Full text of Wartime Prices, Price Control, and Rationing in Foreign Countries : Bulletin of the United States Bureau of Labor Statistics, No. 851

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UNITED STATES DEPARTMENT OF LABOR
L. B . Schw ellenbach, Secretary
B U R E A U OF L A B O R STA TISTIC S
Isador L ubin , Commissioner (on leave)
A . F . H inrichs, Acting Commissioner

Wartime Prices
Price Control, and Rationing
in Foreign Countries

Bulletin T^o. 851

For sale by the Superintendent of Documents, U. S. Government Printing Office
Washington 25, D. C. - Price 10 cents







Letter of Transmittal
U nited States D epartment of L abor,
B ureau of L abor Statistics,

Washington, D. C., November 28, 1945.
The Secretary of L abor :
I have the honor to transmit herewith a report on wartime prices, price con­
trol, and rationing in foreign countries. This report was prepared by Faith M.
Williams, the Bureau’s consultant on costs and standards of living, with the
assistance of the Bureau’s staff on foreign labor conditions.
A. F. H inrichs, Acting Commissioner.
Hon. L. B . SCHWELLENBACH,
Secretary of Labor.




(HI)

Contents
Page

Recent price trends in foreign countries:
Situation of a typical worker in France______________
General situation in Europe, other than France____________________
General situation in South America andthe Far East________________
Purchasing power of wages during the war period__________________
Statistics of prices_______
Retail-price indexes_____________
Wholesale-price indexes_______________________________________
Indexes of food and clothing prices____________________________
Price control and rationing in foreign countries during the war:
Summary-----------------------------------------------------------------------------New Zealand---------------------------------------------------------------------------------Australia---------------------------------------------------------------------------------------Canada___________________________________________________________
United Kingdom__________________________________________________
Union of Soviet Socialist Republics_______________________________
France------------------------------------------------------------------------------------------Italy-------------N orw a y .--------------------------------------------------------------------------------------Denmark__________________________________________________________
Sweden____________________________________________________________
Poland____________________________________________________________
Switzerland________________________________________________________
Egypt------------------------------------------------Iran_______________________________________________________________
Palestine__________________________________________________________
Mexico------------------------------------------------------------------------------------------Brazil-------------------------------------------------------------------------------------------Bolivia____________________________________________________________
Chile_____________
Argentina.----------------China-------------------------------------------------------------------------------------------Germany__________________________________________________________
Japan--------------------------------------------------------------------------------------------




(IV)

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Bulletin No. 851 o f the
United States Bureau o f Labor Statistics
[Reprinted from the M onthly L ab or R ev ifw , October and November 1945, with additional data]

WARTIME PRICES, PRICE CONTROL, AND
RATIONING IN FOREIGN COUNTRIES
Recent Price Trends in Foreign Countries
Situation o f a T ypical W orker in France

Jean Le Breque is a typical French worker in a large truck
factory in Lyons. He is living in a country where homes, factories,
and transportation facilities have been damaged by war and enemy
occupation, and where civilian supplies are extremely short. Before
and during most of the war, his was one of 200 families living in a
model housing project, the Cite Ouvriere, near the plant where he
works. The project was almost entirely destroyed by air raids in
the spring of 1944. His family had to move to crowded quarters
at some distance from the plant. He used to go to work on a bicycle
but recently the tires gave out, and he has not been able to buy new
ones.
Le Breque’s pay envelope, like that of the average French worker,
holds over three times as many francs as before the war. Early in
1945 there was a general upward revision of French wage rates, and the
difference between wages in Paris and in the rest of the country was
reduced, but in early summer Lyons workers still found it difficult to
feed, clothe, and house themselves and their families.
Twenty-five percent of the workers in the factory where Jean Le
Breque is employed have been found to have tuberculosis. Most of
them are under normal weight and the health of the younger workers
is particularly bad.
At present the rise of prices for food is one of Jean Le Breque’s
special worries. Ceiling prices of rationed goods are said by the
Ministry of Finance to have somewhat more than tripled since August
1939, but the ration is not large enough to supply all the food needed
to prevent actual hunger, and prices both of unrestricted items and
on the black market have gone up far beyond Le Breque’s ability to
pay. In order to encourage increased farm production, French
authorities removed fresh fruits and vegetables from price controls and
the prices of these commodities rose sharply during the spring. The
Government planned to open retail outlets at which housewives could
buy at prices fair both to grower and to consumer. Frosts early in
May damaged fruit and nut trees, vineyards, and the early potato
crop. Insecticides are in short supply and insect damage has been
serious for crops in some areas.
The plant where Jean Le Breque works has a farm of about 600
acres which is managed by the workers, and they also have the re­




(1 )

2
sponsibility for procurement of food for the factory canteen, finding
lodging for the labor force, and repairing and rebuilding the workers’
housing project. An economist from the staff of the United States
Embassy in Paris who visited this Lyons plant in May reported1
that it had been taken over by the French Government because the
owner and director of the factory had been a collaborationist. The
works are now managed by a director appointed by the Regional
Commissioner of the French Republic and by a council of the workers
which takes part in and shares the responsibilities for management of
the enterprise. The director of the plant stated that—
Apart from the working out of directives, and of policies and relations with
central authorities with respect to the procurement and allocation of resources,
most of the responsibilities for the management of the works, as well as for the
living and other conditions of the workers, has been vested in the workers them­
selves. There was obviously a fervor on the part of the workers involved, which
had enabled them to overcome very serious obstacles in the carrying out of their
duties. They had apparently continued to work throughout the winter months,
often in open sheds with little or no roofing, practically no glass and sometimes at
a temperature of minus 10 degrees centigrade, and poorly fed and clothed.
The yield in output per worker was asserted by the director to have increased
by 40 to 50 percent by comparison with 1943, when the factory was being utilized
to the full. It wfts also stated that there were fewer accidents, and that as a
result of workers1 council, suggestions were continually being put before the at­
tention of the management, either for improvement in production, or in increasing
the work load on individuals who believed that they were not producing as much
as they could, or being utilized to the best of their capacities. Absenteeism was
said to account for 14 percent as against roughly 25 percent before liberation.

Absenteeism in plants throughout the area was reported to be due
in part to the time required by workers to go into the farm areas out­
side the city for food needed for their families. Shortages of meat,
fats, and oils were reported to be general throughout France. Supplies
of clothing and household goods were also very low, and recent reports
from France have noted that “ in a substantial ’percentage of the
shops, stocks are so depleted as hardly to warrant keeping the estab­
lishment open.” Railroad bridges were destroyed, supplies of railroad
equipment were far below prewar levels, and tracks and equipment
were badly in need of repair. It has, thus, been very difficult to dis­
tribute fairly among the population the goods that are available.
Very little information is available in the United States on price
changes in France during the war period. In January 1944, it was
stated that the index of cost of living at the end of 1943 was 260 as
compared with 100 in August 1939. Clothing prices had quadrupled,
food prices had more than doubled, with smaller increases for light
and rent. Recently, as noted, the Ministry of Finance estimated that
prices of rationed goods have somewhat more than tripled and that
prices of other goods are much higher. The above description of the
situation of a typical French worker in Lyons has been given in some
detail because more specific information about working and living
conditions is available from the Lyons area than from most other
cities abroad at the present time. This material, which comes from
the reports of well-trained observers on the spot, makes it clear that
price increases, which are characteristic of war and postwar periods,
simply reflect shortages of consumers’ goods, transportation, and
production equipment, and the decline in productive capacity which
comes with war suffering and war fatigue.
i Consular report from Rifat Tirana, U. S. Embassy in Paris, May 6,1945




3

,

General Situation in Europe Other Than France

The situation in other countries in Europe which have been the
scene of conflict is similar in varying degree to that in France. Men,
women, and children in every country of the world have been affected
in one way or another by the shortages which follow the diversion of
a large proportion of the population to the armed forces and to the
production of war materials. In the countries where production
equipment and transportation facilities have been destroyed and
the health of the population has been undermined by food shortages
imposed by the Axis powers, the situation is inevitably much worse
than in countries far from the combat zones. There is, however, no
country, for which information is available, in which there have not
been wartime shortages of consum ed goods and consequent price
increases.
Governments generally have attempted to bring about a fair dis­
tribution of the available supplies of consum ed goods by price con­
trols and rationing. The success of the controls imposed has varied
widely from country to country and has been determined in impor­
tant part by the method of war financing used by the government.
In countries where a large proportion of war expense has been met
by taxation and by borrowing directly from individuals through war
bonds issued in small denominations, part of the surplus purchasing
power which inevitably accumulates in wartime has thus been removed
from competition for available supplies of civilian goods. Where the
major part of government war expenditure has been financed by
issuing fiat currency, the price situation has been much more difficult
to control. Obviously, the greater the war damage and the smaller
the supplies of consum ed goods, the harder it is to control prices.
In countries where supplies have not been large enough to meet the
rations set for civilians, or where the rations were not large enough to
maintain the population at a standard of living acceptable to the
majority of the people, large black markets have developed. In
addition, for effective administration of price controls there had to
be a strong central government with a body of well-trained workers,
high morale among the population, and a functioning transportation
system to carry goods from production areas to centers of population.
There are no published records of wartime trends of prices in the
Soviet Union, but people who have been in that country during the
war period report the maintenance of official prices on rationed items
(which include all kinds of consum ed goods) and a general accept­
ance by the population of the very low ration level. Invasion of the
country by the Axis forces made it necessary to set the rations far
below prewar consumption, and the maintenance of price controls
was made possible only by the high morale of the civilian population.
Foods produced in excess of the amounts rationed are sold in special
stores by the Government and in free markets by farmers; prices are
not controlled on the markets but tend to conform to the prices fixed
for the special stores which are much higher than prices for goods
sold on the rations.
In the United Kingdom and the British Dominions, price-control
and rationing systems have been relatively effective. In some of
these countries, price controls were not initiated until after consider­
able rise in prices had occurred, at least part of which was due to




4
higher costs of shipping and price increases in the countries from
which goods were imported. Food production was stimulated by
allowing farm prices to rise, and food prices were subsidized to some
extent at the wholesale or the retail level.
Until the autumn of 1944 average prices in Germany were main­
tained at relatively stable levels by drawing supplies from the occu­
pied countries and by a stem if not ruthless administration of pricecontrol and rationing regulations. By the spring of 1944 there were
reports of extreme shortages of meat and fats and of clothing and
household goods in Germany, and by the fall of the year there were
reports that an extensive black market had developed. Since the
capitulation of Germany there have been serious shortages of con­
sumers' goods and prices have been controlled by the Allied military
authorities at stable levels.
Prices in the northern countries which were occupied by Germany
or which were under German control apparently rose by 50 to 100
percent during the war period. No price indexes are available for
Poland. There, prices for rationed goods were controlled during
the German occupation, and no data are available to show the extent
of the black market.
Although the economic and political situation in Spain has been
in many ways different from that in Portugal, the two countries
have been alike in that their normal imports have been largely cut
off during the war period, and that extensive buying by the Axis
powers at relatively high prices reduced supplies and raised prices
in both countries. Official cost-of-living indexes show retail prices
in November 1944 as about 80 percent above 1939 levels in both coun­
tries. These indexes cover only a few commodities, and it may be
that a more complete price coverage would show that the increase
has been even greater.
In the countries of southern Europe, which have been the scene of
armed conflict almost continually since 1940 or 1941, the population
has suffered greatly not only because of shortages of essential supplies,
but also because the disorganization of government administrations
has made it impossible to establish effective price-control and ration­
ing systems. Reports in the press in these countries are confirmed by
observations by returned members of the United States Armies.
They show extreme price increases for even the most essential foods.
The years of World War II have brought considerable inflation in
the price structure of the middle eastern countries and Turkey,
although the situation has never been so extreme as in such war
areas as Greece and Italy. Allied military expenditures in the Middle
East and competitive bidding by the Axis and the Allies in Turkey,
while increasing the purchasing power and the amount of currency in
circulation, also reduced the supply of consumer goods and monop­
olized the means of transportation. Consumption levels in the
cities of the Middle East were drastically lowered and low-income
groups suffered. Figures on increases in prices in this area show
that retail prices to wage earners' families rose about 150 percent in
Palestine, almost 200 percent in Egypt, and almost 700 percent in
Iran from August 1939 to late 1944 or early 1945. In Iran the
control of supplies and prices was extraordinarily difficult because
of the influx of war workers of various kinds and the insufficiency of
transportation facilities.



5
General Situation in South Am erica and the Far E ast

In South and Central America, as in Europe, official price indexes
show that price increases have varied greatly from country to country.
In Argentina, prices have not increased greatly. A large proportion
of the consumers’ goods bought by families of Argentinian wage
earners is produced in the country, and food prices have been depressed
because some of the markets for foods exported in peacetime were
cut off by shipping shortages and other factors. At the other extreme
is Bolivia which imports an important proportion of its foodstuffs.
The official cost-of-living index for La Paz shows that the cost of
living almost tripled during the war period. Figures for Chile,
Mexico, and Nicaragua indicate that the retail prices have more
than doubled since 1939, and those for Colombia, Brazil, Costa
Rica, and Peru show advances of 50 to 80 percent.
Difficulties with the price situation are most extreme in China.
Before the war, price indexes were compiled for a number of Chinese
cities. The series for which current figures are now available in the
United States is that of the Nankai Institute of Economics, applying
to Chungking. Using average prices for July 1936-June 1937 as 100,
the wholesale-price index for Chungking for the third week in M ay'
1945 was 192500 and the index of cost of living for all classes in the
population was 144700. In evaluating the price situation in China it
is important to remember that the country has been at war with
Japan since 1937 and that its customary trade with Manchuria was
interrupted by Japanese aggression as early as 1931. Price control
has been especially difficult because a large proportion of the popula­
tion is rural, the transportation system has never been adequate to the
needs of the country, and a large part of the Chinese territory was
occupied by the Japanese army. Supplies of essential goods have
been totally inadequate to the needs of the population. The index
of cost of living in Chungking has included open-market prices of a
number of commodities that were unobtainable at official prices. The
use of open-market prices makes the index conform more closely to
the actual conditions met by Chinese workers. The Chinese Govern­
ment is giving consideration to the stabilization of the price situation,
as one of its most important financial objectives in the postwar
period.
The enormous depreciation of the value of the Chinese currency
has made it necessary to increase wages throughout the war. The
scattered statistics available here show, however, that wages have
not kept pace with the increases in living costs, in spite of the fact
that some factories have provided food and housing for part of their
workers and some have paid part of the wage in rice. For example,
a report on the situation of wage earners in a Government factory
in 1940, in Kunming, shows that “ even a skilled worker did not earn
much more than the unskilled farm laborer and the position of the
unskilled factory workers was decidedly inferior.” At that time civil
servants were paid allowances for dependents, which placed them in a
better economic situation than wage earners.
The price data available in this country for Japan extend through
February 1944. They do not show such extreme price changes as
in China; however, the indexes appear to be based on official price
676667°—46----- 2




