Imperial Valley press., 1937-04-21
News Behind the News
Initiation Statement a Warning
Neu Deal Won't See Prosperity Ruin
ed FOrestaIling Economic Collapse

WASHNGTON-Roo chief purpose in
his recent statement as to "nflationary' prices
of steel, copper, and other basic products was
to serve notice that the administration would
not stand idly by and see prices ruin prosperity
The promise that the government would cur
tail expenditures for purchase OF durable goooS'
and emphasize expenditures which would be re-
flected in consumer goods purchases, was the
first official step toward forestalling the econo-
mic collapse which many believe is threatened
by the rising price level Almost certainly, there
will be other steps taken.
Aside from the obvious effect of the promise,
it was also meant as a reinsurance to buyers
When in doubt as to whether prices will keep on
going up many accustomed to buy ahead
thereby accelerating prices to an extent which
would have been avoided had they purchased
normally.
Last month this writer outlined a 10-point
plan which had been proposed by admnistra-
tion economists to put the brakes on disastrous
price initiation. The President has now moved
on one front, then described as Pressure thru
ALLEGATION of government purchases" Other
points, it may be interesting to recall, proposed
federal action against monopolies and colluslVe
bidding; selective taxation on profits patent
law revision; encouragement of consumer CO.
operatives; tariff reductions and government
yardstick production to keep down prices OF
things the government buys.
Perhaps you overlooked it, but the Federal
Trade Commission has just ordered General
Electric, Westinghouse and two other companies
to cease price fixing with respect to turbine gen.
orators 1t has also entered price fixing COM
plant against the Cast Iron Soil Pipe Assocla-
ton and 35 companies. (The government bought
Sl80O000O worth of such pipe last year, These
incidents and similar actions now planned are
not unconnected with the administration often
sive against skyrocketing prices.
You may also look for abolition or reduc-
ton of the four-cent excise tax on copper i'm
ports first imposed in 1882 and scheduled TO
expire June 80 this year. This tax has kept
copper imports out of the country.
Roosevelt complained about copper prices.
He said many mines could turn out copper
profitably at five or six cents pound and that
Others among them the great Anaconda OF Mon
tana could make profit at eight or nine cents
a pound. Copper lately has been selling at II
cents a pound and-according to the President
pushing up prices in all the durable goods
industries which it enters. Senator Wheeler of
Montana, long a reputed foe Of the Anaconda
company, angriy took issue, suggesting price
reduction would mean American copper miners
must compete with african slaves and MeXi-
can poems"
Just what can or will be done about steel
prices is not clear. Roosevelt branded steel
prices as much too high, owing to recent large
and rapid increases. The federal government
bought s25OO00000 worth of steel last year. Gov
curtailed but much is needed for the army and
navy Manufacture of some steel by the gov
ernment is possible but not yet probable.
Although Attorney General Cummings recent
ly said the Department of Justice inquiry into
collusive bids by steel companies was prac-
tically at a standstill, the President has sub
sequently asked him for report on progress