-
ployees will register at a time and
place to be announced by Mr. E. C.
Pardon, Superintendent of Buildings
and Grounds.
(c) Assistant Dean Charles T.
Olmsted will be in charge of the regis-
tration of all other University em-
ployees. Registration for this group
will berheld in Room 4, University
Hall from 8 a.m to 12 noon, and
from 1:30 p.m. to 4:30 p.m. Any
individual wishing to register before
or after these designated hours may
do so at Tappan School or Slauson
School.
4. Registration Certificate:
Each registrant will be given a cer
tificate which he should carry at all
times, "as he may be required to show
it from time to time."
5. Change of Address after Regis-
tration: Each individual who changes
his address at any time after regis-
tration should address a communi-
cation fo his Selective Service Board
indicating his new address. This is
the individual's responsibility and
cannot be borne or shared by any-
one.
Robert L. Williams
Ionors Convocation: The Nine-'
teenth Annual Honors Convocation
of the University of Michigan will be
held Friday, April 24, at 1':00 a.m.
in Hill Auditorium. Classes, with the
exception of clinics, will be dismissed
at 19:45 a.m. Those students in
clinical classes who are receiving
hono~ys at the Convocation will be ex-
cused in order to attend. The Facul-
ty, seniors, and graduate students
are requested to wear academic cos-
tume, but there is no procession.
Members of the faculty are asked to'
enter by the rear door of Hill Audi-
torium and proceed directly to the
stage, where arrangements have been
made for seating them. The public
is invited.
Alexander' G. Ruthvenj
Residence Halls for Men and Wo-
men Applications for Staff Positions:
Upperclass, graduate, and profession-
al students who wish to apply for
Staff Assistantships and other stu-
dent personnel positions in the Resi-
dence Halls may obtain application
blanks in the Office of the Director
of Residence Halls, 205 South Wing.1
Unmarried members of the faculty
holding the rank of Teaching Fellow
or above are invited to apply for
Resident Adviserships in the Quad-
rangles (House Masterships). Posi-
tions-of all grades will be open for
the Fall and Spring Terms; and it is
probable that there will be a limited
number of student and faculty staff
vacancies for the Summer Term.

Karl Litzenberg
lgineering Students: The Depart-
ment of Mechanism and Engineering
Drawing is desirous of obtaining sev-
eral Engineering Students who have
Drawing 1, 2, and 3 to act as student
assistants in the Ordnance Training
Courses. They must be free on M.
W. F. 10-12 or Tu., Th., S. 10-12. The
Course runs from April 27 to July 25,
including the two weeks that the
regular students have vacation, May
30 to June 15. Apply to Col. H. W.
Miller, room 412, W. Eng.
Candidates for the Teacher's Cer-
tificate for May, 1942 are requested
to call at the office of the School
of Education, 1437 UES, during the
week of April 27, between the hours
of 1:30 and 4:30,, to take the Teacher
Oath whiclm is a requirenmeut for the
(e!'ti Lieate.
T1each ing Departments Wishing to
lRecomm-nd tentative May graduates
from the College of Literature, Sci-
ence and the Arts and the School of
Education for Departmental Honors
should send such names to the Regis-
trar's Office, Room 4, U. Hall before
May 15, 1942.
Robert L. Williams,
Assistant Registrar.
Th l'e vjel'sity Butreau of Appoinrt-
ow1uts has received notification of the
following Civil Service Examinations.
Detroit Civil Service

Sheet Metal Worker (Male), $1.10,
May 1, 1942.
Calculating Machine Operator, $1,-
560 ($1,716 after 7/1/42), May 5,
1942.
Posting Machine Operator (Tem-
porary employment only), $1,560 ($1,-
716 after 7/1 /42), May 5, 1942.
Communicable Disease Nurse (Fe-
male), $1,800 ($1,980 after 7/1/42),
May 11, 1942.
Technical Aid: (Bus. Adm.; Gen-
eral; Medical Science; (Male and
Female). Salary, $1,560 ($1,716 after
7/1/42); Last filing date May 4,
1942. Residence rule waived fortmale
applicants; residence rule restrict-
ed to State of Michigan for female
applicants.
Bureau of Appointments and
Occupational Information
The University Bureau of Appoint-
ments wishes to again -call attention
to the United States Civil Service
Announcement of the examination
for Junior Professional Assistant.
This examination is open to graduat-
ing seniors in all fields. Applica-
tions will be accepted until April 27,
1942. Further information and the
application form may be obtained
at the offices of the Bureau of Ap-
pointments, 201 Mason Hall. Office
hours, 9-12 and 2-4.
Bureau of #ppointments and
Occupational Information
Acadenic Notices
Biological Cihemistry Seminar will
meet on Saturday, April 25, at 11:00
a.m., in Room 319, West Medical
'Building. Topic: "Vitamin A-Func-
tional Studies." All interested are in-
vited.

German 160 will meet today
p.m. in room 407 Library.

"I like to look at our 1934 headlines-reminds me of the gay,
carefree days."