6
ceilings, as reports indicate that Government efforts at control of
supplies and prices had not been successful and that there had been
great dissatisfaction among the people at the extent of the black
market and the heights to which black-market prices had risen.
Purchasing Pow er o f Wages D uring the W ar Period

When prices rise with shortages of consumers’ goods, the families
of wage earners and clerical workers whose incomes are fixed by
custom or by government order suffer more than other economic
groups whose incomes tend to rise with rising prices. Many reports
on wages in specific occupations or in specific industries abroad have
come to the United States during the war period, but inclusive indexes
of wage rates, orTof earnings, are available from very few countries.
The data which have been received show that in this, as in other
wars, wage rates and earnings have risen in all countries; in many,
however, wage rates have not risen as fast as the cost of living, and in
countries where inflation has been extreme, increases in earnings
have fallen far below increases in living costs.
In some countries, wage rates during the war period were definitely
adjusted upward as the official indexes of retail prices rose. In the
United Kingdom voluntary agreements for adjusting wages to
changes in the official cost-of-living index applied to 1% million
workers in 1939 and 2% million in 1944. However, the Government
did not legislate in this field.
Peacetime procedure in Australia required that basic wages should
be adjusted periodically as changes occurred in the official retail-price
index. When the price-stabilization measure of April 12, 1943, failed
to keep the index stable, the Government paid the added wage costs,
as price ceilings prevented employers from passing the increased wage
bill on to consumers. By order of October 24, 1941, the Canadian
Government introduced the payment of cost-of-living bonuses in
industry generally, making the bonus mandatory for 1-percent
increases in the cost-of-living index. The system was abolished on
February 15, 1944, and the prevailing bonuses were incorporated into
existing wage rates to form a basic wage. No further rises in wages
were to be permitted for the duration of the war, except to eliminate
gross inequities, and then only if such increases would not necessitate
price rises. The practice in New Zealand under the stabilization
program of December 15, 1942, was to vary wages according to
changes in the wartime price index, but on June 16, 1944, the Arbi­
tration Court was freed from the obligation of making such adjust­
ments, although it might do so in its discretion.
Immediately after the outbreak of the war in Europe, plans for
tying wages to the cost-of-living index were discussed in Norway,
Denmark, and Sweden. On November 13, 1939, the Danish labor
organizations reached an agreement with the employers’ association,
providing for specific increases in wages each quarter, provided the
cost-of-living index rose 3 or more points during the quarter. In
Norway, the wages of transport workers were tied to the cost-of-living
index in December 1939, and the question of extending this arrange­
ment was in process of discussion when the Nazis invaded Norway and
Denmark in April 1940. These agreements were canceled by the




7
Nazis. In Sweden, workers' and employers' associations agreed on
December 16, 1939, to adjust wages quarterly according to the
fluctuations in the cost-of-living index. The agreement was renego­
tiated annually up to 1945; however, wages did not rise after October
1942 to the end of the war, as the index, because of Government
price-stabilization measures, remained relatively stable.
Statistics

o f Prices

Most governments publish prices of the most important foods con­
sumed in their countries and most of the governments of the major
countries publish indexes of prices at both the wholesale and retail
levels. The war interrupted many of these index series, but it is
possible to assemble price indexes from a number of important
countries which indicate price trends from 1939 to late 1944 or early
1945.
RETAIL-PRICE

INDEXES

The retail-price indexes shown in table 1 are called “ cost-of-living
indexes" except in Australia and New Zealand. They are designed to
measure changes in the cost of a fixed bill of goods representing the
more important goods and services purchased by city wage earners.2
These indexes do not show changes in family expenditures during the
war period or differences in the cost of the same standard oMiving
from country to country; they show simply the average rate of price
changes at retail within each country. The Australian retail-price
index is weighted by the per capita consumption of goods consumed by
the entire Australian population. The kinds of goods and services
included in these indexes, methods of weighting and computing them,
and methods of collecting the prices on which they are based differ
considerably from country to country, and the series are consequently
far from comparable. They do, however, provide a basis for under­
standing how shortages of consumers' goods and the effectiveness of
price-control measures have affected the retail prices paid by wage
earners.
The trends in the price indexes since August 1939, in the various
countries for which data are available, are shown in table 1. The
number of commodities covered (shown—where available— at the
beginning of the table) provide a rough guide to the representa­
tiveness of the series. In some countries, the indexes are based on
official prices and do not take account of violations of ceilings set by
price-control authorities. In others, field representatives of the
government collect prices in personal interviews with store managers
and buyers in stores where wage earners buy regularly, as is done by
field representatives of the Bureau of Labor Statistics in the United
States. These indexes do not include black-market prices which
may be paid in fly-by-night hide-aways, but do take account of viola­
tions which occur in regular shops.
Diversion to war uses of many of the materials customarily used in
producing consumers' goods, the interruption of normal trade, and
shortages of manpower combined, during the war period, to reduce*
* In the case of China, the cost-of-living index given in table 1 is that prepared by the Nankai Institute of
Economics and represents changes in retail prices paid by all economic groups in the city of Chungking.
The Institute prepares an index of cost of living of laborers in Chungking but complete figures for this index
are not available in the United States. The index for Rio de Janeiro given in table 1 applies to goods pur­
chased by moderate-income families (see footnote to table 1).




8
the quality of goods available to civilians throughout the world.
Some of the types of goods included in the indexes in 1939 could not
be purchased by civilians in the war years; for other types of goods,
only substitutes were available. As far as one can judge from reports
available in the United States, none of the statistical agencies respon­
sible for the computation of these indexes allowed them to decline
when wartime substitutes of lower price and lower quality were intro­
duced into the price series used in their computation. It is generally
reported, however, that all of the increases in costs resulting from
wartime deterioration in quality were not reflected in any of the
indexes, because of the lack of statistical measurements of quality
change.
T able 1.— Indexes o f Retail Prices (Living Costs) in Various Countries, August 1 9 3 9 J u ly 1945 1
[August 1939=100]

Month

Argen­
New
tina
Zealand (Buenos
Aires)

Ger­
many

Canada

Aus­
tralia

United
King­
dom

Japan

Sweden Switzer­
land

Number of items
included *.... .......

221

110

156

170

1939: August..........
December___
1940: August..........
1941: January.........
December___

•100.0
102.2
104.7
105.4
110.6

U00.0
105.7
102.6
100.6
111.7

100.0
99.3
104.6
103.3
104.5

100.0
103.0
105.1
107.4
114.9

100.0
101.1
104.7
108.6
112.4

100.0
111.6
119.4
126.5
129.7

100.0
106.7
122.4
7118.7
122.5

<100.0

1942: January.........
February___
March...........
April_______
M ay..............
June..............
Ju ly._...........
August..........
September
October.........
November.
December___

110.1
108.5
108.3
108.9
110.3
110.4
110.7
112.4
113.0
113.5
114.3
113.4

109.6
110.4
112.1
112.0
111.6
112.7
111.5
110.7
111.6
112.0
111.4
112.4

104.9
106.4
106.8
107.3
108.0
109.1
110.3

00
OO
115.1

129.0
129.0
129.0
128.4
129.0
128.4
129.0
129.7
129.0
129.0
129.0
129.0

123.8
123.4
124.0
125.0
125.7
125.3
126.1
126.1
126.3
126.2
126.2
127.3

134.3

106.2
105.9
106.2
106.7

114.5
114.8
115.0
115.0
115.2
115.8
117.0
116.8
116.5
116.9
117.7
117.9

1943: January.........
February___
March______
April.............
M ay..............
June..............
July...............
August..........
September...
October.........
N ovem ber...
December___

(8)
(8)
114.6
(8)

114.8
114.4
120.3
118.8
118.5
115.9
106.5
107.0
107.9
108.1
110.2
109.5

107.4
107.9
108.1
108.4
108.8
109.5
111.2
111.1
108.3
108.0
108.6
108.8

116.2
116.0
116.3
116.7
117.2
137.6
117.9
118.3
118.5
118.4
118.5
118.4

128.4
128.4
128.4
127.7
128.4
127.7
129.0
128.4
127.7
128.4
128.4
128.4

127.9
129.8
130.9
133.9
134.7
135.8
136.3
136.3
136.7
136.7
138.9
139.8

140.7
(8)
141.7
(8)

109.7
108.2
110.7
108.5
109.0
109.5
111.3
106.5
110.2
112.1
110.9
115.3

109.4
109.7
110.1
111.0
110.1
111.5
117.0
117.8
110.0
108.8
109.1
109.4

118.1
118.0
118.1
118.2
118.3
118.1
118.1
118.0
117.9
117.7
118.0
117.6

128.4
129.0
129.0
129.0
129.0
129.0
129.7
130.3
130.3
129.7
129.7
129.7

141.3
142.5

121.2
123.3
132.5
(8)
(8)
(8)
(8)

110.0
110.3
111.0
111.4
(8)

117.7
117.7
117.8
117.8
118.1
118.7
119.3

1944: January_____
February___
March...........
April.............
M ay..............
June..............
July...............
August..........
September...
October.........
N ovem ber...
December___
1945: January_____
February___
March...........
April..............
M ay..............
June..............
J u ly .............

(8)

113.4
(8)
(8)

112.9
(8)
(8)

113.5
(8)
(8)

113.9
(8)
(8)

113.5
(8)
(8)
113.7
(8)
(8)
113.8
(8)
(8)

114.1
(*)
(8)

113.9
(8)

See footnotes at end of table.




114

(8)

00
00

147

00

(8)

00
118.1
(8)
00
120.8
00
00
122.5
(8)
(8)

122.6
(8)

00

124.9

00
00

123.8
(8)

00

122.6
(8)

(8)
122.8

00

(8)

122.9
(8)

00

123.3

00

(8)
123.0

00

(8)

122.6
(8)
(8)
122.9
(8)

70

130.3
130.3
130.3
130.3
131.0
131.6
133.5

(8)

•114.8
121.5
•130.6
(8)

(8)
138.0
(8)
(8)

139.8
(8)

(8)
140.7
(8)
(8)

(8)

140.7
(8)
(8)

139.8
(8)
(8)

140.7

<8)
100.0
103.6
110.2
119.0
134.3
135.8
137.2
138.0
139.4
140.1
140.9
143.1
142.3
142.3
143.8
145.3
146.0
146.7
146.7
146.7
148.2
148.2
148.2
148.9
148.9
148.9
149.6
149.6
149.6

(8)
(8)

150.4
150.4
150.4
151.1
151.1
151.8
152.6
151.8
151.8
151.8
151.8
151.8

(8)

(8)

(8)

(8)
139.8
(8)
(8)
139.8
(8)

152.6
152.6
152.6
152.6
153.3
153.3
(8)

(8)
(8)

(8)
(8)
(8)
(8)
(8)
(8)
(8)
(8)

(8)
(8)
(8)
(8)
(8)

139.8
(8)
(8)
139.8
(8)
(8)
140.7
(8)
(8)
139.8

9
T able 1.— Indexes o f Retail Prices (Living Costs) in Various Countries, August 1 9 3 9 J u fy 1945 1— Continued
[August 1939-100]
Den­
mark

Brazil Mexico
Norway (Rio de (City of
Janeiro) Mexico)

Chile
(Santi­
ago)

Pales­
tine

Bolivia
(La Paz)

Iran

China
(Chung­
king)

Number of items
included2............

(8)

170

144

23

31

(8)

56

1939; August..........
December___
1940: August..........
1941: January........
December___

<100.0
•103.7
•127.1
141.1
•151.4

100.0
106.0
115.9
130.9
142.6

•100.0
101.5
105.2
108.8
120.5

100.0
99.6
99.1
101.0
115.1

100.0
105.6
115.6
116.5
142.5

(8)
(8)
(8)
(8)
(8)

100.0
115.5
124.9
135.0
182.5

100.0
102.6
111.8
122.8
189.1

» 204.0
282.0
652.0
1230.0
2930.0

1942: January........
February___
March...........
April.............
M ay..............
June..............
July...............
August..........
September...
October.........
November.. .
December___

151.4
(8)
(8)
150.5
(8)
154.2
(8)
4(8)
155.1
(8)
(8)

143.2
143.6
144.0
144.6
145.6
146.1
146.6
146.6
146.3
(•)
(8)
(8)

124.0
124.2
124.2
123.7
124.4
127.2
129.1
127.0
135.2
137.3
139.7
141.1

113.7
112.7
115.1
118.8
120.2
120.9
120.6
120.5
125.3
125.3
127.9
127.8

144.0
146.9
154.0
159.8
163.3
162.2
162.7
168.8
171.7
177.6
177.4
179.1

175.0
182.0
186.0
186.0
184.0
185.0
186.0
197.0
202.0
205.0
209.0
211.0

186.9
198.7
197.3
198.7
202.0
202.7
204.7
204.7
205.4
208.1
233.3
236.0

203.9
215.4
222.9
240.7
245.7
251.5
261.3
264.9
278.3
297.0
341.1
385.0

2970.0
3080.0
3350.0
3870.0
4340.0
4310.0
4660.0
4940.0
5220.0
5570.0
6090.0
6290.0

1943: January........
February___
March...........
April.............
M ay..............
Ju n e............
July...............
August..........
September...
October.........
November...
December___

156.1
(8)
(8)
156.1
(8)
(8)
154.2
(8)
(8)
156.1
(8)
(8)

147.8
148.0
148.4
148.9
149.2
149.4
149.9
150.0
149.4
149.5
149.9
150.2

140.9
141.2
141.4
140.8
141.0
141.1
142.9
146.7
149.0
147.1
147.2
147.6

130.9
136.8
140.6
148.0
158.8
160.1
165.6
168.4
169.6
170.5
173.1
174.7

176.5
179.4
181.1
189.0
193.2
196.5
193.9
194.3
196.4
198.1
196.5
193.4

215.0
219.0
218.0
226.0
240.0
248.0
247.0
243.0
243.0
239.0
230.0
230.0

238.7
250.8
248.5
248.5
254.2
256.2
258.2
255.6
254.5
254.9
255.6
255.9

435.7
503.6
552.4
670.7
645.8
620.3
650.8
695.5
704.8
731.7
758.0
763.7

6780.0
7890.0
7970.0
8170.0
9510.0
10900.0
11800.0
13700.0
14400.0
15500.0
17200.0
18300.0

1944: January.........
February___
March...........
April_______
M ay..............
June..............
July..... .........
August..........
September...
October.........
N ovem ber... .
December___

156.1
(8)
(8)
157.0
(8)
(8)
157.0
(•)
(8)
157.9
(8)
(8)

150.3
150.5
150.7
150.9
151.1
151.3
151.4
151.6
151.2
151.1.
151.2
151.5

150.8
151.3
152.1
153.3
156.6
156.6
162.4
162.8
163.8
164.8
167.4
168.6

177.7
180.9
186.7
193.3
197.9
202.6
208.5
206.5
209.4
211.9
208.7
200.5

196.4
194.3
198.2
205.6
210.0
209.2
209.3
215.5
226.2
235.0
234.6
222.4

233.0
232.0
236.0
235.0
234.0
238.0
244.0
255.0
249.0
248.0
248.0
252.0

261.6
263.3
273.1
273.7
266.3
266.7
267.0
267.0
267.0
273.7
275.4
275.4

761.5
768.0
770.0
786.4
797.7
796.3
780.7
795.6
777.1
(8)
(8)

19200.0
22200.0
28900.0
33600.0
40700.0
44500.0
45700.0
43300.0
44500.0
45300.0
49300.0
52800.0

1945: January........
February___
March...........
April.............
M ay............
June..............
July...............

