Evening star., 1942-07-03
A Losing Bottle

IOSihS SAAeS
One of the most critical battles of
the war-the fight against initiation
is being lost at pace which should
cause deep and widespread public
concern. And it Is being lost for
such a variety of reasons that no
single remedy can be expected to
turn the tide.
The most conspicuous cause of the
failure at this time is the open break
Henderson and Congress. A few
weeks ago Mr.. Henderson seemed to
be winning favor on Capitol Hill.
Now he is in the legislative dog
house" and there is hardly a men,
ber in either branch or either party
with good word to say for him.
The explanations Of this breach
are many, including both political
and temperamental factors, but the
reasons for the bad feeling, rela-
lively speaking, are unimportant.
The significant fact is that the peo-
pie of the country are going to be
hurt, and badly hurt, unless there
is turn for the better.
Congress has attempted to deal
with Mr.. Henderson by cutting the
appropriation for his office to point
where, according to the price ad-
ministrator, it will be impossible for
OPA to carry out its functions, which
include the maintenance of price
ceilings, the rationing of scarce goods
and the control of rents in defense
areas. All three of these functions
are vital. If they are not performed
in an efficient and effective manner
the people, and not Mr.. Henderson,
will be the principal sufferers. Con-
gress should keep this fact in mind.
The row over the appropriation
for OPA, however, is but one of the
reasons why we are losing the battle
against imitation. Another is the
failure of Congress to enact legisla-
'tion to keep farm prices down. In
stead of dealing realistically with
this phase of the problem, Congress,
under the spur of the Unsuitable farm
bloc, has deliberately sought to raise
farm prices, and is still engaged in
that effort. Still another reason for
which Congress must assume re-
sponsiSility is the inadequacy of tax
legislation now in process of enact
ment. The tax bill as approved by
the Ways and Means Committee is
severe, but it will raise considerably
less revenue than requested by the
Treasury and it will fall far short
Of having the antiinflationary
effect which might be achieved
through the adoption of drastic tax
legislation.
The fight against imitation also Is
being lost because the administra-
ton, for political reasons, has refused
to adopt firm policy against un-
warranted wage advances. Congress
is not responsible for this deficiency.
The President and his advisers have
refused to let this phase of the prob
lem go before Congress, preferring
to deal with it in their own way, but
they have done virtually nothing to
prevent the general wage advance
which now seems all too imminent.
So far as its inf1ationary effect is
concerned, there Is no difference
between rise in wage levels and
an advance in farm prices. Both
add to the cost of production and
tend to destroy price ceilings i'm
posed without taking these added
costs into account. Mr.. Henderson
would meet this difficulty by paying
subsidies to businessmen caught be-
tween rising costs and fixed prices.
But this subsidy proposal is a de-
vice which merely conceals the
weakness in the price-control struc-
ture. 1t might be successful for
time, but in the end it could only
result in saddling the public with
the expense of preferential treat
ment for minority pressure groups.
Without a doubt, the inept han
ding of this whole problem is the
most disheartening phase of our war
effort. And it is the more dis
couraging because it is clear that
Congress and the administration
know what needs to be done, but
have nevertheless failed to take the
necessary steps. Furthermore, as
matters stand at this time, there is
little reason to believe that these
necessary steps will be taken unless
and until public opinion demands
that they be taken. The question is
whether this aroused public senti-
ment will develop before or after the
full impact of imitation has been felt
by the people.