PRICES: Grass in Worth Street

For the first time in a month, the cotton gray-goods market in Manhattan’s Worth Street did business this week. Reason: Leon Henderson decided under pressure that the gray-goods price ceiling he set last month was too low, issued his first order revising an entire industry ceiling upward.

The old ceiling set maximum prices at about 15% less than late June levels, pegged print cloth at 39¢ a lb. Manufacturers, who said this made no allowance for higher costs of raw cotton and labor, simply refused to sell. Grass grew in Worth Street.

Now the maximum for print goods is upped to 43¢—a compromise between the original ceiling and the 46¢ demanded by rebellious manufacturers. Other maximums go up in proportion, to levels of the last week in May.

While Henderson was thus compromising a rebellion against his price orders, he was also busy trying to get the law passed which will enable him to enforce his orders, rebellion or no (TIME, July 21). President Roosevelt finally came out in favor of immediate price legislation, and Leon sat down with Congressional leaders to work out a bill that Congress would be willing to pass. Obviously Leon would have to compromise here too.