157.9

151.6
151.7
151.9
153.8
153.9
154.4
154.6

169.0
183.1
183.3
183.1
(8)
(8)
(8)

201.3
201.7
202.3
205.0
206.9
209.1
213.8

221.4
222.8
224.0
226.8
227.6
229.8
(8)

254.0
253.0
258.0
257.0
257.0
(8)
(8)

276.4
276.4
277.4
274.1

(8))
(8

33

Month

(8)
(8)
(8)

(8)

(8)

(8)
158.9
(8)
(8)
158.9

(8)

(8)

(8)
(8)

(8)

48

63300.0
86200.0
110500.0
127500.0
•144700.0
(8)
(8)

1These indexes show changes in retail prices and rents in cities. In general they are similar in construc­
tion and design to the index of consumer prices to moderate-income families in large cities prepared by the
U. S. Bureau of Labor Statistics, although different methods are used to collect the prices in different coun­
tries, and most indexes do not cover as many items as the United States index. The indexes given for Aus­
tralian and New Zealand cities are weighted by the per capita consumption of the general population of
the country, and are called retail-price indexes; those for Chungking represent changes in prices for goods
purchased by all economic groups in the city’s population; those for Rio de Janeiro represent changes in
prices to “ middle income” families except that there is included in the index of food prices a second
Brazilian food index, which presents changes in food prices paid by families of wage earmers in that city.
The food-cost index for middle-income families in Rio de Janeiro has risen less than that for wage earners’
families. None of these indexes measures increases in living costs caused by moving to war production
centers, the employment of wives in war plants, being “ bombed out,” or other wartime costs not connected
with price changes, except that the indexes for Sweden and Denmark include increases in income taxes.
None of these indexes fully reflect increases in costs caused by quality deterioriation of consumers’ goods
in the war period, because of the fact that in no country are statistical measurements of the quality of such
goods available.
2 The number of items given represents the types of goods and services priced, and not the number of
grades or qualities priced for a given item. The entry applies to the most recent date for which information
is available.
3 The series given represents a combination of indexes with different weighting, prepared in different
periods of time for overlapping dates.
•July 1939 prices=100.
3 Figure relates to October.
•Figure relates to July.
7Figure relates to February.
3Not available.
‘ “ Prewar” prices =*100.
30July 1936-June 1937 prices-<100. •Third week in May.




10
W HOLESALE-PRICE INDEXES

Indexes of prices in primary markets since the beginning of the war
period are available in the United States for 16 major foreign coun­
tries.3 In general, these indexes show greater increases since August
1939 than the indexes of changes in retail prices to wage earners
and clerical workers. This difference in the rate of rise is explained
in part by the greater stability of retail prices at all times, and in part
by the application of subsidies to essential consumer goods (notably
foods) which bulk large in the retail-price indexes but which represent
T able 2.— Indexes o f Wholesale Prices in Various Countries,
August 1 9 3 9 -J u ly, 1 9 4 5 1
[August 1939=100]
Month

New Zea­ Argentina Germany Canada Australia United
land
Kingdom

Japan

China

1939: August.............
December........
1940: August.............
1941: January...........
December........

100.0
102.9
113.0
117.5
127.0

100.0
118.3
119.3
121.5
164.9

100.0
100.5
103.5
104.0
<105.3

100.0
113.0
114.4
117.0
129.5

*100.0
106.2
116.1
116.7
122.2

100.0
123.2
142.8
152.4
158.9

100.0
107.5
109.6
111.5
189.0

*225.0
316.0
698.0
1170.0
2760.0

1942: January...........
February.........
March..............
April................
M «y .................
June.................
July.................
August.............
September.......
October...........
November.......
December........

125.6
124.7
125.2
125.3
130.3
133.2
134.3
134.0
134.7
134.3
136.0
136.3

170.1
172.6
174.0
177.9
181.7
183.2
185.7
188.1
188.3
189.0
190.8
187.1

106.2
105.9
106.1
105.8
107.1
106.7
107.1
107.5
107.4
107.2
107.7

130.4
130.8
131.5
131.4
131.7
132.5
132.9
132.2
132.8
132.9
134.3
134.2

123.0
124.4
125.3
127.6
133.4
136.5
136.3
137.6
138.6
137.4
137.2
137.8

159.4
161.6
161.9
162.7
163.6
162.7
163.1
161.9
162.0
163.0
164.0
164.4

120.7
121.0
121.0
122.4
122.8
122.9
123.1
123.8
123.8
124.1
124.2
124.6

3010.0
3300.0
3670.0
4100.0
4440.0
4810.0
5170.0
6060.0
6730.0
7370.0
7760.0
8010.0

1943: January...........
February.........
March..............
April................
M ay.................
June.................
July.................
August............
September.......
O ctober..........
November.......
December........

134.9
135.8
136.2
139.1
140.4
141.0
140.4
140.4
140.2
141.3
143.8
144.4

191.2
193.9
194.4
195.6
197.3
198.6
198.3
198.6
197.3
197.5
197.2
198.1

108.2
108.3
108.3
108.3
108.2
108.4
109.2
109.2
108.6
108.5
108.6
108.8

134.3
134.9
136.2
136.8
137.2
137.6
138.5
138.9
140.0
140.9
141.6
141.8

135.7
137.0
138.9
139.3
139.5
141.2
141.5
140.5
141.0
140.3
139.6
139.6

165.2
165.2
165.3
166.0
166.5
166.3
167.2
165.3
166.1
165.6
165.8
166.6

126.4
126.7
127.9
129.4
129.4
129.8
130.9
131.1
131.3
132.1
132.3
132.5

8490.0
9230.0
9530.0
10000.0
11200.0
12700.0
14500.0
16400.0
17900.0
18900.0
20800.0
22m 0

1944: January...........
February.........
March..............
April................
M ay.................
June.................
July..................
August.............
September.......
October............
November.......
December........

144.5
144.6
143.8
143.7
144.4
144.4
144.5
143.7
143.8
143.8
145.2
145.5

199.4
200.9
200.3
202.7
204.5
206.7
207.2
208.3
207.9
207.6
208.5
209.8

108.9
108.8
109.4
109.8
110.0
110.0
111.0
111.0
110.0
110.0
111.0
110.3

141.8
142.0
142.5
142.3
141.8
141.8
141.8
141.5
141.5
141.6
141.6
141.8

139.9
139.3
139.4
140.4
140.5
141.5
141.8
141.6
140.7
140.4
140.5
140.5

167.2
167.8
168.1
168.7
169.3
169.3
170.3
170.7
170.3
169.9
170.1
170.4

132.5
133.8
134.5
134.9
135.2
136.4
(*)
(*)
(*)
(*)
(5)
(•)

24200.0
27300.0
33700.0
37700.0
42500.0
46800.0
49300 0
49400.0
52600.0
55700.0
58400.0
64800.0

1945: January...........
February.........
March..............
April................
M ay.................
June.................
July.................

144.9
145.8
145.5
146.6
145.8

210.5
211.1
211.4
212.4
211.5
211.4

111.0
110.8

142.2
142.3
142.5
143.0
142.5
142.7

140.2
141.0
141.5
142.6
141.6
142.3

(«)

(s)

170.4
170.4
171.0
170.9
171.7
173.4
174.1

(®)
(*)
(*)
(«)
(*)
(5)
(®)

(*>
(«)

(8)

(«)

(•)
(»)
(•)
(4)
(#)

76200.0
96300.0
127500.0
159200.0
(»)
(•)
(*)

See footnotes at end of table.
* Methods of collecting wholesale prices, and of weighting and computing the indexes differ from country
to country, and the indexes are therefore not entirely comparable. The number of commodities covered
(where available) indicates roughly the character of each index.




11
T able 2.— Indexes o f Wholesale Prices in Various Countries,
August 1 9 3 9 -J u ly, 1 9 4 5 1— Continued
[August 1939-100]
Den­
mark

Sweden

Switzer­
land

1939: August............
December........
1940: August.............
1941: January...........
D ecem ber.....

100.0
118.9
131.5
145.9
161.3

100.0
116.5
135.6
154.9
185.1

100.0
128.8
153.2
173.0
189.2

100.0
118.2
138.2
149.9
172.8

100.0
97.4
98.7
99.3
109.0

100.0
108.0
112.9
113.7
155.S

100.0
124.6
135.2
155.2
227.6

100.0
110.0
107.7
127.1
177.6

1942: January...........
February.........
March..............
April................
M ay.................
June.................
July.................
August.............
September.......
October............
November.......
December........

164.0
164.9
165.8
167.6
168.5
169.4
173.9
173.0
173.0
173.9
175.7
175.7

187.7
190.5
192.1
193.3
194.7
194.9
197.5
196.7
197.1
197.3
198.8
(«)

190.1
191.0
191.0
191.0
191.0
191.9
191.9
192.8
192.8
192.8
192.8
193.7

173.0
173.4
173.8
173.9
174.3
175.1
175.2
175.7
175.8
176.8
(*)
to

109.8
111.2
112.5
114.3
116.6
114.9
117.0
114.0
114.7
115.2
118.0
120.3

159.5
160.7
164.4
168.8
171.9
176.7
185.1
188.6
188.9
189.0
188.4
191.4

233.7
258.9
273.2
262.3
248.4
246.9
254.5
275.1
286.6
298.4
303.1
304.6

202.3
204.1
212.2
217.8
232.7
240.4
238.9
240.2
247.6
275.8
343.9
370.7

1943: January...........
February.........
March..............
April................
May—— .........
June.................
July.................
August.............
September.......
October............
November.......
December........

176.6
177.5
177.5
177.5
177.5
177.5
176.6
175.7
175.7
175.7
175.7
175.7

200.3
201.7
202.1
202.7
202.9
203.1
202.7
202.5
204.1
204.9
204.8
204.7

192.8
192.8
192.8
192.8
192.8
192.8
192.8
192.8
193.7
193.7
193.7
193.7

176.9
177.1
177.3
177.4
178.0
178.0
178.3
178.0
177.8
177.8
178.2
178.4

121.4
128.7
130.0
133.8
140.7
143.7
145.0
146.0
148.6
149.2
152.7
155.5

193.2
194.0
195.4
195.5
197.2
198.6
199.0
196.0
197.1
195.9
195.9
194.6

306.1
316.3
319.4
327.0
328.3
338.1
338.5
339.4
329.6
334.6
340.0
342.7

414.3
460.8
467.3
495.5
429.7
422.3
438.0
448.4
483.6
500.0
486.5
497.0

1944: January...........
February.........
March.............
April................
May.................
June.................
July.................
August............
September.......
October...........
November.......
December........

175.7
175.7
175.7
175.7
177.5
177.5
178.4
177.5
176.6
175.7
175.7
175.7

205.2
206.0
207.3
207.6
207.9
207.9
208.4
208.0
207.3
207.2
206.7
206.0

193.7
194.6
194.6
194.6
194.6
195.5
195.5
195.5
196.4
196.4
197.3
197.3

178.4
178.5
178.5
178.6
179.1
180.0
180.1
180.3
180.0
180.1
180.1
180.4

154.2
157.4
163.7
174.5
180.2
181.6
181.7
181.3
181.2
183.0
186.1
184.3

191.8
193.1
193.1
194.2
194.6
199.0
204.5
209.1
210.8
211.6
214.9
212.5

341.6
337.8
342.9
350.1
338.1
333.4
338.0
355.9
358.7
362.7
366.7
353.9

499.3
494.8
494.0
533.6
528.4
513.5
516.4
535.1
506.7

1945: January...........
February.........
March............
April................
M ay.................
June.................
July.................

175.7
175.7
176.6
176.6
176.6
177.5
<*>

205.6
205.6
205.6
205.9
206.0
206.3
(«)

197.3
197.3
198.2
197.3
197.3
191.9
191.0

180.5
180.5
180.6
181.0
181.1
181.5
180.7

180.6
178.6
183.0
186.5
187.9
187.6
193.3

209.1
219.2
210.9
211.8
212.7

355.2
(•)
(*)
to
to

Month

Norway

Mexico

Chile

to
to

Palestine

to

(*)

Iran

to
to
to
to
to
to
to
to

to

to

1 These indexes are based on prices paid for goods sold in primary markets, weighted in accordance with
their relative importance in the countries concerned. The number and kind of items covered, the method
of collecting prices, and the method of computing the indexes differ from country to country.
2 The series given represents a combination of indexes with different weighting, prepared in different
periods of time for overlapping dates.
3 July 1937-June 1937 prices=100.
* August 1941.
*Not available.

a relatively small part of the commodity coverage in the wholesaleprice indexes. The wholesale-price index for New Zealand shows an
increase of almost 46 percent over 1939, as compared with an in­
crease of 14.1 percent in the retail-price index. In the United
Kingdom between August 1939 and June 1945, the cost-of-living in­
dex rose 31.6 percent, but the wholesale-price index advanced 73.4
percent. In Iran the wholesale-price index shows that in September




12
1944 prices in primary markets were five times those prevailing in
1939, whereas retail prices to the average worker were almost eight
times what they paid in 1939. The difference may in part have been
due to the presence in the country of large numbers of members of
the armed forces of the United States, the United Kingdom, and the
Soviet Union, who had greatly increased the demand for consumers1
goods.
INDEXES OF FOOD AND CLOTHING PRICES

