Evening star., 1942-12-06
Leon Henderson
Has ThunkIess Job
By Ouen L. Scott.

| cropping out once again. This time, as
| in the past, those worries grow from the
| vast outpouring of money that the pres
! ent war involves.
An official estimate is that during
1943 the American people will have
available for spending the fantastic total
of Silt 600 100000. That is the amount
| left over after all taxes are paid. At
! the same time, there will be an esti-
mated total of goods and services on
which these dollars can be spent of
little more than s75OOo,o 100000.
Here will be an extra $42 900, 900 900 Of
income. Much Of that income will CEN
ter in the lower income groups Of the
population who will be looking for ways
in which to spend it in order to obtain
| goods that they never could obtain when
| their incomes we're not so large.
1t Is in this situation that imitation
danger lies. Masses of the people may
start bidding against one another for a
limited supply of goods When they do
that the lid can blow off prices
There are two treatments. both of
which mus be applied if wartime infla-
ton is to be avoided. Both trea tments
| are annoying. sometimes painful and
| always unpopular. One is drastic taxa
ton of incomes to drain eff the surplus
! The need this time is for an estima ted
$4,000 900 900 additional in taxes or IN
| forced savings over and above the drastic
| taxes to be applied to 1912 incomes. The
second treatment is that of rationing
available goods. This treatment will
| have to be used on a broad scale during
| 1943.
In Congress, however, there is some
thing approaching revolt both against
taxes and against rationing. This revolt
really may become serious in the new
Congress, many of whose members will
think that they were elected because of
popular opposition both to high taxes
and to rationing. The result Is that
Henry Morgenthau. as Secretary of the
Treasury, and Leon Henderson, as ad-
ministrator of price control and of ra-
tioning. are in for trouble.
The point to remember, as most dis
interested bystanders see it, is this:
These men are trying to do only what
has to be done. The Nation would be
far more unhappy and in far more dan
ger OF future trouble If it accepted in
faton than if it accepts high taxes and
rationing. Imitation would add disas-
trously to already high war costs and
would be followed by violent defiation
after the war.
A realization of that fact, however,
does not end the sharpshooting that
Is to be directed at the men who must
apply the unpopular anti-infation
remedies
Mr.. Morgenthau, to divert some of
the fire from himself, is calling On
James F, Byrnes, the Presidents eco
nomlc stabilizer to help him in Con-
gress with his tax problems Mr.. Hen
derson is all set to stand up to the
| storm that is coming his way. He is
ready to stand or fall on the record he
| makes. ~:f .f~. fr~,eav-r-.
| 1t is here that it becomes important
for the people of the country to get the
| record straight. Otherwise Leon Hen
derson may be counted out by Congress
and the public for situations that are
| not OF his making At best his lob of
Denying millions of people the things
that they want is not going to be as
| popular in the future as it has been in
the past. And very many members of
Congress are convinced that rationing
| and price control annoyances accounted
| for the political overturn in the No.
| vember election.
There Is admission by most officials
| concerned that rationing experience has
not been what 1t might have been.
Gasoline rationing as a means of con-
serving rubber was delayed so long that
/ the public came to doubt its need. Fuel
Oil rationing was delayed and bungled
until oil users in the East now face a
very cold winter. Coffee rationinp was
held up until reserve stocks had been
sold to hoarders and the Nation as
| whole has had to accept a smaller
than-needed ration. There is going to
be difficult time with meat rationing
and rationing Of dairy products.
Investigation reveals, however, that
all this is not the fault of Mr.. Hen
derson.
In the case of gasoline and rubber.
Leon Henderson is on record as recog-
| nlzlng the need for rationing manv
months ago. If his advice had been
followed the rations probably could have
been more liberal than they now are
because there would have been planned
accumulation and distribution through
out the country. However, decisions on
what commodities are to be rationed.
and when, are not in Mr.. Henderson's
| hands.
| The case of fuel oil is even more clear.
Mr.. Henderson foresaw that the East
would face an acute oil shortage. He
advocated an early start of rationine
He also urged that fuel oil stocks be
built up by limiting shipment of gaso-
line into the Eastern areas. He was over
ruled by the War Production Board and
the petroleum co-ordinator, who held the
power OF decision. The result is that
winter has settled down and house,
holders do not even have their indi-
vldual rations in most instances. Ra-
uonlng officials want it understood that
this is not their fault.
| 1t is much the same storys in coffee
Mr.. Hendersons Office of Price Admin
Stratlon wanted months ago to ration
coffee at the store level in order to con-
serve stocks and to prevent boarding.
Thls OPA view was not accepted by the
! H..