Changes

*[[Chester Bliss Bowles]], 1943-1946

*[[Chester Bliss Bowles]], 1943-1946

Henderson was five feet six, weighing 210 pounds, he began to throw his body around, to yell and shout orders, to threaten to throw people out of the windows and to exhibit himself before the populace as a sort of burly ideological comedian. It was Presidential Assistant [[Harry Hopkins]] who first led Henderson which led to a job in the TNEC. Then the SEC, NDAC, SPAB, OPM, WPB, OES, OPACS and, finally, OPA.

In 1940, Roosevelt named a planning board called the National Defense Commission with three heads. Edward Stettinius, of United States Steel, managed one section on industrial materials, [[Sidney Hillman]] another on labor and [[Leon Henderson]] a third on price stabilization.  It floundered. In January, 1941, it became the ill-fated Office of Production Management (OPM) under William S. Knudsen and Sidney Hillman. By August it was snarled.  Roosevelt named a super bureau over it called the Supply Priorities and Allocation Board (SPAB) with Vice President [[Henry Wallace]] at its head. After the [[attack on Pearl Harbor]] the [[War Production Board]] (WPB) under Donald Nelson took over.  In April 1941 Leon Henderson and his Price Stabilization Division were made a separate bureau and called the Office of Price Administration with Henderson at its head. As one observer commented, “The odor it created still lingers amongst us and it will remain for all time a classic for students in what not to do and how not to do it.” <ref>''The Roosevelt Myth''], John T. Flynn, Fox and Wilkes, 1948, Book 3, Ch. 7, [http://www.rooseveltmyth.com/cgi-bin/framed/2767/book/fdrmyth_Chapter_Seven___The_Happiest_Yea.htm ''The Happiest Years of Their Lives''].</ref>

 

At first OPA began with Henderson and 84 office assistants. In August, 1941 a new bill, reorganizing OPA, was being considered by Congress. A member asked if the plan would not require a staff of 100,000. Henderson replied: "Oh, no. This bill will be practically self-enforcing." The next year  May, 1942  Henderson asked for 110 million dollars and said he needed a staff of 90,000. The next year it cost 153 million and the following year it had a staff of 53,500 paid workers and 204,000 volunteers.

 

At one time there was an almost complete breakdown of food distribution throughout the United States. The paper work required of an ordinary small merchant was so extensive that it was practically impossible to comply with. Small food distributors were going out of business by the tens of thousands a month. Whole states were insufficiently supplied with meat, butter, lard or potatoes for two months at a time. OPA fixed the price of Louisiana potatoes at $2.50 per cwt., and the price of Texas potatoes at $3.75 per cwt. Louisiana potatoes were just trucked across the line and sold as Texas potatoes. Uniform prices on farm products for all markets very nearly starved out many large cities.  

 

 

Presidential Assistant [[Harry Hopkins]] who first led Henderson to a job in the TNEC. Then the SEC, NDAC, SPAB, OPM, WPB, OES, OPACS and, finally, OPA.

High prices are caused by inflation. Inflation is the expansion of the quantity of money available to buy things in excess of the goods available for purchase. If the number of dollars in circulation increases without an increase in the volume of goods for sale, inflation, or a raise in prices, is the result.  Henderson understood it exactly backward, thinking inflation was caused by high prices.

High prices are caused by inflation. Inflation is the expansion of the quantity of money available to buy things in excess of the goods available for purchase. If the number of dollars in circulation increases without an increase in the volume of goods for sale, inflation, or a raise in prices, is the result.  Henderson understood it exactly backward, thinking inflation was caused by high prices.

OPA began with controls on coffee and sugar, supposing that it could reach into every office, every warehouse, every shop and every home and watch and regulate every transaction. The same thing was done with meat. OPA was in the hands of men who knew little or nothing of the meat industry.  

OPA began with controls on coffee and sugar, supposing that it could reach into every office, every warehouse, every shop and every home and watch and regulate every transaction. The same thing was done with meat. OPA was in the hands of men who knew little or nothing of the meat industry.  

The corn farmer can sell his corn directly in the corn market or he can buy a cow and feed the corn to her. He decides what he will do by the price of corn. If he can get a better price for his corn selling it in the market he will not feed it to cattle. If the meat prices are more attractive he will turn his corn into meat. Planners allowed the price of corn to soar while holding down the ceiling on meat. The corn farmer sold his corn in the corn market. He refused to buy cattle.

The corn farmer can sell his corn directly in the corn market or he can buy a cow and feed the corn to her. He decides what he will do by the price of corn. If he can get a better price for his corn selling it in the market he will not feed it to cattle. If the meat prices are more attractive he will turn his corn into meat. Planners allowed the price of corn to soar while holding down the ceiling on meat. The corn farmer sold his corn in the corn market. He refused to buy cattle.