In the majority of the countries for which price indexes are available,
the indexes of retail food prices have risen more than indexes of total
living costs. In part, this is due to the fact that in most countries
rents have been controlled at or near 1939 levels, and this has kept the
cost-of-living indexes below the level of all other group indexes. In
Chungking, China, to take the extreme case, the Nankai Institute
cost-of-living index in April 1945 stood at 127500 as compared with
100 in July 1936-June 1937. Excluding rent, it stood at 145700
and excluding rent and rice, at 160000. In countries where any con­
sumers’ goods have been subsidized, the largest subsidies have been
applied to basic food materials, wheat flour, milk, meat, in some
countries vegetables, and (in countries largely dependent on that
cereal) rice. In some countries where imported foods are important,
the government has taken over the responsibility for food imports, and
has resold such imports to distributors at subsidized prices. In the case
of locally produced foods, subsidies have sometimes been given in the
form of direct incentive payments to farmers and have sometimes been
introduced at the processors’ level. In Canada, as in the United
States, although food prices have been subsidized to some extent, they
have risen more than the average for all retail prices to moderateincome city consumers. The indexes for Switzerland, Chile, Bolivia,
Iran, and Japan also show food prices in recent months higher than
the cost-of-living index.
Increases in prices of selected foods in 7 countries where conditions
vary widely are shown in table 3. In Australia, Canada, and the
United Kingdom, increases have not been extreme. In Australia,
incentive payments for locally grown vegetables have gone so far
that prices for potatoes and onions were lower in 1944 than in 1939.
In Switzerland, which is normally a large importer of food, price
increases have been larger, but they have not approached those in
southern Europe where the disorganization of food markets has been
extreme. Increases in food prices in Greece have been higher than
in any other country for which there are data on the prices of individual
foods. (Such figures are not available for China.) Shortages in
Greece during the German occupation and in the first months after
liberation were so great that the death rate reached very high levels.
The distribution of available food supplies was complicated by the
large amount of currency in circulation as well as by the unsettled
conditions which followed the withdrawal of German forces. An
announcement in June 1945 by the Governor of the Bank of Greece,
who is now Deputy Prime Minister and Minister of Supply, stated
that the Government had taken over control of all supplies of con­
sumers’ goods and of the currency. The value of the drachma was set
at 500 drachmas to the dollar, as compared with about 125 drachmas
to the dollar before the war. The announcement stated that part of




13
the large increase in food prices which had occurred in May was due to
hoarding and speculation, and that prices for foods imported from
abroad had been reduced to levels prevailing in the last week of April.
It went on to say—
We will also make efforts to reduce the prices of products locally produced by
controlling production costs and transportation expenses. Such a control will at
first be applied on commodities of prime necessity, and gradually extended to all
products produced locally.
The following are considered articles of prime
necessity: Olive oil, soap, vegetables, currants, cheese, meat, and salt.
The ships carrying the Allied assistance are already arriving. The supplies will
be distributed immediately, and will permit the public to cover satisfactorily the
more urgent of its needs. Do not turn to the open market for your supplies, save
only when this cannot be postponed.
T able 3.— W artim e Changes in Prices o f Selected Foods in Seven Foreign Countries
Australia
(Mel­
bourne)

Canada
(64 cities)

Item

United
Kingdom Switzerland
Belgium1
(over 500 (34 cities)
cities and
villages)

Italy
(Rome) *

Greece
(Athens)J

Aug. 1939- Aug. 1939- Sept. 1939— July 1939- April 1940- Sept. 1942- Average
1939Dec. 1944 May 1945 June 1945 Feb. 1945 June 1945 Jan. 1945 May
1945
Percent of change in period specified
Bread..................
Potatoes..............
Rice.....................
Milk....................
Butter.................
Onions............. —
Beef................... .
Pork...................
Sugar............ —
Coffee................ .
Tea......................

+3
-5 4
+4
+1
+5
-3 9
+49
+33
0
(8)
+1

+6
+44
(*)
-5
+45
+6
7+68
+42
+32
+31
+32

+9
+46
(*)
+32
+31
(8)
*+27
•+50
+32

(8)

+21

+24

(8)

+165
+21
+58

(8)

+75
+104
+114
+58
+115

+149
+370
+455

4+92
+988
8+843
+669

+560
+561

(t>1267

8
+113
8

+1,596
+4,174
+5,391
+1,567
+2,184
+242
+1,414
+1,100
+7,221
+2,926
+638

i
Number of cities not specified. Official and black-market prices combined by estimated actual con­
sumption.
* Official prices.
* Data from consular report from the U. S. Embassy in Athens, prepared by J. Enepekides, June 5,1945.
4Pasta (spaghetti, macaroni, etc.) increased 125 percent during this period.
*Price data not available.
eIncrease from September 1942 to July 1944.
i The figure is for stewing beef; price of sirloin steak rose 54 percent.
*The figure is for thin flank; price of ribs rose 11 percent.
* The figure is for bacon.
Estimated on the assumption that the relation between pork and beef prices was the same in May as in
January 1945.

Indexes of clothing prices for all the countries for which data have
been obtained have risen higher (and in some cases much higher) than
indexes for food prices. The necessities of war have forced the peoples
of most countries to go without clothing replacements to a very large
extent since 1939. The only country with a marked decline in cloth­
ing costs from the peak wartime level was the United Kingdom where
the index of retail clothing prices almost doubled from August 1939
to March 1942, remained unchanged for 6 months, and then declined
to and remained stable at a point about two-thirds above the 1939
level. The decline was brought about by the Government’s “ utility
clothing” program. This program provided durable low-cost clothing
in standardized models, through allocations of raw materials to pro­
ducers making goods meeting the Government’s regulations on this
subject. At last reports, 85 percent of the clothing being produced
576567°—46----- 3




14
in the United Kingdom met the specifications set for the “ utility”
models. In Sweden there was a small decline in clothing prices in
November 1942 when prices of certain essentials were reduced by
Government order, and further small decreases were accomplished in
the next 2 years, so that the level of the Swedish index of retail clothing
prices stood at 163 in March 1945 as compared with 171 in October
1942, a decline of about 4 percent.
T able 4.— Indexes o f Retail Prices o f Food and Clothing Since August 1939, Compared
with Cost-Of-Living Indexes, in Selected Foreign Countries
[Allgust 1939=100]
Indexes, in months specified, of—
Country

Month and year
Food

New Zealand................................ ..........................
Germany__________________________________ __
Canada...................................................................
Australia.................................................................
United Kingdom.................. .................................
Japan......................................................................

December 1942 U
April 1944...........
May 194ft
March 194ft...
July 1945............
February 1944—

108
111
133
113
129
145

Sweden...................................... .............................
Switzerland ________________________________
Denmark____________ _______ ______________
Norway.................................... .............. ..............
Mexico______________________________________
Chile........... .............. ........... .................................

June 1945........ .
February 1945—
April 1945..........
December 1944._
May 194ft
April 1945...........

Bolivia___________________ _______ ___ ______
Iran_____________ __________ _______ „________
Argentina. ...................................................... ........
Brazil.................. ..................................................
China.................................. ....................................
Belgium__________ ____ _________________ _

April 1945..........
September 1944..
March 1945____
November 1944._
April 1945 1
3*6
2
____
June 1945 ® . . __

Clothing

Cost of
living

168
156

113
111
118
123
134
143

138
165
157
153
196
233

163
209
189
195
251
294

143
153
159
152
207
227

287
828
141
<187
141.100
519

302
984
127
217
182,100

274
777
132
167
127,500

(’)
00

137
122

1 Based on an index of retail prices. When the new wartime index of living costs was initiated in New
Zealand, it was published without giving the component group indexes.
2 In 1939 the New Zealand index combined clothing and furniture prices in 1 group index.
3 In 1939 clothing was combined with miscellaneous items in the Australian index.
♦The index for Brazil (Rio de 3aneiro) is based on goods purchased by moderate-income families. The
index of food prices to wage earners for this city for November 1944 is 226, when August 1939 is taken as 100.
« Index is based on July 1936-June 1937=100.
6Index is based on April 1940=100. This is the only price index at present available for Belgium.




15
T able 5.— Indexes o f Food Prices in Various Countries, August 1 93 9 -J u ly 1945 1
[August 1939=100]

Month

New
Zealand

Number of items
included2______
1939: August_____
December___

Argen­
tina

Ger­
many

Canada

72

37

45

100.0
104.2

«100.0
107.4

100.0
98.3

100.0
105.4

Aus­
tralia

United
King­
dom

Sweden Switzer­
land

Japan

,
100.0
99.3

100.0
114.6

42

100.0
109.9

4100.0
* 102.6

100.0
105.3

1940: August_____

100.9

100.8

106.5

106.1

101.9

119.7

131.4

6116.7

111.5

1941: January____
December__

101.5
109.4

99.3
116.3

101.8
101.1

110.5
124.7

106.2
104.4

125.5
120.4

7120.3
122.8

122.8
»130.1

122.1
144.3

1942: January____
February___
March______
April.............
M ay..............
June..............
July________
August_____
September...
October_____
November. __
December___

108.1
102.9
102.5
103.9
104.3
104.5
105.2
106.7
108.4
109.7
110.7
108.4

112.7
113.5
117.2
117.2
116.8
118.4
116.1
114.7
115.8
116.6
115.3
117.2

101.7
104.1
104.9
105.5
106.9
108.9
111.0
(8)
103.1
102.6
103.0
103.6

123.2
124.0
124.6
124.6
125.2
127.1
131.2
130.5
129.4
130.7
133.3
133.7

106.1
108.0
109.7
111.0
111.0
112.8
114.4
115.4
115.1
114.8
114.7
114.1

119.0
119.0
118.2
116.8
116.8
116.1
116.8
116.8
116.8
118.2
119.0
119.7

124.0
123.0
123.6
124.8
125.5
124.0
125.2
125.0
124.9
124.1
123.7
125.6

136.8
(•)
(8)
141.2
(8)
(8)
143.0
(8)
(8)
143.0
0
0

145.8
148.1
148.9
150.4
151.9
151.9
155.0
154.2
155.0
155.7
157.3
158.8

1943: January........
February___
March...........
April.............
M ay.............
June_______
July........... .
August_____
September...
October____
November.. .
December___

(8)
0
(8)
(8)
(8)
(8)
(8)
(8)
(8)
(8)
(8)
0

117.5
116.6
126.5
122.1
121.4
116.3
112.0
112.9
114.5
114.9
118.7
117.5

105.0
105.9
106.2
106.7
107.5
108.8
111.8
111.5
106.3
105.6
106.6
107.0

128.2
127.6
128.6
129.6
130.8
131.8
132.7
134.1
134.4
133.8
134.0
133.6

112.2
112.8
114.9
115.3
115.1
115.4
115.8
111.8
111.1
111.1
110.5
110.3

119.7
119.7
120.4
120.4
120.4
120.4
122.6
121.9
121.2
122.6
122.6
122.6

126.5
130.6
130.7
136.2
137.2
137.7
138.3
139.0
137.9
136.6
140.6
141.6

141.2
0
142.1
0
0
141.2
0
( 0)
139.5
0
0
140.4

159.5
• 159.5
160.3
160.3
160.3
161.1
161.1
161.1
161.8
161.8
162.6
162.6

1944: January........
February___
March______
April.............
M ay.......... .
June_______
July..............
August_____
September...
October........
November...
December___

(8)
(8)

117.8
114.8
119.3
115.1
116.1
116.1
119.5
114.4
118.3
122.0
119.7
124.1

107.9
108.2
109.0
110.6
110.1
111.5
117.0
114.8
110.0
108.8
109.1
109.4

132.4
131.8
132.0
132.4
132.6
132.0
132.9
132.4
132.1
131.7
132.5
131.2

111.1
111.0
111.2
111.1
111.3
112.8
113.3
113.2
112.1
111.9
111.1
111.0

122.6
122.6
122.6
122.6
122.6
122.6
123.4
124.1
123.4
122.6
122.6
122.6

144.6
145.2

0
0
139.5
0
0
139.5
0
0
141.2
0
0
138.6

162.6
163.4
163.4
164.1
164.1
164.9
165.6
164.9
164.1
164.1
164.1
164.1

121.6
123.8
141.6
141.9
143.0
143.2
146.6

110.0
110.3
111.0
111.4
0

131.1
131.5
131.9
131.9
132.6
134.3
136.6

111.7
111.7
112.6
112.8
112.8

122.6
122.6
122.6
122.6
122.6
124.1
128.5

0
0
139.5
0
0
137.7
0

164.9
164.9
164.9
164.9
164.9
165.6
165.6

1945: January____
February___
M arch .........
April.............
M a y ............
June..............
July..............

(8)
(8)

(8)
(8)
(8)
(8)
(8)
(8)
(8)
(8)
(8)
(8)
(8)
(8)

0
(8)
(8)

See footnotes at eiid of tabic).




(8)
(8)

(8)
(8)

(8)
(8)

(8)
(8
)
(8)
0
0
(8)
(8)
(8)
(8)

0
(8)
(8)
(8)
(8)
(8)

16
T able 5.— Indexes oj Food Prices in Various Countries, August 1 93 9 -Ju ly 1945 1— Con.

Brazil72 Brazli73 Mexico
(Rio de (Rio de )C-ity of
Janeire) Janeiro) Mexico)

Chile
(San­
tiago)

China
(Chung
king)

(Den­
mark

Nor­
way 9

51

19

12

26

32

1939: August-------December-..

4100.0
«103. 7

100.0
108.2

79100.0

•100.0
105.3

100.0
96.8

100.0
110.8

100.0
116.2

1940: August--------

6 119.4

120.2

106.7

98.2

96.2

119.2

124.7

113.1

611.0

1941: January........
December__

145.4
(8)

(89
)
3
2
*1
(8)

109.5
114.5

102.7
108.0

98.0
108.3

115.7
152.5

144.1
208.1

128.2
216.4

1330.0
3240.0

1942: January........
February___
March..........
April.............
M a y ............
Ju n e............
July________
August_____
September...
October____
November...
December ...

(*)
(8)
00
155.6

(8)
(8)
<8)
(8)

117.7
117.7
117.7
117. 7
117.7
117.7
118.6
115.9
117.7
121.2
122.1
123.9

108.1
107.0
109.3
112.0
114.7
113.6
112.9
113.0
118.1
118.0
119.1
118.9

153.8
156.8
163.4
168.8
175.0
172.7
173.7
185.5
191.9
201.7
196.9
200.2

216.6
217.4
212.1
214.6
222.7
223.9
227.9
228.7
228.7
232.8
245.7
246.6

232.9
249.7
259.9
282.2
283.4
284.2
290.8
293.1
309.7
339.6
403.0
460.3

3110.0
3150.0
3320.0
3920.0
4460.0
4090.0
4290.0
4450.0
4630.0
4930.0
5430.0
5410.0

1943: January........
February----March..........
April.............
M ay.............
June.............
J u ly ............
August.........
September...
October_____
November...
December—

Month

Number of items
______
included1
23
7
*6
4

Bolivia
(La Paz)

Iran

100.0
103.2

» 149.0
234.0

(8)

(8)

(8)
157.4
(8)
(8)
157.4
(">

(8)
<8)
(8)
(8)
(8)
<«)
(9)

116.1
116.6
116.6
114.7
116.4
123.4
128.2
122.8
143.1
145.9
148.7
148.7

157.4
(•)
(8)
156.5
(8)
(8)
153.7
(«)
(8)
153.7
(8)
(8)

<8)
<8)
<8)
(8)
(8)
<8)
<8)
<8)
(8)
<8)
152.0
152.5

142.5
143.1
143.7
143.3
143.7
144.0
144.7
154.2
160.1
155.9
156.7
157.1

124.8
124.8
124.8
131.0
133.6
131.0
131.0
129.2
135.4
138.1
141.6
153.1

122.0
127.7
131.0
137.0
147.4
148.3
154.9
153.9
154.4
155.8
158.9
160.8

192.9
197.8
200.3
208.8
217.3
222.7
217.4
214.9
218.0
218.3
214.2
208.7

255.9
255.5
248.2
248.2
252. 2
257. 5
261.1
264.8
261.5
261.5
262.3
263.2

545.6
645.4
701.4
849.4
779.9
739.0
773.0
820.8
830.1
854.8
873.4
871.8

5390.0
6960.0
6980.0
7430.0
8800.0
10000.0
10700.0
12700.0
13600.0
14600.0
17100.0
18000.0

1944: January........
February___
March..........
April............
M ay.............
June..............
July. ............
August_____
September...
October_____
Novem ber...
December__

153.7
(8)
(8)
154.6
(8)
(8)
(8)
(8)
(8)
(8)
(8)
00

152.6
152.7
(8)
(8)
153.7
153.9
154.0
154.3
(8)
(8)
(8)
153.4

155.6
156.9
159.3
162.2
170.5
170.4
173.6
174.7
177.3
180.6
187.4
(8)

165.5
179.6
195.6
196.5
191.2
195.6
196.5
197.3
197.3
219.5
225. 7
(8)

164.3
168.0
175.3
183.2
188.6
194.4
201.5
198.8
201.4
203.5
199.0
188.2

213.4
208.8
214.8
216.9
217.4
215.1
213.1
226.0
245.2
262.1
255.1
228.9

272.9
275.7
304.9
305.3
282.6
283.4
283.8
283.8
283.8
298.8
302.8
303.2

866.4
874.9
880.3
893.4
891.9
874.9
862.5
871.8
827.8
693.3
640.9
(8)

19300.0
22700.0
32200.0
37700.0
47200.0
51200.0
50200.0
44500.0
45000.0
43800.0
44900.0
48500.0

1945: January........
February___
March......... .
April.............
M ay.........—
June..............
J u ly ............

