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EXECUTIVE ORDER

PROVIDING FOR THE STABILIZING OF THE NATIONAL ECONOMY
By virtue of the authority vested in me by the Constitution and the statutes, ana particularly by the Act of October Z,
1942, entitled "An Act to Amend the Emergency Price Control Act
of 1942, to Aiu. in Preventing Inflation, ana tor Other Purposes",
as President of the United States ana Commander in Chief of the
Army ana Navy, and in order to control so far as possible the
inflationary tendencies and the vast aisiocations attendant
thereon which threaten our military effort ana our aomestic
economic structure, and for the more effective prosecution of
the war, it is hereby ordered as follows:
TITLE I
Establishment of an Office of Economic Stabilization
1. There is established in the Office for Emergency
Management of the Executive Office of the President an Office of
Economic Stabilization at the head of which shall be an Economic
Stabilization Director (hereinafter referred to as the Director).
Z. There is established In the Office of Economic
Stabilization an Economic Stabilization Board witn which the
Director shall advise and consult. The Board shall consist of
the Secretary of the Treasury, the Secretary of Agriculture, the
Secretary of Commerce, the Secretary of Labor, the chairman of
the Board of Governors of the Federal Reserve System, the Director
of the Bureau of the Budget, the Price Aoministrator, the Chairman of the National "war Labor Board, and two representatives each
of labor, management, and farmers to be appointed by the president.
The Director may invite for consultation the head of any other department or agency. The Director shall serve as Chairman of
the Board.
o. The Director, with the approval of the President,
shall formulate a i develop a comprehensive; national economic policy
rd
relating to the control of civilian purchasing power, prices, rents,
wages, salaries, profits, rationing, subsidies, ana all related
matters — all for t i purpose of preventing avoidable increases
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in the cost of living, cooperating in minimizing the unnecessary
migration of labor from one business, industry, or region to
another, and facilitating the prosecution of the war. To give
effect to this comprehensive national economic policy the director
shall have power to issue directives on policy to the Federal departments and agencies concerned.
4. The guiding policy of the Director and of all departments and agencies of the Government shall be to stabilize
the cost of living in accordance with the Act of OctoDer Z, 1942$
and it shall be the duty and responsibility of the Director and
of all departments and agencies of tho Government to cooperate in
the. execution of such administrative programs ana in the development of sucn legislative programs as may be necessary to that end.
The administration of activities related to the national economic
policy shall remain with the departments ana agencies now responsible
for such activities, but sucn administration shall conform to the
directives on policy issued bj the Director.
TITLE II
wage ana Salary Stabilization Policy
1. No increases in wage rates, granted as a result of
voluntary agreement, collective bargaining, conciliation, arbitration, or otherwise, and no decreases in wagt rates, shall be



-zauthorized unless notice of such increases or decreases shall
have been filed with the National War Labor Board, and unless
the National War Labor Board has approved such increases or
decreases.
2. The National War Labor Boara shall not approve
any increase in the wage rates prevailing on September 15, 1942,
unless such increase is necessary to correct maladjustments or
inequalities, to eliminate substanuards of living, to correct
gross inequities, or to aid in the effective prosecution of the
war.
Provided, however, that where the National War Labor
Board or the Price Administrator shall hcive reason to believe
that a proposed wage increase will require a change in the price
ceiling of the commodity or service involved, such proposed
increase, if approved by the National War Labor Board, shall
become effective only if also approved by the Director.
0. The National "War Labor Board shall not approve a
decrease in the wages for any particular work below the highest
wages paid therefor between January 1, 1942 and September 15,
1942, unless to correct gross inequities and to aid in the
effective prosecution of the war*
4. The National War Labor Board shall, by general
regulation, make such exemptions from the provisions of this
title in th,e case of small total wage increases or decreases
as it deems necessary for the effective administration of this
Order.
5. No increases in
per year (except in instances
assigned to more difficult or
until otherwise determined by

salaries now in excess of ^5,000
in which an individual has been
responsible work), shall be granted
the Director.

