Off with the Lid

THE DOMINION Off with the Lid

All wage and salary controls were dropped by the Dominion Government last week. They had been so badly battered in six months of strikes and increases granted by War Labor Boards that abandonment was more or less of a formality. Nevertheless, Prime Minister Mackenzie King shrewdly made what political capital with labor he could out of it by making the announcement while in Quebec City for the Liberal gathering (see below).

With wage controls gone, the big question was: could the Government keep modified controls on prices? The answer, as of this week, was that Canada planned to keep such controls for another year despite U.S. experience. The U.S. had found that when it abandoned control of salaries and wages, price controls had to go too.

But in Canada, organized labor was reasonably well satisfied with recent wage boosts, and no one expected another round of demands for many months. By that time, Price Boss Donald Gordon hoped that supply & demand would keep prices in line. Another factor: a recent poll of Canadians showed a majority favored price control.

Nevertheless, as a safeguard, the Government intended to continue rationing of meat, butter, sugar and preserves for many months. The last wartime restriction to go would almost surely be rent control. As far as any one could see end of that was still several years away.

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