(8)

<8)

(8)
(8)
(8)

(»)

(8)
(»)
(8)
(8)

(8)
(8)
(•)
(8)

189.3
189.6
190. 7
193. 6
195.7
(8)
(8)

226.4
228.6
229.7
233.1
(8)
(8)
(8)

294.7
294.7
296.4
287.0
(8)
(8)
(»)

00
(8)
(8)
(8)
(8)
(8)

(8)

(8)
(8)

157.4
(8)
(8)
157.4

(8)

<8)
(8)
(8)
(8)
155.7

(8)
(8)

(8)

63300.0
91600.0
119800.0
141100.0
156000.0
(8)
(8)

1 For explanation of indexes see footnote 1, table 1.
2 The number of items given represents the types of goods and services priced, and not the number of
grades or qualities priced for a given item. The entry applies to the most recent date for which informa­
tion is available.
3 The series given represents a combination of indexes with different weighting prepared in different
periods of time for overlapping dates.
4July 1939 prices=100.
* Figure relates to October.
6Figure relates to July.
7Figure relates to February.
8Not available.
9September 1939 prices=100.
The year 1939=100.
11July 1936-June 1937 prices=100.
12 Index of food as part of the cost-of-living index, prepared monthly by the Statistical Service of Welfare
and Labor of the Ministry of Labor, Industry, and Commerce, for Rio de Janeiro onlv.
13 Index of 19 articles of prime necessity, prepared monthly by the Bureau of Statistics and Publicity;
similar indexes are prepared for numerous other municipalities in all States of Brazil




17
T able 6.— Indexes oj Clothing Prices in Various Countries, August 1 9 3 9 -J u ly 1945 1
[August 1939=100]

Month

New
Zealand2 Argentina Germany Canada

Number of items in­
cluded 3_________
1939: August.............
December____

United
Kingdom

28

31

31

100.0
6100.9

<100.0
112.4

100.0
100.6

100.0
103.2

100.0
118.1

Japan

Sweden Switzer­
(49 cities)
land

19
100.0
107.5

«100.0
7100.9

100.0
102.5

1940: August_______

113.4

112.4

104.9

109.0

139.8

124.9

3121.1

122.5

1941: January-.........
December........

»117.6
6 122.4

112.4
120.5

113.2
124.6

113.6
119.8

159.0
191.6

9128.9
138.9

135.8
7156.9

140.8
165.0

1942: January______
February.........
March..............
April................
M ay...............
June____ ____ _
July__________
August----------September.......
October______
November____
December_____

(10)
124.1
(10)
(10)
126.4
(10)
(10)
131.0
(10)
<“ )
132.9
(10)

120.5
120.5
120.5
120.6
120.6
120.6
120.6
120.6
120.6
120.6
120.6
120.6

125.4
127.1
127.8
128.3
128.7
129.0
129.2
(10)
129.8
130.0
130.8
131.3

119.8
119.7
119.7
119.7
119.8
119.8
119.9
120.0
120.0
120.0
120.0
120.1

192.8
194.0
195.2
195.2
195.2
195.2
195.2
195.2
191.6
188.0
185.5
181.9

139.9
140.2
140.7
141.2
142.0
142.5
143.1
143.1
143.0
143.2
143.3
143.7

159.6
(10)
(10)
164.2
(10)
. (i°)
167.0
(10)
(10)
171.6
(10)
(10)

170.8
170.8
170.8
177.5
177.5
177.5
181.7
181.7
181.7
187.5
187.5
187.5

1943: January...........
February.........
March..............
April.................
M ay............... .
June.................
July......... ........
August_______
September____
October______
November.......
December____

(10)
(10)
(10)
(10)
(10)
(10)
(10)
(10)
(10)
(10)
(10)
(10)

120.6
120.6
120.6
120.6
120.6
119.9
119.9
119.9
119.9
119.9
119.9
119.9

131.7
132.0
132.6
132.6
132.9
133.2
133.5
134.1
134.1
134.1
134.7
134.9

120.1
120.0
120.0
120.1
120.1
120.3
120.4
120.5
120.5
121.0
121.0
121.0

178.3
175.9
173.5
171.1
169.9
168.7
167.5
166.3
166.3
165.1
165.1
165.1

143.9
144.2
147.4
148.9
149.6
150.1
150.8
151.3
152.0
153.1
153.4
153.9

170.6
(10)
168.8
(10)
(10)
168.8
(10)
(10)
164.2
(10)
(10)
163.3

191.7
191.7
191.7
197.5
197.5
197.5
200.0
200.0
200.0
202.5
202.5
202.5

1944: January...... .....
February...... .
March..............
A p ril-.............
M ay............... .
June.................
July------------ —
August.............
September.......
October______
November.......
December____

(10)
(10)
(10)
(10)
(10)
(10)
(10)
(10)
(10)
(10)
(10)
(10)

119.9
119.9
119.9
119.9
119.9
123.8
123.8
111.4
111.4
111.4
111.4
127.4

135.4
135.7
136.0
136.8
137.3
137.3
138.0
138.0
138.5
138.5
138.7
139.4

121.0
121.2
121.2
121.3
121.4
121.4
121.4
121.4
121.4
121.5
121.5
121.5

165.1
165.1
165.1
165.1
166.3
166.3
166.3
166.3
166.3
166.3
167.5
167.5

(10)
(10)
163.3
(10)
(10)
163.3
0°)
(1°)
163.3
(10)
0°)
163.3

204.2
204.2
204.2
205.8
205.8
205.8
206.7
206.7
206.7
208.3
208.3
208.3

1945: January---------February_____
M arch.............
A pril.............
M ay.................
June_________
July..... ............

(10)
(10)
(10)
(10)
(10)
(10)
(10)

127.4
127.4
127.4
127.4
127.4
127.4
127.4

139.9
140.3
140.9
140.9
(m
(10)
(10)

121.7
121.6
121.6
121.7
121.9
122.0
122.1

167.5
167.5
167.5
167.5
167.5
167.5
167.5

154.2
156.4
(10)
(10)
(10)
(10)
(1°)
(1°)
(.0)
(10)
(10)
(10)
(10)
(10)
(10)
(10)
(10)
(10)
(10)

(10)
(10)
163.3
(10)
(10)
163.3
(10)

209.2
209.2
209.2
210.8
210.8
210.8
(10)

See footnotes at endLof table.




18
T able 6.— Indexes o f Clothing Prices in Various Countries, August 1 9 3 9 -J u ly 1945 —
Continued

Month

Denmark Norway

Brazil
(Rio de
Janeiro)

Number of items in­
cluded 1
3_
2
7________
*6
4
1939: August_______
December........

3100.0
7107.3

3100.0
106.1

h

Mexico
(City of
Mexico)

Chile
(San­
tiago)

Bolivia
(La Paz)

Iran

China
(Chung­
king)

36

8

5

8

100.0
(10)

100.0
105.0

100.0
100.7

100.0
109.2

100.0
97.0

i2 378.0
447.0

1940: August.............

®145.9

117.2

103.8

116.4

110.7

124.0

109.3

1090.0

1941: January...........
December........

165.1
(10)

(10)
(10)

105.8
119.2

116.1
131.5

129.7
154.3

135.6
187.0

114.0
176.8

1590.0
3750.0

1942: January..........
February_____
March.............
April................
M ay.................
June.................
J u ly ............. .
A ugust...........
September-----October______
November.......
December........

(10)
(10)
(1C)
174.3
(10)
(10)
178.0
(10)
(10)
180.7
(10)
(10)

(10)
(10)
(10)
(10)
(10)
(10)
0°)
(10)
(10)
(10)
(10)
(10)

121.5
121.5
121.5
121.5
121.5
121.5
121.5
121.5
121.5
121.5
128.8
136.5

131.8
135.6
136.8
150.3
142.6
147.1
148.1
147.4
151.1
148.1
156.7
157.9

157.7
166.1
171.8
174.0
174.0
174.0
174.1
174.1
174.1
174.1
184.2
184.2

192.1
228.4
228.4
228.4
228.4
228.4
228.4
228.4
228.4
232.2
237.7
240.8

204.3
222.6
232.2
249.6
263.3
273.8
275.2
280.6
292.7
292.8
324.6
356.7

4300.0
4460.0
5050.0
5490.0
5780.0
6430.0
7370.0
7880.0
8590.0
8920.0
9830.0
0700.0

1943: January...........
February.........
March_______
April................
M ay................
June.................
July............... .
August............
September.......
October...........
November.......
December____

184.4
(10)
(10)
184.4
(10)
(10)
184.4
(10)
(10)
185.3
(10)
(10)

(10)
(10)
(10)
(10)
(10)
(10)
(10)
(10)
(10)
(10)
191.3
191.6

148.5
148.5
148.5
148.5
148.5
148.5
165.0
165.0
165.0
165.0
165.0
165.0

162.0
171.3
169.4
178.9
190.6
191.6
197.9
209.5
212.2
216.4
217.7
219.6

184.2
184.2
184.2
198.4
198.4
198.4
198.4
198.4
198.4
198.5
203.3
203.3

242.5
277.1
277.1
277.1
292.8
291.8
290.8
276.4
277.4
278.1
279.8
279.8

381.6
441.7
506.5
580.0
626.1
614.2
659.6
498.5
722.8
763.7
786.0
820.3

14700.0
15300.0
15700.0
15900.0
19700.0
23000.0
25800.0
29600.0
29800.0
29800.0
31100.0
33500.0

1944: January...........
February_____
March.......... .
April..............
M ay............... .
June................
July....... .........
August_______
September____
October..........
November____
December____

185.3
(10)
(10)
185.3
(10)
(10)
(10)
(10)
(10)
(10)
(10)
(10)

191.9
192.6
(10)
(10)
193.2
193.3
193.6
193.7
(10)
(10)
(10)
195.0

196.5
196.5
196.5
196.5
196.5
196.5
216.5
216.5
• 216.5
216.5
216.5
(10)

221.3
223.3
225.5
227.2
229.0
230.2
233.6
235.4
237.8
239.7
242.3
244.2

207.4
207.4
207.4
240.5
259.0
259.0
259.0
259.0
264.1
265.7
284.7
290.3

280.8
280.8
280.8
280.8
280.8
280.8
280.8
280.5
280.5
281.2
278.1
278.1

823.6
838.1
854.5
916.4
963.8
984.2
936.8
977.0
984.2
868.3
733.4
(10)

34100.0
39900.0
46200.0
51900.0
62800.0
73200.0
89500.0
90500.0
91800.0
93500.0
94500.0
95900.0

1945: January...........
February.........
M arch............
April................
M ay.................
June................
July*................

(10)
(10)
(10)
189.0
(10)
(10)
192.7

(10)
(10)
(10)
(10)
(10)
(10)
195.4

(10)
(i°)
(10)
(10)
(10)
(10)
(10)

246.3
247.4
247.2
250.1
250.8
(10)
(10)

294.0
294.0
294.0
294.0
(i°)
(10)
(10)

293.8
293.8
294.5
302.4
(10)
(10)
(10)

(10)
0°)
(10)
(10)
(13)
(10)

98800.0
133300.0
165300.0
182100.0
200200.0
(10)
(10)

1 For explanation of indexes, see footnote 1, table 1.
2Index includes draperies.
3 The number of items given represents the types of goods and services priced, and not the number of
grades or qualities priced for a given item. The entry applies to the most recent date for which information
is available.
4 The series given represents a combination of indexes with different weighting prepared in different
periods of time for overlapping dates.
3July 1939 prices=100.
6 Figure relates to November.
7Figure relates to October.
3Figure relates to July.
3 Figure relates to February.
w Not available.
u The year 1939=100.
MJuly 1936-June 1937 prices=100.