GRIN AND BEAR IT By Lichty
/ '.
. ~ t
C- 'may' %. a

at 4:15

Doctoral Examination for Rosalind
Marie Zapf. Education; thesis: "In-
cidence and Modification of Super-
stitious Beliefs of Junior High School,
Pupils." Today, 4:00 p.m., West
Council Room, Rackham Building.
Chairman, W. C. Trow.
By action of the Executive Board,,
the Chairman may invite members
of the faculties and advanced doctor-
al candidates to attend the examina-
tion and he may grant permission to
those who for sufficient reaso'a might
fwish to be present.
. C. S. Yoakum
Doctoral Examination for Cheng
Kwei Tseng, Botany; thesis: "Mono-
graphic Studies of the Rhodophyceae
of Hong Kong." Today, 1139 Natur-
al Science, 2:00 p.m. Chairman, W.
R. Taylor.
By action of the Executive Board,
the Chairman may invite members
of the faculties and advanced doc-
toral candidates to attend the exam-
ination and he may grant permission
to those who for sufficient reason
might wish to be present.
C. S. Yoakum
Doctoral Examination for Min-
Chen Wang, Physics; thesis: "A
Study of Various Solutions of the
Boltznima<m Equation." Today, 172
Rackham, 3:00 p.m. Chairman, .
E. Ulilenbeck.
By action of tLie Executive Board,
the Chairman may invite members
l of the faculties and advanced doc-
toral candidates to attend the exam-
ination and he may grant permission
to those who for sufficient reason'
might wish to be present.
C. S. Yoakum
Doctoral Examination for Theodore
Christian Kramer, Anatomy; thesis:
"The Partitioning of the Truncus and
Conus and the Formation of the
Membranous Portion of the Interven-
tr.cular Septum in the Human
Heart." Today, 3502 East Medical,
3:00 p.m. Chairman, B. M. Patten.
By action of the Executive Board,
I tsn Ohf.irmn r,n u' irriInv it ',p~n-n,,

p.m. Chairman, A. B. Moehlman.
By action of the Exeutive Board,
the Chairman may invite members
of the faculties and advanced doctor,-
al candidates to attend the examina-
tion and he may grant permission to
those who for sufficient reason might
wish to be present.
C. S. Yoakum
Directed Teaching, Qualifying Ex-
amination: All students expecting to
elect' directed teaching (Educ D100)
next semester are required to pass a
qualifying examination in the sub-
ject which they expect to teach. This
examination will be held on Satur-
day, May 9, at 1 o'clock. Students
will met in the auditorium of the
University High School. The exam-
ination will consume about four
hours' time; promptness is therefore
essential.
May Candidates for the Teacher's
Certificate: The Comprehensive Ex-
amination in Education will be given
on Saturday, May 9, from 9 to 12
o'clock (and also from 2 to 5 o'clock)
in the auditorium of the University
High School. Students having Sat-
urday morning classes may take the
examination in the afternoon. Print-
ed information regarding the exam-
ination may be secured in the School
of Education office.
-Pre-medical Students: Attention is
again called to the Medical Aptitude
Test of the Association of American
Colleges which will be given here on
Friday, April 24. This test is a nor-
mal requirement for admission to
practically all medical schools, and
is -given but once a year. Students
who expect to enter a medical school
in the school year of 1943-1944
should take the examination at this
time. Requirements for admission
to a medical school do not need to
be completed at the time of the test.
However, it is doubtful that anyone
with less than sophomore standing
will be prepared at this time for the
examination.
Further information may beaob-
tained in Room 4 University Hall,
and tickets should be purchased im-
mediately at the Cashier's Office.
Concerts
The University of Michigan Men's
Glee Club, David Mattern, Conductor,
will present its annual spring con-
cert at 8:30 tonight in Hill Auditori-
um. The first part of the program
will consist of songs, by the Glee
Club with Kenneth Repola, Leo Im-
peri, Donald Plott, James Gillis, Dan
Saulson and Robert Thompson as
soloists. During the second part the
audience will be asked to join in sing-
ing old favorites. The concert will be
open to the public.
The carillon concert for today' will
be dedicated to Poland and will con-
sist of Polish national, army, and
folk songs as well as a selection from
the opera Halka and the "Revolu-
tionary" Etude by Chopin. The Uni-
versity Carillonneur, Percival Price,
will present the program from 7:15
to 8:00 p.m.
The University of Michigan. Choir
under the direction of Hardin Van
Deursen, Conductor, will be heard at
8:30 Sunday evening, April 26, in
Lydia Mendelssohn Theater, with
Leo Imoeri and Robert Holland as
soloists. The- choir will be assisted
in the program by a clarinet quartet
organized and trained by William H.
Stubbins of the faculty of the School
of Music. The public is cordially
invited.
!xhibition: Museum of Art and
Archaeology, The Maud Ledyard von
Ketteler Collection of the University

Washington
NMciryGo-Rou id1

WASPI INGT''ON- Tlme're was a very good reason
for1 tie hot erack of Attorney General Fran-
cis Biddle that Mi-tin Dies is a muddling "ama-
teur" investigator.
Biddle believes the Justice Department has
the Texas congressional sleuth over a barrel,
and the surprise crack was the opening shot of
a fusillade soon to be fired.
In a long series of reports, Dies has charged
that more than 1,200 Communists and fellow
travelers have jobs in government agencies in
WasIington. Recently their names plus Dies'
evide(c'e were t lirned over to suiper sleuth m e
Edgar flooverI foi a further probe, belore dis-
missing all thOuse acwtally found to be eds, 'I'he
FBI investigation hma s now beein completed and

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