Evening star., 1941-08-01

NCiIO 1IllId I1Oll vi
Interruptions to
production due '''&
to strikes over David Lawrence.
the cost of living, the Presidents
communication is one of the finest
documents of his entire admins
tration.
But having proclaimed that each
group must cooperate in the pub
lie interest, that no group should
be exploited and no other group
should gain an advantage, the prob
lem is how to attain such a de-
sirable objective.
For several years men in the ad-
miniStration, notably Mariner Ec-
cles, chairman of the Federal Re
serve Board, has contended that
our economic system consisted of
so many inter-related factors that
1t was impossible to control one
without the other. To allow wages
10 skyrocket and exercise no re-
strictive influence while at the same
time costs were piled on costs which
could only be reflected in higher
prices to the consumer was to deal
piecemeal with a spiral that had to
be dealt with in overall fashion.
Includes All Factors.
There is. therefore, nothing start
ling or new so far as doctrine is
concerned in what the President has
to say. The moment planned
economy" is sanctioned at all, it
will be admitted that regulation
cannot omit any essential factor
During a war emergency planned
economy" becomes essential to sue
cessful mobilization of productive
power, facilities and materials AS
Prime Minister Churchill said few
days ago with reference to Eng
lands war economy, the state has
not gone totalitarian but has never
theless organized itself for total war
This merely means that where
Hitler rules by decree and the con-
centration camp, Mr.. Churchill rules
by the force of public opinion
which reflects the sacrifice of the
individual to the common cause.
Mr.. Roosevelt pointedly said to
Congress that the price control
power should be limited to the
emergency and terminated by pre-
arrangement when that occurs. He
exhorted all groups to cooperate.
Neither labor nor capital, union
leaders nor management executives,
can possibly take exception to the
fundamentals of the Presidents
message. Whoever supplied the
auxiliary memoranda and argu-
ments from which the President
drafted his message to Congress is
not only a straight thinker but if
he can remain at the Presidents
side and exert an equal influence
on the execution OF the plan pro-
posed, there will be a remarkable
gain made toward administrative
efficiency.
Human Element Enters.
Granting that Congress will agree
with the principles laid down by
the Presidents, the rub comes when
human beings are to be selected to
administer the powers that are to
be delegated by the legislative body.
No such powers have ever been
granted. In the World War they
were informally exercised. The ma
tional defense laws did not specify
a formula, but President Wilson left
it to Bernard M. Baruch to work
one out. And he did so very sue
cessfully, and business co-operated
Fundamentally.
1t is being reported that the Presi-
dent would look kindly on the sug-
eestion that a three-man board be
appointed. This doesn't sound &C
csrate because Mr.. Roosevelt has
hitherto wanted to see the power
delegated to the Chief Executive
who could in turn delegate to one
or more as he pleased. But Mr..
Roosevelt knows that price-control
legislation Is something extraordi-
nary and far more delicate than
any power he has hitherto asked. 1t
means control over individuals and
their businesses to degree equaled
not even by the tax collector. Con-
gress, once 1t delegates, cannot in
terfere in actual administration. 1t
will not be able to do anything for
the pressure groups. The die will
be cast and labor and management
and farmer and industrialist will
have to take their medicine as the
administrator or board hands it
out. Once the law is passed, Con-
gress will be bystander, too.
Leon Henderson has been ham
ding price control under the VOL
untary cooperation plan recently
set up by executive order. He Is
m economist who has had expert
ence in the N. r. A. and who until
last month served as a member Of
the Securities and Exchange Com
mission. He Is one of the hardest
workers and most conscientious Of
flcials Washington has ever had.
His critics, to be sure, are numer-
Gus and his manner in the exercise
Of power has not always been gentle.
But If he is to be the administra-
tor, he will have to acquire a COM
petent board of associates and staff
experts to help him.
1t is by no means one-man job
and Mr.. Henderson probably would
be the first to admit it. Who, then.
shall make the price-control poll
cies? Obviously the authority could
easily be used to further the New
Dnal reforr,, y,rouroyn th,,s roopor, -