Evening star., 1937-03-18
FEDERAL BRAKES
SEEN BOOM CURB
Government Controls Held
Most Likely Check on
Rising Prices.
~ the Associated Press.

~ VIC ASSOClsteO PgeSS,
Official reference to potential dan
gers OF business boom brought fror,
Federal fiscal experts today the asser-
ton that Government controls could
effectively brake the upward spiral
Of prices.
Secretary Wallace contended, how
ever, the Government has power to in
huence but not to control industrial
booms.
"All Of us want stability" he said
Most Government economists agreed
the price climbs would continue unless
conditions change. They said grad
ual rise probably would be beneficial
but sudden upturns out of line with
stable economic relations would be
harmful.
Financial experts emphasized that
no definite program has been drawn
up, but listed these possible methods
OF checking price increases:
]. Balancing the budget, as suggest
ed by Chairman Eccles of the Federal
Reserve Board, with increased taxes
on income and profits "if necessary"
Would Lower Some Tariffs.
!. Reducing tariffs on those goods
which lead the price upswing.
3. Extending Federal control Of
wages. hours and corporate practices
to offset "monopolistic practices bv
certain groups in both industry and
organized labor" which Eccles said led
to higher prices.
Discussion of boom signs on the
business horizon followed Eccles'
declaration that "infationary price
levels" would have disastrous effects
Some Congressman wondered how
ever, whether Eccles was sending up
an administration trial balloon" to
test the sentiment of legislators and
the public when he suggested budget
balancing with higher taxes if neces-
sery,
Informed persons said he discussed
the sharp uptrend of price indexes
with the President last week.
The immediate congressional reac-
ton to Eccles' statement was against
increasing taxes. Democratic leaders
d
Congress of avoiding further levies.
Business Urged to Act
Secretary Roper asked business
groups yesterday ito assume their
proper responsibilities for safeguard
ing and protecting our future eco
nonlic progress" by independent ac-
ton to prevent unwarranted price in
creaSes.
we must not let our optimism
cloud and obscure danger signals. I"
Roper said, after reporting that busi-
ness is at least Is per cent better
than year ago.
The American Federation of Labor
said danger signals" of another de-
preston are already visible, and as
serted the only preventive is mcreas-
Ing wages and keeping prices down.
The Bureau of Agricultural Eco
nomics reported ground loss" from
strikes and floods IN December and
January has already been regained.
1t added that developments which
might contribute to a serious inter-
ruption of business activity in the near
future are existing and potential labor
disputes in important lines of activity
and increase in cost which might
interrupt construction"
Appealing to business groups ito
assume their proper responsibilities
for safeguarding an protecting our
future economic progress" Roper sug-
gested a series Of local, regional and
national business conferences for a
thorough study Of the situation.
Il would like to know" Roper said
at a press conference yesterday after
noon, ito what extent war prepara-
tons abroad. for example, are affect
Ing our production, especially of such
products as steel. We should deter
mine for the safety of business wheth-
= er the factors entering increased pro-
cuction are normal or abnormal"