Evening star., 1941-05-17

uISJOIy Vi SU-CdIieu NCulOSl otlN
government-the statement is made
that threats of prosecution under
one set of laws will be used to force
compliance by businessmen with
orders by another agency of the
Government which has no sanction
OF law at all, namely the price
control bureau.
Briefly, the machinery set up is
10 put the Federal Bureau of In
vestigation and the Department OF
Justice on the track of any buSl-
nesses which the Office OF Price
Control thinks may possibly be vlo-
lating an antitrust statute. Con-
versely, what the Department OF
Justice may have in mind will be
submitted to the Office OF Price
Control for its advice in connec-
ton with the price Stabllization
program.
The procedure admittedly is to
"put teeth" into price control
orders that do not have the sane
ton of law Maybe the objective Is
n desirable one-to control or re-
press prices-but as long as Con-
press is in session it might be sup
posed that law-making would still
be left to the members OF both the
Senate and the House. The idea
that the citizen may be inhibited
by the decree of any Government
officer without sanction of law has
been abhorrent to the champions
of democracy and particularly true
liberals. It is much more in line
with the Fascist doctrine that the
state is all powerful and that a
legislative body is super1uous.
No Wage Control.
What is most surprising IS that
when the New Deal wants to get
after businessmen-and it is con-
stantly spreading disEust about
them and issuing threatS-there
seemingly is no lack of authority
and, if lacking, it is quickly sup
piled. But when labor gets out OF
hand, the New Deal says it is help
less. Even the suggestions that
Congress enact laws limiting the
right to strike are bitterly fought.
Labor also is encouraged to force
increases in wages which in turn
cause a rise in prices. But the ad-
miniStration evidently is getting
ready to squeeze the sellers OF goods
by forbidding price rises while at
the same time looking with favor
en- wage increases.
Just how there can be any price
control when there is no wage con-
troll is an economic mystery. Ger
tainly the New Deal has done Moth
ing to discourage wage increases
which are at bottom the main rea-
son for price rises Also with the
enormous amount of purchasing
power to be disbursed, demand will
cause prices to rise. So long as
nothing Is done to curtail demand
or to keep wage costs down, price
control will be next to impossible.
Even threats of jail sentences will
not do the trick. 1t never has.
Every inf1ationary period in history
has had in it some form of coercion
but human nature resists arbitrary
control and prices rise and the value
Of money depreciates.
The settlement of the General
Motors strike is another glaring
example of improper use of govern
mental power. The President ap-
pointed mediation board presum-
ably to mediate disputes but the re-
suit has been that the imitation
spiral was given an impetus. Ac-
tually the 10-cents-an-hour in
crease-the really important de-
mand of the c. I. o. union-was
approved by the Presidents own
board thus putting the Govern
ment itself on record as favoring
wage increases at time when pre-
sumably the same government
wants to keep prices down.
Excuse Called Lame.
The mediation board gives lame
excuse for its action. 1t says wage
increases are being granted in
otner related industries but it also
conceoes that auto workers for
General Motors are paid higher
wages than elsewhere in the in
dustry. Though the closed shop
issue was eliminated, it probably
will not be long before it will be
renewed.
Defense strikes are on the in
crease. The coal industry where
the closed shop prevails has not had
stability. Negotiations for a contract
are in a critical stage again and
there are threats from the C. l. o.
that another coal strike is i'm
pending.
Fully $50,0O0,0OO is involved in
the pay increases just granted Cen
eral Motors employees but the effect
will be felt in many other businesses
and industries. The increase
amounts to about $208 year per
man which is about 10 months full
pay for a draftee in the Army. How
long the Government will be able
TO maintain a semblance of ma
tional unity by its present tactics
Is conjectural. Persecution of busi-
nessmen who are the managers and
operators of industries vital to
national defense, discrimination
against the soldiers and sailors who
have left well-paid jobs to make
sacrifices for the Nation, and a
refusal to increase the taxes on
those earning $4,000 or under does
not seem to be fair method of
conducting democratic Government.
The America First Committee must
be chuckling nowadays. It's best
membership getters presumably are
the New Dealers and their DEGREES.