Evening star., 1942-08-27
Public Told 10 Expee'
Bills for High Taxes,
Forced Saving in '43
u. 5. Economists Worn
Steps Must Be Token
In Wartime Crisis

Steps Must Be Token
In Wartime Crisis
b. the Associated Press.
Government economists warned
the public today to prepare for dras-
tic tax and savings legislation early
In 1943.
Such steps. they said, were almost
inevitable in connection with the
stabilization OF farm prices and
wages which President a Roosevelt
has announced will be undertaken
soon.
One of the economists, Prof. Alvin
H. Hansen OF Harvard University,
who is special consultant of the
Federal Reserve Board on imitation
and other matters, put 1t this way:
we are piling up an avalanche
of purchasing power and we ought
to be building a dam to hold 1t.
think that the pending tax bill
tabout SO, 800, ,O00, 900 Of new taxes
ought to be passed as soon as pos
sible and about in January We ought
to be drafting much sleeper taxes,
compulsory savings and other
measures"
Higher Living Costs Seen.
A Treasury expert said wage and
farm price stabilization, taxes, saw
ings, price ceilings, rationing are all
necessary to prevent imitation. which
means a rise in the cost of living.
II the President puts the emphasis
at the moment on wages and farm
prices, don't get the idea that the
other things won't get attention,
too"
From the Budget Bureau came the
reminder that, Every 80 days we
are spending more money than the
Government ever spent before in
any previous 80 days in history.
This can't 60 on indefinitely with
out some steps to prevent all this
money being used to bid up the
cost Of living"
The question of organized labor
cooperation in the wage stabiliza-
ton part of the anti-inflation pro-
gram is expected to be decided at a
meeting scheduled for next Thurs
day between President Roosevelt and
Presidents william Green of the
AFL and Philip Murray of the CIO.
Preliminary Meeting Held.
The two labor leaders held pre-
liminary discussion with Mr.. Roose-
welt on the proposed new restric-
tions yesterday, when they arranged
next weeks meeting at which, Mr..
Green said, they hope to reach final
conclusions.
Mr.. Murray later announced that
the CIO executive council will meet
here Tuesday to discuss the wage
stabilization and price fixing pro-
posals. He and Mr.. Green were in
agreement that any super -board to
direct the battle against imitation
should have a labor representative
on it, and hope wage problems would
be left to the War Labor Board.
Mr.. Roosevelt expects to announce
the new moves he plans to control
the cost of living in q Labor Day
speech, September 7, If the Senate
and House are in session then to re-
ceive q special message on the SUBJ
ject. a IA
SABBATH Sees Action Limited.
Meanwhile, Chairman SABBATH OF
the House Rules Committee was on
record as believing that, barring any
congressional repercussions from the
Presidents message, the only other
subjects that will be considered at
this session will be taxes, Senate
changes in the servicemen's vote
bill. q new appropriation for defense
housing and few relatively minor
bills.
There is no reason why, between
the time we 60 back into regular
session early next month and the
middle of October, we cannot dispose
of everything that Is urgent ane
either adjourn or recess until thu
next Congress convenes," Mr.. Saoatf
said.
That program, he acknowledged
precluded consideration OF pending
labor and farm legislation, amonf
other things.
AS far as Mr.. SABBATH is concerned
the Rules Committee will sit on
proposals for investigation OF tn
Federal Communications Commits
sion. for subjecting labor unions Il
the Anti -Racketeering Act, for CIV
ing farmers loans up to 100 per cen
OF the parity price OF their basi
commodities, and for relieving wa
contractors from payment OF STAT
and local taxes on supplies used Il
connection with war contracts.
"No Time to Start Fuss"
This is a bad time to start fus
and trouble and create a lot OF dis
sension over the labor problem Nj
SABBATH commented. And it's nc
the right time to deprive the State
of their revenue by relieving con
tractors from the payment OF the
local taxes,
Neither does the chairman thin
the time proper to consider q pro
posal to develop the st, Lawrene
seaway and power project in co-oE
Grafton with Canada.
& Mr.. SABBATH pointed out that ever
bill and resolution not disposed
when the present session of Cor
press ends in the first week of Jar
uary automatically is dead, and d'
clared There will be lot OF the
not acted on"
=. II.-