6. No aecrease shall be made in the salary for any
particular work below the highest salary paid therefor between
January 1, 1942 and September 15, 1942 unless to correct gross
inequities and to aid in the effective prosecution of the war.
7. In order to correct gross inequities and to provide for greater equality in contributing to the war effort,
the Director is authorized to take the necessary action, and to
issue the appropriate regulations, so that, insofar as practicable,
no salary shall be authorized under Title III, Section 4 to the
extent that it exceeds 425,000 after the payment of taxes allocable
to the sum in excess of |i25,000. Provided, however, that such
regulations shall make due allowance for the payment of life insurance premiums on policies heretofore issued,-and required payments on fixed obligations heretofore incurred, ana shall make
provision to prevent undue hardship.
8. The policy of one Federal Government, as established
in Executive Order No. 9017 of January 12, IS42, to encourage free
collective bargaining between employers and employees is reaffirmed
and continued.
9. Insofar as the provisions of Clause (1) of section
5O2(c) of the Emergency Price Control Act of 1942 are inconsistent
with this Order, they are hereby suspended.
TITLE III
Administration of Wage and Salary Policy
1. Except as modified by this Order, the National War
Labor Board shall continue to perform the powers, functions, and
duties conferred upon it by Executive Order No. 9017, and the



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- 3 functions of said Board are hereby extended to cover all industries and all employees. The National ,Yar Labor Boara shall
continue to follow the procedures specified in said Executive
Order.
Z. The National i T r Labor Boara snail constitute the
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agency of the Federal Government authorized to carry out the
wage policies stated in this Order, or tht directives on policy
issued by the Director under this Order. The National War Labor
Board is further authorized to issue such rules ana regulations
as may be necessary for the speedy determination of the propriety
of any wage increases or decreases in accordance with this Order,
and to avail itself of the services ana facilities of such State
and Federal departments ana agencies as, in the discretion of
the National War Labor Board, may be of assistance to the Boara.
5. Mo provision with respect to wages contained in any
labor agreement between employers ana employees (including the
Shipbuilding Stabilization Agreements as amended on May ID, 1942,
ana the Wage Stabilization Agreement of the Building Construction
Industry arrived at May ZZ, 1942) which is inconsistent with the
policy herein enunciated or hereafter formulated by the Director
shall be enforced except with the approval of the National War
Labor Board within the provisions of this Order. The national
War Labor Board shall permit the Shipbuilding Stabilization
Committee and the Wage Adjustment Board for the Building Construction Industry, both, of which are provided for in the foregoing agreements, to continue to perform their functions therein
set forth, except insofar as any of them is inconsistent with
the terms of this Order.
4. In oraer to effectuate the purposes aid provi sions
of this Order and the Act of October Z, 1942, any wage or salary
payment made in contravention thereof shall be disregarded by
the Executive Departments and other governmental agencies in
determining the costs or expenses of any employer for the purpose
of any law or regulation, including the Emergency Price Control
Act of 1942 or any maximum price regulation thereof, or ror the
purpose of calculating deductions under the Revenue Laws of the
United States or i o the; purpose of determining costs or expenses
'r
under any contract made by or on behalf of the Government of the
United States.
TITLE IV
Prices of Agricultural Commodities
1. The prices of agricultural commodities and of commodities manufactured or processed in whole or substantial part
from any agricultural commodity shall be stabilized, so far as
practicable, on the basis of levels which existed on September 15,
1942 and in compliance with the Act of October Z, 1942.
Z. In establishing, maintaining or adjusting maximum
prices for agricultural commodities or lor commodities processed
or manufactured in whole or in substantial part from any agricultural commodity, appropriate deductions shall be made from
parity price or comparable price for payments made under the
Soil Conservation and Domestic Allotment Act, as amended, parity
payments made under the Agricultural Adjustment Act of 1958, as
amended, ana governmental subsidies.
3. Subject to the directives on policy of the
the price of agricultural commodities shall be established or
maintained or adjusted jointly by the Secretary of Agriculture