Price Control and Rationing in Foreign Countries
During the War
Sum m ary

When manpower and materials are diverted to war production
and shortages develop at the same time that purchasing power is
expanding, serious disturbances in the production and distribution
of wartime essentials are inevitable unless goods are rationed and
their prices controlled. Judging from reports which have come to the
United States, some type of price control was in effect in all the coun­
tries of the world during the war period, and controls have been con­
tinued since the end of the war, because there has not yet been the
time or productive capacity to provide enough goods to meet current
effective demand. Great Britain has already enacted a law making
it possible to maintain economic controls over a 5-year period.
Price-control measures have varied widely from country to coun­
try dining the war period, depending on the military situation, the
extent of dependence on imported goods, the transportation facilities
available, and the traditions of the country as to government control.
Most nations had some form of price control by the government in
the interwar period. In some, controls were designed only to pre­
vent unfair competition. In some, rents were also regulated because
of housing shortages. In certain countries, prices of specific commod­
ities regarded as particularly important to the national economy
were subject to government control. In other countries, prices
generally were subject to government control before the outbreak of
the war—notably in New Zealand, the Union of Soviet Socialist
Republics, Norway, Denmark, Switzerland, Mexico, Chile, Italy,
Germany, and Japan.
At the outbreak of hostilities, price ceilings for a large number of
essential raw materials and consumers' goods were set by some gov­
ernments immediately. Others, Canada for example, limited price
controls in the early part of the war largely to informal agreements
with the trade to restrain prices, and did not establish formal con­
trols generally until several months, or even a year or more, after the
war began.
In some countries, price ceilings have been set for all goods and
services. In others, as for example in the United Kingdom, prices
of goods and services which were regarded as essential in wartime
were strictly regulated, but no attempt was made to regulate prices of
goods which were not considered necessaries. It was thought that
this procedure insured effective policing of price ceilings for the goods
which every family must have, without diverting manpower (needed
for war production) to policing prices charged for luxury and semi­
luxury goods which it was possible to do without as long as hostilities
continued.
Many countries have resorted to subsidies for food and some other
necessaries either at the producers', the wholesalers', or the retailers'




( 19)

20
level to maintain prices at the ceilings fixed, in spite of increased
production costs.
Subsidies to producers encouraged the production required at a
lower cost to the whole population than would have resulted if pri­
mary-market prices had been allowed to rise and distribution charges
at each level had been computed on the basis of increased prices.
In some cases, subsidies were granted to high-cost producers of war
materials who would not have been able to operate under the ceilings
set for the industry as a whole. Subsidies were introduced at the
wholesalers1 or retailers7 level when primary-market prices had
risen, but the stabilization of prices at retail was regarded as necessary
in order to prevent undue increases in living costs.
In the countries which were invaded by the Axis powers, pricecontrol measures have proved largely ineffective because of the
extreme shortages caused by the destruction of production equipment
and transportation facilities, and the disruption of government
administration.*
In most countries from which reports are available, certain essen­
tial foods were rationed during the war period, and food rationing
continues even in countries with export surpluses because of the
general shortage of food around the world. The cessation of hostili­
ties has made it possible to increase food rations in some countries
recently but in others rations have been decreased. Bad weather
in a number of important food-producing countries and the disruption
of production caused by the war have combined to keep world food
supplies far below prewar levels. Food production in continental
Europe and North Africa is estimated as 25 percent below the 1935-39
average in 1944-45. It is clear that large exports from areas having
food surpluses will be required to avert general disaster. Production
in Occupied China, the Philippines, Siam, French Indo-China, and
Japan was also below the prewar average this year, and the food
situation in East Asia is serious.
In most countries certain essential articles of clothing were rationed
during the war period and in some countries, rationing covered cloth­
ing of all types and housefurnishings. In addition, tires and gasoline
were rationed in many areas and other essential consumer goods
were allocated only to persons who had lost their possessions as a
result of enemy action.
N ew Zealand

Price control was in effect in New Zealand before the European
war. Under the Prevention of Profiteering Act of 1936, prices were
not to be raised above those in effect on June 1, 1936, unless the in­
creases were “ reasonable.” The Primary Products Marketing Act
of 1936 provided for the fixing of prices of butter, cheese, eggs, fruit
and honey, hops, and potatoes. Maximum prices were set for a
wide variety of foods which the Government marketed at wholesale.
Certain categories of rent were regulated under the Fair Rents Act
of June 1936. These measures continued in effect during the war, in
addition to the specifically wartime controls.
Immediately following the outbreak of war, prices were frozen at
the September 1, 1939, level. However, within a few weeks, the
Price Tribunal was authorized to grant increases for goods with in­




21
creased costs, though the seller might be required to absorb part or
all of the increases when gross profits seemed high; replacement
costs were not included in computing permitted price increases. In
August 1941, it was announced that the retail prices of 38 essential
commodities were to be stabilized at the September 1, 1941, level,
using standardization, improvements in the organization of produc­
tion, and subsidies where necessary; the commodities included food­
stuffs, New Zealand-made clothing and footwear, streetcar fares, and
fuel and light. No increases in these commodities were to be permitted
by the Price Tribunal, which continued to hear applications for price
increases, even for stabilized items, and to recommend methods of
stabilizing prices, when increased costs could not be absorbed. The
policy was one of stabilizing the price of each item separately. Ra­
tioning was applied in April 1942 and was extended as shortages
developed, covering meat, sugar, butter, tea, clothing, footwear, etc.
By November 1942, the retail-price index was 14.3 percent higher
than in August 1939, and in December 1942 regulations were issued
promulgating a new stabilization policy. In order to provide the
Government with a more effective check on price trends than had
been available hitherto, a new wartime index of retail prices was
prepared. It covered a broader range of commodities and services
than the earlier index and included all items which were regarded as
essential to a wartime standard of living and which the Government
intended to control. Instead of trying to stabilize the price of each
item separately, however, the Government aimed at stabilizing the
wartime index. Thus, increases in some prices might be offset by
reductions in others. Rents other than those of dwelling houses,
which were covered by the Fair Rents Act, were fixed at the rent
payable on September 1, 1942, although a “ fair rent” above that
amount could be determined. Subsidies were utilized extensively,
totaling 3.5 million pounds in 1943-44, and being estimated at 5.4
million pounds for 1944-45; items subsidized included sugar, wheat,
hides, etc.
Australia

Price control became effective in Australia in October 1939, under
an order providing that certain products should not sell at higher
levels than on August 31, 1939, unless it could be shown that unavoid­
able increases in costs had occurred. This order was superseded by
the National Security (Price) Regulations of 1940, which prohibited
any unauthorized increases in wholesale or retail prices. At first,
allowance was also made for maintaining a constant ratio between
profits and costs, but in April 1942 it was decided that the total profits
of any business should not exceed those of April 15, 1942, assuming
the same volume of business and notwithstanding any rise in the
value of sales resulting from higher costs. Rent restrictions were
instituted early in the war and differed in form, depending upon the
tenants and kmd of property. In general, increases were made con­
tingent on obtaining official permission.
On April 12, 1943, rigid general ceiling prices were introduced, the
maximum being fixed at the levels current on that date. All com­
modities on the civilian market were subjected to stabilization, it
being the deliberate public policy to include goods outside the coverage
of the official price index. To maintain the ceilings, the Government




22
subsidized producers and traders for any advances occurring after
the price freeze. The subsidy even extended to wage increases.
During 1943-44, the total cost of the subsidy was 7 million pounds,
and in 1944-45 it was 12 million pounds. Items that bulked large in
the respective totals were tea, potatoes, milk, firewood, essential
imports (particularly textiles), and wage increases. Essential con­
sumer goods gradually brought under consumer rationing were cloth­
ing, footwear, certain household drapery goods, butter, tea, sugar,
gasoline, and meat. Many additional items were rationed at the
source, by the restriction of supplies of raw materials and labor.
From the date of the stabilization program (that is from the end of
the March quarter of 1943) to the first quarter of 1945, the price index
for all household commodities remained constant.
Canada 4

On September 3, 1939, Canada established control of the supply
and prices of the “ necessaries of life.” In addition, prices of specifi­
cally war materials were controlled. During the following 2 years,
control consisted largely of informal agreements with the trade, to
restrain prices; efforts to increase supplies; and a few formal price
controls during emergencies only (wool, sugar, and butter). Control
of housing rentals was established in September 1940, and certain
areas were put under formal price-control orders.
In the fall of 1941, prices advanced more rapidly and increases were
more widespread than during the previous 2 years. Accordingly, a
general price ceiling was announced in October 1941, centralizing
regulation of all prices of goods and of certain services— at all levels
of distribution—under the jurisdiction of the Wartime Prices and
Trade Board, and freezing prices of most of them at the highest
prices charged in the period September 15 to October 11, 1941. Cer­
tain exceptions were made, such as sales by the primary producer of
a wide range of foods, but even in these cases prices could not be more
than “ reasonable or just.” Rent control was extended to include all
except farm land, and maximum rental for those properties not
already controlled was established at the rate in effect on October
11, 1941. Consumer rationing on a relatively very limited scale
was adopted for some products, such as several foods (sugar, butter,
preserves, and meat, formerly also tea and coffee), tires, and gasoline.
Subsidies were used freely, as well as remission of duties and bulk
purchasing for resale, any losses being absorbed by the Government.
Subsidies were restricted to essential consumer goods; they were
utilized for many foods, such as tea, rice, oranges, butter, milk,
groceries, and canned fruits and vegetables, and for coal, petroleum
and its products, fertilizers and chemicals, raw cotton and wool and
their products, raw hides and skins and their products, lumber, foot­
wear, woodenware, and other products. In the first 6 months after
December 1941, the amount paid in subsidies amounted to 4 million
dollars; for the period between December 1, 1941, and December 31,
1944, expenditures totaled 230.8 million dollars (including direct sub­
sidies and trading losses of four administrative agencies). As a
result of the measures, the cost-of-living index for Canadian cities
rose only 2.8 percent from October 1941 to April 1945.
4 See Price Control in Canada, in Monthly Labor Review, August 1945 (p. 243).




23
United Kingdom

Responsibility for the public control of prices of raw materials and
of food was assumed by the British Government at the outset of hos­
tilities in 1939; other goods bought by consumers were soon controlled;
and rents had been regulated since 1915. The State became the sole
importer and sole buyer of many raw materials, but followed the policy
of permitting the preexisting wholesale and retail distributive system
to be maintained by allowing all reasonably efficient traders to con­
tinue in business. On the consumer side, pressure on supplies was
checked by the early introduction of rationing, which started with
bacon, ham, butter, and sugar, and was gradually extended to most
of the scarce foods and to clothing, and by the introduction of utility
goods designed to meet essential needs in the most economical manner.
Living costs mounted rapidly during the first 4 months of the war,
when prices of consumer goods other than food were still uncon­
trolled. Chief causes of the rise were the depreciation of the pound
sterling, rising prices in the countries from which goods were imported,
and sharp advances in shipping costs. Subsequently, shipping costs
and insurance rates continued to increase.
Under the Prices of Goods Act, which was enacted in 1939 and be­
came operative on January 1, 1940, the Board of Trade was em­
powered to freeze the price of any goods at the level prevailing on
August 21, 1939, subject to adjustment for changes in costs. Per­
mitted changes in prices were limited to those “ reasonably justified in
view of changes in the business,” and this provision was interpreted
to cover only the amount of increased cost, leaving the profit margin
at the same money level and not permitting a percentage rise. The
net result of the interplay of pressure on prices and of controls was
that the official cost-of-living index increased by 28 percent between
September 1, 1939, and April 1, 1941.
Beginning in the latter month, the Government successfully under­
took to stabilize consumer prices, as measured by the official cost-ofliving index, at not more than 30 percent above the prewar level.
Under the Goods and Services (Price Control) Act, effective July 22,
1941, the Board of Trade was empowered to fix maximum price orders
covering any stage of production or consumption and not merely to
freeze prices as had been provided by the 1939 price law. Another
important factor in stabilization was the doubling of subsidies in 1941
as compared with 1940. Initially, subsidies had been placed on flour,
bread, meat, bacon, and milk, and were later extended to other com­
modities. Estimated expenditures by way of subsidy in 1945 total
225 million pounds, of which 65 million pounds are for bread, flour,
and oatmeal, 26 million for bacon and other meat, 40 million for milk,
cheese, and eggs, 17 million for sugar, 3 million for tea, 28 million for
potatoes, and 46 million pounds for other commodities. The amounts
spent annually for subsidies from 1938 through 1945 are shown in the
accompanying statement.
1938
1939
1940
1941

____________ £15,000,000
____________ 20,000,000
____________ 70,000,000
___________ 140,000,000

i Estimated.




1942____________ £175, 000, 000
1943_____________ 190,000,000
1944_____________ 220, 000, 000
1945.........................1225, 000, 000

24
In the budget statement of April 1944, the Chancellor of the Ex­
chequer stated that it might be necessary to allow the cost-of-living
index to rise 35 percent from the prewar level instead of 30 percent.
However, by July 1, 1945, the index, having reached its maximum in
World War II, was 33.5 percent higher than at the outbreak of war
in Europe.
Union o f Soviet Socialist Republics

The Soviet civilian supply of foods and goods was seriously cut by
the German invasion in June 1941 and the continued demands of the
Soviet armed forces. So grave was the situation that rationing was
introduced in July 1941, after a period of about 6 years of nonration­
ing. For purposes of rationing, the civilian urban population was
divided into the following five categories, in descending order of size
of rations received: (1) Manual workers in war industries, (2) other
manual workers, (3) white-collar workers, (4) dependents over 12
years of age, and (5) children under 12. For example, in 1942 bread
(the principal item of food) was rationed daily to the five population
categories as follows: Those in class 1 received 28 ounces; those in
class 2, 21 ounces; those in class 3, 18 ounces; and those in classes 4
and 5, 14 ounces. The customary wartime diet of the Soviet worker
included cabbage and potatoes, in addition to bread. Very little
meat, if any, was available to civilians during the war period.
In March 1943, the bread ration for manual workers in war indus­
tries was reduced to 25 ounces, but miners and workers performing
extra-heavy work were entitled to a special ration of 35 ounces of
bread a day. In addition, workers fulfilling or exceeding their pro­
duction quotas received supplemental food rations. Such workers
also had priority in pm-chasing goods that were too scarce for general
rationing. Price fixing was essential in carrying on the distribution of
the rationed foods and goods, and prices were frozen during the war
period. The consumer, moreover, could buy his rations only at the
store where he was registered.
Civilians could supplement their food rations by planting individual
gardens (in 1944, some 16.5 million workers had done this) and by
buying on the inflated-price free market or, after April 1944, in spe­
cial Government-controlled stores.
In contrast to the “ frozen” prices of rationed foods and goods,
prices on the free market in the Soviet Union are uncontrolled.
Prices of certain commodities on the free market and in the special
Government stores selling foods and goods on a nonrationed basis
are available for certain dates. In Moscow, in April 1944, the un­
controlled prices on the free market were about 30 to 40 times higher
than the prices that the Government asked for corresponding foods
that were rationed. This indicated a steep wartime rise in prices on
the free market, for in January 1940 free-market prices of meats and
eggs in Moscow were only half again as high as the fixed prices in
Government stores; the price of milk was 1% times higher; the price
of potatoes proved to be the exception by being 12 times higher. The
free market is supplied by collective farmers who want to sell or barter
any of their share of the collective-farm produce or of the products from
their own gardens. Free-market prices vary from city to city and are
progressively higher east of Moscow; in the summer of 1943 freemarket prices on the Siberian coast were on the average about twice




25
as high as Moscow prices. In evaluating these figures, it is important
to remember that only a very small part of the goods produced in
Russia is sold on the free market. Most of the goods produced are
rationed and sold at ceiling prices. Goods sold on the free market are
those for which production quotas were not established in plans for
the year.
The establishment, in several large cities in mid-April 1944, of
special Government-controlled department stores, food shops, and
restaurants served to stabilize or reduce prices on the free market.
The Government made available some foods and other goods on a
nonrationed basis, at prices approximating or lower than those on the
free market. Factory workers were allowed a 10-percent discount,
Government employees a 20-percent discount, and heroes of the
Soviet Union and other distinguished citizens a 40-percent discount.
As a result of this Government action, it was reported that by AugustSeptember 1944 prices on the free market, as compared with prices
of a year before, had decreased as follows: Meats, 66.7 percent; milk,
70 percent; potatoes, 28.6 percent; onions, 40 percent; cucumbers,
75 percent; and carrots, 50 percent. According to Izvestia (Decem­
ber 21, 1944), the opening of these special Government-controlled
stores indicates the stimulation of war-interrupted production in the
textile, shoe, haberdashery, perfumery, pastry, and other consumergoods industries.
France

