Evening star., 1938-02-19
A Lesson in Economics
Presidents balance of Prices Conference Indicates
He Believes Government Should Have Control.

Roosevelt making q formal declara-
ton Of policy purpose, on the part
OF the administration, of bringing
about and maintaining . balance of
prices? I use the phrase "balan.e Of
prices" because I infer that Mr..
Roosevelt prefers this phrase rather
than control of prices"-though 1t
Is dindcult to see how he can achieve
balance" Of prices without exercising
control of prices. Both Mr.. Roose.
velt and Secretary of Agriculture WAL
lace always shy away from the terms
price control" and price fixing"
Both cling to the phrase balance of
prices" though to the average man
this seems to mean the same thing in
actuality. 1t is common trait of
dreamers to suppose they can make
words prevail over reality.
Whether 1t was Mr.. Roosevelt's in
tention to announce an important
public policy, do not know. To some
extent the care he exercised may have
been result Of recent experiences he
has had. A few weeks ago, speaking
oh-hand and informally. as is his
customary way at press conferences,
ne had made remarks, particularly one
about holding companies" which had
unfortunate interpretations and con.
sequences.
To some extent the Presidents pur-
pose may have been one of self tusti-
fication. He has been twitted a good
deal about having said, early In his
administration, that his purpose was
to raise prices-tdo it We will; and
then having said last April that prices
were too high; and finally having said
recently that prices ought to be high
er. 1t may be that Mr. Roosevelt by
his present unusual action. meant to
show there was no necessary incon.
slstency In his three different stats.
ments at different times. Actually
there was no real inconsistency. and
Mr.. Roosevelt did not need to concern
himself with justification. He did
dwell upon this, and said that the
only self-reproach he feels about his
last April statement that prices were
TOO high Is that he ought to have is
sued the warning earlier.
Should Have Control.
What will be the effect of Mr.. Roose-
velt's disquisition? A few newspapers
In large cities will print his formal
statement entire. and a complete sum-
mary of all that he said Smaller
newspapers will be obliged to conflne
themselves to comparatively short con-
densations. AS for readers, a very
small number of professional econo-
mists may read the Who'll. of what
the President said. A great many
readers will get little out of it beyond
a glance of the eye upon a headline
And who can write a headline which
would adequately and accurately epit-
omize that long and complex eco
nomic dissertation? Who indeed can
make condensation. at once accu-
rate and adequate, OF the Presidents
statement?
In due course the country is likely
to become familiar with the inplica-
tions of the incident. From this state.
ment. and from much other evidence,
there can be little doubt that the
Presidents attitude is one which thinks
the Government should have respon-
sibility and authority over prices.
There can be little doubt either that
he regards himself and his economists
as competent to exercise this author
ity wholesomely.
tcopyrisht, 1887