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- 4 and the Price Administrator j and any disagreement between them
shall be resolved by the Director. The price of any commodity
manufactured or processed in whole or in substantial part from
an agricultural commodity shall be established or maintained or
adjusted by the Price Administrator, in the same administrative
manner providad for under the Emergency Price Control Act of 1942.
4. The provisions of sections 3(<a) and 3(c) of the
Emergency Price Control Act of 1942 are hereby suspended to the
extent that such provisions are inconsistent with any or all
prices established under this Order for agricultural commodities,
or commodities manufactured or processed in whole or in substantial
part from an agricultural commodity.
TITLE V
Profits and Subsidies
1. The Price Administrator in fixing, reducing, or
increasing prices, shall determine price ceilings in such a
manner that profits are prevented which in his judgment are
un re a s on able or exo rb i tan t.
2. The Director may direct any Federal department
or agency including, but not limited to, the Department of
Agriculture (including the Commodity Credit Corporation and
the Surplus Marketing Administration), the Department of Commerce, the Reconstruction Finance Corporation, and other corporations organized pursuant to Section 3d of the Reconstruction
Finance Corporation Act, as amended, to use its authority to
subsidize and to purchase for resale, if such measures are necessary to insure 'the maximum necessary production and distribution
of any commodity, or to maintain ceiling prices, or to prevent
a price rise inconsistent with one purposes of this Order.
TITLE VI
General provisions
1. Nothing In this Order shall be construed as
affecting the present operation of the Fair Labor Standards
Act, the National Labor Relations Act, the Ufalsh-Healey Act,
the Davis-Bacon Act, or the adjustment procedure of the Railway
Labor Act.
2. Salaries and wages under this Order shall include
all forms of direct or indirect remuneration to an employee or
officer for work or personal services performed for an employer
or corporation, including but not limited to, bonuses, additional
compensation, gifts, commissions, fees, and any other remuneration
in any form or medium whatsoever, (excluding insurance and pension
benefits in a reasonable amount as determined by the Director);
but for the purpose of determining v/ages or salaries for any period
prior to September 16, 1942, such additional compensation shall
be taken into account only in cases where it has bt^n customarily
paid by employers to their employees. "Salaries" as used in this
Order means remuneration for personal services regularly paid on
a weekly, monthly or annual basis.
5. The Director shall, so far as possible, utilize the
information, data, and staff services of other Federal departments
and agencies which have activities or functions related to national
economic policy. All such Federal departments and agencies shall
supply available information, data, and services required by the
Director in discharging his responsibilities.




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4. The Director shall be the agency to receive
notice of any increase in the rates or charges of common
carriers or other public utilities as provided in the aforesaid Act of October 2, 1942.
5. The Director may perform the functions and
duties, and exercise the powers, authority, and discretion
conferred upon him by this Order through such officials or
agencies, and in such manner, as he may determine. The
decision of the Director as to such delegation ana the manner
of exercise thereof shall be final.
6. The Director, if he deems it necessary, may
direct that any policy formulated under this Order shall be
enforced by any otner department or agency unaer any other
power or authority which may be provided by any of the laws
of the United States.
7. The Director, who shall be appointed by the
President, shall receive such compensation as the President
shall provide, and within the limits of funds which may be
made available, may employ necessary personnel and make
provision for supplies, facilities ana services necessary to
discharge his responsibilities.

FRANKLIN D. ROOSEVELT

THE WHITE HOUSE,




October 3, 1942.

FOR iffiE PRESS

IKMEDIATii HSLEAS2

O T B R 3, 1942
COE

She President today addressed two l e t t e r s to Leon
Henderson, administrator, Office of Price administration, the
texts of which follow:
1 have signed the cost of l i v i n g s t a b i l i z a t i o n b i l l .
I wish that you would consult with the Secretary of
Agriculture and immediately establish ceiling prices for eggs,
chickens, butter, cheese, potatoes, flour and such other- foods
as can be controlled under existing laws.
In line with my recent message to the Congress, you
should consider present governmental payments to agricultural
producers, and subsidy payments in arriving at the minimum
ceiling prices.
This Government i s determined to use a l l of i t s powers
to prevent any avoidable 2i.se in the cost of l i v i n g .

That part of the nation which has not yet been designated within defense rental areas should now be so t r e a t e d . i»
fe
'
should make no d i s t i n c t i o n between c i t y and country residents
as to t h e i r participation i n the t o t a l war effort.
Certainly
the contribution of agriculture to the effective prosecution of
the war i s clear.
Therefore, our rural population equally deserves to have i t s rents s t a b i l i z e d .
i wish you would immediately issue
to prevent rent increases on urban and rural
such areas as you deem appropriate to reduce
am sure you will proceed to take such action
sary.




appropriate orders
dwellings.
In
current rents, 1
as may be neces-