On September 1, 1939, a decree law was passed in France providing
for strict limitation of the profits of private enterprise working in the
interest of the nation. Similar restrictions were placed on the profits
of other enterprises by a decree of September 9. A price-stabilization
law followed on October 21, 1940, after the country had been occupied
by the enemy. The price structure was then geared to German
economic policy. Large proportions of the goods produced in France
during the German occupation were shipped into Germany. On
liberation, the returning French Government undertook to retain
the price-fixing system, with modifications designed to make the
arrangements more equitable, but the machinery did not operate
successfully. Price rises continued, owing to shortages of supplies,
inadequate transportation, wage increases, hoarding, and inability
to enforce the price controls. The continuance of rationing of most
essential food and clothing items and Government subsidies on food
products and basic industrial products to a total of 40 billion francs
(for an unstated period) were ineffective in halting either the price
rise or the black market.
In an effort to avoid placing a heavy burden on future generations
by reason of subsidies, the Government determined to pursue a changed
policy in the spring of 1945. This program was presented by the
Minister of Finance and National Economy, who stated that effective
stabilization of prices and salaries would require courageous measures,
that is, the absorption into prices of certain costs such as wage in­
creases already granted (and a fraction of certain others) and the full
cost of fuel and raw materials, including the payment of costs of wheat
for bread that was formerly subsidized from public funds. Once these
and other adjustments were made, enterprises would be expected to
meet their own price problems by recourse to economies and by in­



26
creasing production; wages would be stabilized. Kents were to remain
frozen for workers’ dwellings throughout 1945. Regarding agricul­
tural prices, some upward adjustment was considered to be warranted
on livestock, and a bonus was believed to be in the interest of insuring
an increase in milk production during the winter of 1945-46. For the
Government’s part, it would exchange old bank notes for a new issue
and would control credit.
For the 1945 growing season, the French Government removed
fresh fruit and vegetables from price control and undertook to estab­
lish retail “ token” shops in Paris and other major cities in which such
products were to be sold at fair prices. It was hoped that such
shops would operate to drive the regular distributors’ prices down to
a fair level.
Ita ly

Fascist Italy.— The first central price committee in Italy was
initiated by the Fascist Government in Italy in 1935, and soon after
the outbreak of war in Europe the Government adopted rationing for
individual consumers. Beginning in July 1941, food prices were
regulated by a committee attached to the national directorate of the
Fascist Party, and rationing was extended. Nevertheless, prices rose
rapidly.
The cost-of-living index for 50 Italian cities, which stood at 77.5
in 1935 (1928=100), reached 99.1 in 1938 and 102 in 1939. During the
same periods, the food index rose from 72.8 to 93.0 and to 96.0. By
June 1942 (the latest date for which this series is available) these
indexes (1929=100) had risen to 162 and 172, respectively.
Liberated Italy.—For the period of Allied-Italian control over liber­
ated Italy, as well as the latter part of the Fascist regime, neither satis­
factory indexes nor price lists are available. In March 1944, the
Allied authorities froze prices of a number of foods, daily necessaries,
and public utilities and an Allied Military Government decree required
the posting of fixed price lists twice a month. The compulsory collec­
tion of grain, oil, livestock, and other commodities was continued.
Fertilizers, important raw materials, etc., were allocated by the Allied
authorities.
Coupon rationing was complicated by problems of transportation as
well as of supply from Italian and Allied sources. A High Food
Commissioner of the Italian Government, with power to fix prices,
control supply and distribution, and requisition supplies, collaborated
with the Allies in establishing ration scales, which varied for different
categories of consumers. Until March 1945, Government subsidy
kept the price of bread down to 5 lire per kilogram, but at a cost of
some 10 billion lire annually. The system of price control and ration­
ing was extended as the area of liberated Italy grew.
Increases in wages and cost of living and family allowances and
increases in prices operated in a cycle, while compulsory pooling of
agricultural supplies became more ineffective and the quantity of lire
in circulation (14 times as great in early 1945 as in 1938) expanded.
A cost-of-living index (November 1940=100) for Rome (from the
Rome Chamber of Labor) stood at 400 in November 1943 and 1070
in December 1944. An index of the monthly cost of a food budget,
providing 2,200 calories daily for a family of 3.9 consuming units
(based upon data from the Central Statistical Institute and the Allied




27
Labor Subcommission, with 1938=100), reached 100.9 in 1939, 134.4
in 1941, 544.8 in 1943, and 2229.4 in November 1944.
The black market operated openly, providing a market for those
sellers who did not wish to take Government prices in the pools
(ammassi centrali) and a source of supply for those buyers who could
afford to supplement their rations. The Labor Subcommission esti­
mated that of a food budget of 171.8 kilograms, 39.0 percent was
obtainable by ration card and 61.0 percent only on the black market in
September 1942, and 23.4 and 26.2 percent by ration card and 76.6
and 73.8 percent on the black market in September of 1943 and 1944,
respectively. In March 1945 about one-twelfth of the theoretical
budget of a family of five, providing 2,200 calories daily per consuming
unit, could be obtained by ration card; the remainder would have to
come from other sources— obviously the black market.
The Italian rationing authorities, in collaboration with the Allied
Commission, established different categories of consumers, whose
rations differed in quantity and kind. Children and the aged, for
example, were entitled to a larger sugar ration, and expectant and
nursing mothers were entitled to an extra milk ration. The actual
distribution of supplementary foods to persons in need has been
irregular, however, and uncertain. The daily ration, in ounces, of
the two major foods for the principal categories of the population, was
as follows:
Bread
{ounces)

17.64
Allied diplomats__________________________________ _
Policemen and other public security officers__________ 14. 99
Merchant seamen________________
14. 99
Hospital patients_____________________________________ 12. 35
Refugees in camps____________________________________ 10. 58
Civil prisoners________________________________________
8.82
Italian army inductees_________________________________ 8.82
Italian civilians_____________________________

Spaghetti
{ounces)

7.05
3.00
3.00
3.53
3.53
2.82
2.82
7.052.82

Some suggestion of how present food shortages are affecting the
Italian people is provided by recent data on mortality rates. In 1944
the death rate in Rome was approximately 50 percent greater than in
1937 and it exceeded the birth rate for the first time since the epidemic
of 1918. The largest number of deaths was attributed to “ heart
failure,” and the second largest to tuberculosis. The infant mortality
rate is reported to be approximately 50 percent; and the press states
that in one foundling home 40 percent of the children are dying of
malnutrition.
N orw ay

In the interwar period, control of certain prices in Norway was
vested in a Cartel Control Board. Price controls initiated in Sep­
tember 1939 were therefore merely an enlargement of regulations
already in operation.
In September 1940, after the German occupation of the country,
a Price Directorate was established by the Quisling Government
which set prices and rations and had extensive powers to investigate
the records of producers and distributors and to fine or imprison
persons who violated its decrees. There was an extensive black
market, as the Norwegians regarded black-market purchases as a
means of hampering the German administration. Black-market
prices are not reflected in the official statistics.




28
Industrial materials, foodstuffs and other consumer goods, trans­
portation, and use of communications facilities were rationed. Meat
was available to the general public only on certain holidays; although
some persons in the employ of the German Government had almost
half a pound a week, the average person received only about 2 pounds
a year. Whole milk was generally reserved for children; adults had
rations of skimmed milk. Vegetable rations fluctuated with supply.
Wheat, rye, and potato flour, bread, and cakes constituted a single
ration unit and consumers distributed their purchases among these
items as they saw fit. Clothes were rationed on a point system.
Raw materials were allocated to manufacturers on a quota basis.
During the occupation, the first consideration in making allocations
was to supply producers of goods ordered by the German Government.
At the time of the liberation, it was decided that the continuance
of controls of prices and wages and rationing would be necessary for
a while because of shortages of goods of all kinds. In a statement
of June 9, 1945, in the Arbeiderbladet, the Price Director of the free
Norwegian Government pointed out that, with the amount of cur­
rency in circulation and the short supplies, the danger of inflation
was imminent. He stated that the new decree on controls was “ only
of a temporary and extraordinary character,” and that it was desirable
that the Storting consider this entire matter as soon as possible.
Denmark

Price control over certain goods which enter into foreign trade was
established in Denmark in 1937. Ceiling prices, established by the
Germans the day after the occupation, were soon ineffective owing to
the withdrawal of ceiling prices on agricultural products and inclusion
of the increased cost of production in the prices of other commodities.
The laws of May 30, 1940, supplemented by the law of November
22, 1941, however, strengthened the controls.
In view of German dependence on Denmark as a source of food
supply, prices paid for agricultural products were allowed to rise
rapidly between August 1939 and April 1940. Thereafter, subsidies
were granted to producers to keep down the prices of staple goods.
In 1942-43 these, together with direct rebates on food and clothing
to needy consumers, amounted to 158 million crowns. The black
market was relatively inactive.
Sweden

Sweden’s economic life was practically untouched during the first
6 months of the war, thus permitting the testing of the emergency
system before it was put into full operation after the blockade of
April 1940. The State Food Commission was established in October
1939, the official Fuel Commission in July 1940, and the State Price
Control Board in June 1941. Rationing of food and fuel was insti­
tuted as necessary to prevent shortages and hoarding, and subsidies
were maintained on the most important foodstuffs. By the beginning
of the fourth year of war (September 1942), because of the blockade
and the very poor harvests of 1940 and 1941, it was necessary to
ration foods representing 70 percent of Sweden’s total food] con­
sumption. Milk and fish are the only important foods which have




29
been unrationed. Clothing was rationed from December 30, 1941,
and shoes from May 1943.
Poland

In the summer of 1941, after the Russian retreat, all of prewar
Poland came under German control, and strict price control, wage
control, and rationing were instituted. The industrial parts of western
and northwestern Poland, with about 10 million people, were incor­
porated into the German Reich, and prices, wages, and rationing
conformed to the system for Germany. In the remaining territory
of Poland, prices, wages, and rations were also strictly regulated.
However, non-Germans ^received lower wages and .lower rations;
Poles received rations which constituted only about half the normal
requirements for health, and Jews were entitled to only about half
the inadequate rations received by other Polish citizens. As a result
of the low rations, black-market prices are reported to have risen to
500 percent of 1939 prices by 1941, and subsequently became much
higher still. In 1942, when the food situation was the worst, actual
famine occurred in many localities. The food situation became less
critical by the autumn of 1943. On October 1, 1944, the Polish
Committee of National Liberation introduced a ration-card system
in liberated Polish territory, providing for larger and more adequate
rations of food and other consumer goods at prices fixed by the
State.
Switzerland

As the Swiss Price Control Office was established as early as 1932,
Switzerland at the outbreak of the war had an experienced agency to
cope with emergencies. Its chief weapon was the right to enforce
price ceilings. Another Government measure was the establishment
of a fund from which profits on similar articles could be equalized.
Under the 1932 laws, a grain reserve had been accumulated, which at
the outbreak of the war totaled 80,000 metric tons. Bread was not
rationed during the first 3 years of war; thereafter a ration of 7.9
ounces per day was set, which was increased during the fifth war year
to 8.8 ounces. Government subsidy kept down the price of the
bread. Rationing in 1944 included all staple foods except fruits and
vegetables. Switzerland was forced to rely almost exclusively on
German coal throughout the war, and the prices rose 80 to 90 percent
during the first war years.
E gyp t

Maximum prices of some foods were fixed in 1940 and the system
was extended in 1941 to include cereals, flour, bread, and later rice
and rice flour. Eventually the Government became the sole buyer
of the wheat and corn and other essential food crops. Rents were
frozen at 12 percent above the April 1, 1941, level. Control to pre­
vent war profiteering began early in the war, and decrees of 1943
regulated sales of retailers, wholesalers, and manufacturers and limited
commercial profits. In spite of these and other devices, the wholesale
price index (1935=100) stood at 322 in February 1945, and the costof-living index (June, July, and August 1939= 100) at 294. In Egypt,
as in other countries of the Middle East, production and import




30
control was carried on in cooperation with the Middle East Supply
Center— a British and American war agency.
Iran

A Price Stabilization Section was created in the Ministry of Finance
in Iran, and it acted with the Middle East Supply Center in allotting
import quotas for Iran. The Finance Ministry controlled the licens­
ing of private dealers, the distribution of rationed and unrationed
goods, and the Government stores. Although the Government placed
sugar, cotton piece goods, tea, wheat, and other items under Govern­
ment monopoly, the distribution of the available supplies in the
Provinces was difficult.
Palestine

The Government of Palestine adopted price fixing as early as 1940,
and maximum-price orders were issued from time to time for milk
and other dairy products, meat, and various vegetables. The Gov­
ernment also subsidized wheat, flour, and millet, and assumed control
of imported wheat and flour. Certain foods (meat, bread, sugar,
vegetable oil, cocoa, etc.) were rationed by a point system in urban
areas and by allocation in villages and semi-urban areas (the source
of supply to retailers being under Government control). These
measures were accompanied by others which limited the amount of
currency in circulation (increased income and land taxes and the
sale of defense bonds).
M exico

Price control was established in Mexico by a decree of June 25,
1937. This measure gave the Department of National Economy
control over the production, distribution, and prices of all commodities
regarded as of fundamental importance. Prices continued to rise,
however, and in July 1938 a Federal Regulatory Committee of the
Food Market was authorized to fix and to advertise the prices at
which specified food products were to be sold to producers and to
consumers. The organization was also empowered to purchase and
to import wheat, rice, and corn for the purpose of lowering prices.
The committee’s chief function proved to be the importation of wheat
and lard to meet a serious national deficit.
In 1939, the Government opened a number of retail stores to sell
staple commodities such as rice, flour, corn, and sugar, and price
ceilings were established for these commodities. In addition, legisla­
tion provided for export control of goods needed in Mexico.
The Federal Regulatory Committee of the Food Market was dis­
solved when a decree of May 3, 1941, established the National Dis­
tribution and Regulating Company (“ Reguladora” ) under the Min­
istry of National Economy. The new agency was “ to regulate the
prices of commodities of prime necessity, or of those which serve as
raw materials in the manufacture of products of that nature, and to
assure fair prices to the producers and consumers.” Later (April 23,
1942), Reguladora was directed to purchase the total production of
certain vital foodstuffs, and to sell them directly to merchants “ in
order to prevent speculation and profiteering.” Acting upon that



