President Franklin D. Roosevelt Defends His New Office of Price Administration, Set Up to Control Rents and the Availability and Price of Commodities on the Verge of World War II

“My administration has sought from the outset to restore agricultural prices to levels which would enable our farm people to share equally with urban people the goods and services of their joint effort…But neither…can we ask our consumers to bear inordinate increases in living costs. Moreover, unless we act promptly to check the inflationary tendencies in evidence all about us, agriculture itself will be burdened with rising debts and higher costs, as it was following the last war.”

In the spring of 1941, the world war was raging and getting ever closer to American shores. President Roosevelt felt the need to protect rents from inflation, and control the availability and price of commodities that were or were likely to become scarce. For example, Japanese occupations in the Far East had made it impossible to get rubber from plantations in the Dutch East Indies, and what little rubber was available in the United States needed to go straight to airplane and munitions factories. So in April 1941, FDR established the Office of Price Administration to “stabilize prices and rents and prevent unwarranted increases in them; to prevent profiteering, hoarding and speculation; to assure that defense appropriations were not dissipated by excessive prices; to protect those with fixed incomes from undue impairment of their living standards; to assist in securing adequate production; and to prevent a post-emergency collapse of values.”

Just weeks after Japan attacked Pearl Harbor and dragged America into the war, the Office of Price Administration initiated its first rationing program in support of the American war effort. It mandated that from that day on, no driver will be permitted to own more than five automobile tires. Tires went right into war manufacturing.

Some were concerned about the impact of these controls. A. Leonard Allen, a member of Congress from Louisiana who represented his district from 1937-1953, was among those who were concerned about what harm the limitations might bring to farmers. He wrote the President, who responded at length about his policy and intentions, insisting that he favored strong prices for farm goods but wanted to protect consumers against inordinate increases in living costs.

Typed letter signed, on White House letterhead, Washington, August 30, 1941, to A. Leonard Allen. “I have your recent telegram regarding the activities of the Office of Price Administration and Civilian Supply.

“May I assure you that I am not insensible to the need for fair and equitable treatment for agriculture in any kind of price control to be undertaken in this emergency. My administration has sought from the outset to restore agricultural prices to levels which would enable our farm people to share equally with urban people the goods and services of their joint effort, and we do not propose to deviate from that objective. But neither, on the other hand, can we ask our consumers to bear inordinate increases in living costs. Moreover, unless we act promptly to check the inflationary tendencies in evidence all about us, agriculture itself will be burdened with rising debts and higher costs, as it was following the last war.

“As you undoubtedly know, farm prices are approaching parity levels and for some commodities have gone beyond parity. Congress has passed, and I have approved, recent legislation authorizing loans on cotton to 85 per cent of parity.”

“Pending the passage of price control legislation, the Office of Price Administration and Civilian Supply is operating under Executive Order. In every case where it has acted, the purpose has been to check unwarranted, speculative price increases which profit the few and work hardship for many. I can assure you personally that its action has been based on as thorough a study and consideration for all interests as its facilities would permit. If mistakes have been made and inequities perpetrated, I want them called to Mr. Henderson’s attention. I’m sure he would welcome whatever counsel or criticism the members of Congress wish to convey regarding the activities of his Office.”

This is as good a letter on Roosevelt’s policy goals as you are likely to find. It comes from Allen’s scrapbook and has never before been offered for sale.