31
authority, Reguladora in 1942 intervened directly in the Mexican
market and bought and sold 60 percent of the rice, about 85 percent of
the lard, and from 60 to 70 percent of the corn consumed in the
country.
In the meantime, the Secretary of National Economy was given
the power to compel all persons holding large stocks of certain im­
portant items to put them on sale at prices not in excess of the legal
maximum. Merchants were ordered to display a list of prices of all
the articles named and a decree of April 13, 1942, required a monthly
declaration of stocks on hand of articles of prime necessity by all
farmers, merchants, and shop owners with a capital of more than
10,000 pesos, engaged in buying and selling one or more articles of
food considered as of prime necessity, to register in the Department
of National Economy, and thereafter to make weekly declarations
concerning their stocks of such items.
Further intervention in marketing operations was sanctioned by a
decree published March 2, 1943. This measure authorized the estab­
lishment of a Consortium by Reguladora and three other Government
agencies— the National Bank of Agricultural Credit, the National
Bank of Ejidal Credit, and the Importing & Exporting Co. In order
to maintain price stability, protect producers and consumers, and
prevent speculation, the Consortium was empowered to acquire rice,
beans, corn, and wheat at fair prices. It was also given the control of
exports.
Absolute control over the prices and transportation of foodstuffs
was established by an executive decree promulgated May 18, 1943.
The price-control machinery was reorganized in February 1944 when
a presidential decree abolished the Consortium and transferred Regu­
ladora and the price-control activities to the Ministry of Finance.
Since that time, emphasis has been placed upon increasing the pro­
duction of foodstuffs by the extension of credit to producers and by
giving Reguladora authority to enter any market and control it to
the extent needed. Probably the most effective price-control mea­
sures have been Reguladora^ imports of large quantities of basic food
items, thereby increasing available supplies.
Despite the efforts of the Government to control them, prices and
the cost of living have risen almost continuously in recent years.
An exception to this general statement as to price-control measures
has been the price ceilings for pharmaceutical products, established
by the Ministry of Public Health since July 1942. These ceilings are
said to have been generally well observed, having had the backing of
public opinion as well as active enforcement by Public Health in­
spectors. Aside from import control of commodities allocated to
Mexico by the United States, designed to complement the United
States allocation and export-control system, Mexico has not resorted
to rationing, except for rubber, rubber products, and cement.
Brazil

Under the Coordinator of Economic Mobilization, who was ap­
pointed in September 1942, municipal price commissions were created
in Brazil on January 10, 1943. Temporary price ceilings were estab­
lished for foodstuffs and basic commodities, at the levels of December
1, 1942, and the commissions were directed to ascertain what prices




32
were charged on that date by producers and wholesale and retail
dealers. By that time, the cost-of-living index for Rio de Janeiro had
risen 23 percent above its August 1939 level. The price commissions
were authorized to publish and enforce the observance of maximum
set for foodstuffs and “ commercial” products of necessity to the
[>rices
ess-privileged classes.
Subsequent orders of the Coordinator fixed prices of all merchandise
for which ceilings had not been issued earlier, froze transportation
rates at November 10, 1943, levels, prohibited profits greater t’ an 10
percent on certain articles, and established the conditions of their sale.
Nevertheless, the Rio de Janeiro cost-of-living index rose almost 27
percent between January 1942 and May 1944. In that month the
Coordinator placed prices for 10 articles under the control of the
Federal Government, assumed control of export permits, and an­
nounced plans for further price-control measures. The Rio de Janeiro
index continued to rise, however, through March 1945, the latest
date for which the series is available in Washington.
In May 1945, a plan was announced to abolish the Office of the
Coordinator of Economic Mobilization and to transfer most of its
functions to other Government agencies.
Bolivia

Price control in Bolivia developed from governmental efforts to
check speculation in the distribution and sale of imported foods and
commodities. The nation is largely dependent upon other countries
for its supplies of food and most other consumer goods, and the in­
adequacy of transportation and distribution facilities encourages
speculation. Until June 1941, Government regulation of prices in
Bolivia was carried out under the direction of the Ministry of National
Economy through the powers granted by a law of 1938 intended to
prevent speculation. The Minister, however, exercised his pricecontrol function directly only in La Paz; in the Departments, prices
were fixed by price-regulation committees under his supervision and
with his approval. These committees were composed of the Prefect
of the Department, an agent of the Central Bank, and the local
inspector of commerce and industry. Prices were determined on the
basis of cost, plus profit and overhead.
The Ministry of National Economy was also given the authority,
on June 21, 1941, to regulate prices of imported articles of subsistence
and of articles of national production. A decree of September 17,1941,
governing the prices of all commodities, established 5 categories of
merchandise—live animals, articles of subsistence, raw materials,
manufactured articles, and gold and silver. On these 5 groups, the
decree set profit and overhead percentages which varied according
to two factors— the type of merchandise, and the activity of the
merchant (i. e. whether importer, wholesaler, or retailer). The
decree also required merchants to display price lists and use price tags
on articles for which prices had been fixed. No general price ceilings
were established and there was no general rationing system.
In May 1943, the Office of Price Control was established under the
supervision of the Ministry of National Economy. The Office was
authorized to establish and maintain fixed prices for all articles of
consumption, services, and rents; to ration articles subject to import




33
quotas; and to act as a court in hearing charges of violations of its
price-control regulations. Each Department was to have a price
administrator and a price-control council, and within the Departments,
each Territory was to have a price-control council. The Office of
Price Control was empoweped to use the services of the inspectors of
commerce and industry who previously had been assisting in the
enforcement of price-control measures in the various Departments.
Within a year of its establishment, the Office of Price Control was
abolished (April 30, 1944). Control of prices for farm products and
foods of prime necessity reverted to the municipalities, with the
Ministry of National Economy continuing its former functions with
regard to price control.
Chile

The 1932 law providing for the Chilean Commissariat General of
Subsistence and Prices did not go into effect until July 1939. Since
that date, broad powers have been granted to the Commissariat.
In 1942, it was further strengthened by a budget appropriation,
instead of having to rely upon income from fines imposed. Even
before the war, the Commissariat had the authority to control prices,
take measures to prevent hoarding and speculation, designate com­
modities as “ articles of prime necessity,” and subject the industries
concerned to regulation with regard to manufacture, imports, exports,
distribution, transportation, quality, weight, and measurement. In
the exercise of these powers numerous^ decrees were issued, fixing
prices and regulating trade in a variety of articles of common con­
sumption, including rice, potatoes, coal, sugar, alcohol, candles, shoes,
beans, and wheat.
After the outbreak of the war, the Commissariat was assigned the
control of wartime prices and the rationing of specified vital commod­
ities. It imposed a general prohibition against retail prices higher
than those prevailing on August 25, 1939, and regulated wholesale
prices also when necessary. Acute shortages of numerous articles
were met by price controls and regulations governing distribution
and consumption. Representative articles thus controlled were alu­
minum ingots, matches, tin plate, iron products, tires and inner tubes,
paper products, sewing machines, sacking and jute, and electrical
supplies. Control over the price of wheat and wheat products was
vested in the Agricultural Export Board.
The status of the Commissariat was changed by the Economic Law
of December 1943, which placed the Commissariat under the Presi­
dent; control of prices in each commune was vested in Vigilance Com­
mittees composed of 5 members designated by the Intendant of the
respective Province from the citizens of the place. The members of
the Vigilance Committees were to serve for 1 year, were available
for reappointment, and were to serve without pay.
The Commissariat has continued to function as an executive agency
under the President. During the first quarter of 1945, the majority of
price-control decrees published by that agency established higher
wholesale and/or retail ceiling prices for foodstuffs, agricultural
products, and certain industrial commodities. Such increases were
only partly reflected in the official cost-of-living index for Santiago,
since it includes relatively few fabricated goods. Two other decrees
provided for submission of financial statements or balances and stock



34
declarations to the Commissariat General by all individuals or firms
possessing articles of prime necessity or of habitual use or consumption.
It is difficult to assess the effectiveness of the price-control activities
of the Commissariat because there is no price index with a commodity
or geographic coverage extensive enough to reflect the total situation.
Recent reports indicate that, despite the existence of ceiling prices,
there is a strong tendency toward increases in the prices of staple
foodstuffs.
Argentina

Price control in Argentina was initiated by law No. 12,591 of
September 8, 1939, winch froze maximum retail prices of articles of
prime necessity at the level of the first 15 days of August of that
year, and authorized the executive branch of the Government to
determine and enforce maximum prices to be charged .by factories,
wholesale dealers, and importers. Reduction of wages or salaries
because of price fixing was prohibited under this law. Commodities
such as food, clothing, household goods, construction materials, and
equipment for lighting, heating, and sanitation were declared to be
subject to regulation or expropriation. At about the same time,
Government price guaranties for wheat and linseed were abolished.
No general system of rationing has been organized; however, from
time to time various agencies have been created or designated to
supervise the distribution of scarce materials.
China

Controls of production, transportation, and sales of essential com­
modities were introduced by the Chinese Government under the
regulation of 1937, which governed wartime control of agriculture,
mining, and commerce. In an effort to control the price and distri­
bution situation in China, the Executive Yuan subsequently estab­
lished controls over strategic raw materials, coal, iron and steel,
alcohol, cotton, and rice. A system of incentive prices for coal was
initiated on August 1, 1945. Although price controls are national
in scope, they have been administered locally, and have affected the
conditions in the large cities primarily. Such controls have been
more effective for manufactured products than for farm commodities.
However, ceiling prices on manufactured goods vary between locali­
ties, owing to differing production costs.
Price subsidies take different forms. The Chinese Government
has a monopoly on all salt produced, and fixes the price. It buys
cooking fats and may sell them below cost. Rice, cotton, and wheat
are accepted in payment of taxes and, in addition, producers are
required to lend or sell part of the rice crop to the Government at
fixed prices. These commodities may be sold in the cities or supplied,
as wages in kind, to Government employees, teachers and workers in
Government factories, and in factories working on Government orders;
these groups include most of the industrial wage earners in free China.
In the last year, supplies of the blue cotton cloth which is so impor­
tant to the Chinese worker and his family have not been large enough
to give rations to the entire population, and tickets entitling the holder
to buy such cloth have been distributed from time to time by lot.
Such rationing as exists is for city populations. Each individual




35
registers with a single cooperative and must purchase his rationed
articles from that source.
The great difficulties under which the Chinese Government has
been operating during the war period are well known. Measures
intended to control prices have been hampered by the fact that the
major part of the war expenses of the Chinese Government has been
met by borrowing from the banks, which in turn have issued currency
against credits given the Government.
The rise in prices has led to hoarding of commodities in anticipa­
tion of future price increases and to the purchase of foreign currencies
by persons who anticipate returning to occupied China after the war
and who wish to have foreign balances to buy production equipment
for the replacement of machinery destroyed by the Japanese. The
Government has met especial difficulty in increasing the available
supplies of agricultural products, because of the traditional attitudes
of the Chinese farmers who have not been accustomed to Govern­
ment controls and usually sell only enough produce to finance their
needs for clothing and salt. In a period of inflation, they tend to
withhold their products from the market in anticipation of higher
prices later.
Germany

Price control, introduced toward the end of 1936 in Germany, was
based on the prices prevailing on October 16, 1936, and was rigor­
ously enforced throughout the war. Certain adjustments to wartime
conditions were reflected in the relatively slight wartime rise in the
official cost-of-living index. Penalties for the violation of price regu­
lations were severe and speedy, even in the early period of the war;
for example, in March 1941 alone, no fewer than 3,975 Berlin shop­
keepers were convicted of violating price regulations. However,
ways were found to circumvent price control, mainly by barter which
the State-controlled press in 1942 called “ Public Concern No. 1.”
Allied bombings and the German mobilization of manpower for the
armed forces caused an increasing shortage in consumer goods and
in price-control enforcement personnel. In April 1943, the Frank­
furter Zeitung admitted that price control had become more difficult
for these reasons. The effect of the bombings was so great that, at
the beginning of 1944, over 26 million people in Germany were
reported by the German Labor Front as being fed in communal feed­
ing centers; subsequently, this number increased. Contributing
greatly to the maintenance of the food situation in Germany before
the last year of the war was the importation of animal products from
the occupied countries. Because of this, the consumers' level of
living in Germany was higher than that of any other belligerent
European State, with the possible exception of the United Kingdom.
The German food situation became really serious toward the end of
1944, when the first cut in food rations to consumers was made.
Other cuts followed in 1945, and the rationing system broke down
completely after the capitulation of the country to the Allied Nations.
Japan

When increased industrial expansion began in Japan about the time
of the “ China incident" of 1937, the Antiprofiteering Ordinance of 1917
was revived and its control extended. Enforcement was ineffective.,




36
and the Government began a policy of subsidization of industry.
Maximum prices for raw cotton, rubber, etc., were fixed by voluntary
agreement between producers and dealers. The wholesale price index
was rising, however, and in 1938 the Government created an organiza­
tion for price fixing, with a central committee presided over by the
Minister of Commerce and Industry. Official maximum prices were
set for 60 important commodities. With the outbreak of war in
Europe, the Government froze all wages, prices, freight rates, and other
fees and charges at the level of September 18, 1939. Since prices
continued to rise, the central price committee was reorganized in
April 1940, and a pride-policy council was attached to the Cabinet.
The policy then introduced was to include better enforcement and
subsidies to stimulate production.
Early in 1943, an emergency price plan was announced and in
November the Government again reorganized the price-control
structure. The Ministry of Agriculture and Commerce was estab­
lished, and within it a price-control deliberative council and a pricecontrol committee. Meetings of the council began in 1944, preceded
by the mobilization of a country-wide organization of price admini­
strative informants. By 1944, food consumption had decreased
materially, and all staple foods were controlled by the Government
and distributed through the Central Food Corporation which, after
providing for the aimed forces and for a reserve, sold the remainder
to local food corporations. These corporations, under the administra­
tion of the local governments, passed the supplies on to local neighbor­
hood associations.
Food rationing based on age, sex, and type of work began in 1941.
Families received ration coupons, and commodities were obtainable
through the neighborhood groups on surrender of the coupons. By
1945, the caloric value of the Japanese diet had fallen by about a
third.
In spite of subsidies to agriculture, the farmers, incentive to pro­
duction was reduced by high living expenses, and early in 1945 the
Food Administration Inspection Mission estimated that there were
1,000,000 illegal peddlers of foodstuffs. In Tokyo, the retail price
index of daily necessaries reached 294 in October 1944— an advance of
194 percent since the year of the “ China incident” and of 110 percent
since 1939. No index of illegal black-market prices is available.
Rationing of textiles was started in February 1942; nearly every
item of wearing apparel was rationed. Cards were issued on the point
system, differentiated for rural and urban consumers, and (in 1944) for
the summer and winter season, with points based on age and special
conditions. The inferior quality of textiles and shoes and the ear­
marking of goods for military uses caused serious shortages.
In order to make economic regulation effective during the war, the
Japanese Government created control societies in the fields of produc­
tion, distribution, and transportation. These eventually became
business corporations attached to the various ministries. The control
society of each industry had the responsibility of developing maxi­
mum production under complete Government control. Great com­
plexity in business procedures developed, as well as opposition to
interference with the profit motive, which may have aided in the
development of widespread black-market operation in foods, war
materials, and labor.



IT. S . GOVERNMENT PRINTIN G O F F IC E : 1 9 4 *