Evening star., 1943-07-04
Subsidy Veto Message
With Daily Evenins Edition.
,HEODORE w. MOVES. Edit.

Subsidy Veto Message
Although the President, in vetoing
the legislation through which Con-
gress sought to bar his subsidy pro-
gram, again served notice that we
must be prepared to accept sub
stantial cut in our accustomed
standards of living, there is little in
the message to indicate that the
country as a whole is going to be
called upon to make any real eco
nomic sacrifices.
Mr.. Roosevelt stated flatly that as
Of today the aggregate net income OF
farmers, like that of workers, Is
larger than ever before. In the
midst Of war these groups, from the
standpoint Of income, are better oil
than ever before. And the Presi-
dents subsidy program, when re-
duced to its essentials, will serve still
further to improve their position in
this respect.
In his discussion of the wage ques-
ton the President was not very
specific. He did touch upon the fact
that many workers, through wage
Increases and overtime payments,
have a surplus of purchasing power.
But there was no estimate OF the
number of persons in this class, and
no express recognition of the fact
that average income has increased
far in excess of the rise In living
costs. Mr.. Roosevelt based his de-
mand for consumer subsidies on the
proposition that simple justice re-
uuires the Government to restore the
balance that existed between wages
and prices at the time the stabiliza-
ton program was launched, but this
Is contention which loses its force
when the Government looks only to
the increase in wage rates and ig-
nores the actual increase in earnings.
With respect to those whom the
President called the "unorganized
millions"-the men and women
whose real earnings have not kept
pace with the rise In living costs
the case is different. They have suf-
fered as result OF the Governments
failure to stabilize prices, and the
Government has a responsibility to
provide relief for them. But there Is
no equitable ground on which the
justification for relief in this case
can be broadened to cover the case
of those whose economic position has
improved since the beginning OF the
war. And there are more millions OF
men and women in this class than IN
any other.
Mr.. Roosevelt also took note OF the
fact that an increase in consumer
spending power, which is already tar
In excess of the available supply OF
consumer goods, is contributing
factor to imitation. This being the
case, it is obvious that any success
which the administration has with
its price rollbacks will simply add to
the already excessive volume OF con-
sumner spending power. II prices
should be reduced by ten per cent,
for instance, the money which peo-
ple thereby would not need to spend
on food would be available for them
to spend on something else. Unless
this new surplus should be absorbed
by taxes or savings, it would simply
md its way into the inflationary
stream.
The picture is not without It's
bright spots, however. One is the
new firmness which the admin1stra-
ton has shown in resisting wage de-
mands. Another is the emphasis
which the President put on the use
of production subsidies and subsidies
to prevent further increases in living
costs, as distinguished from subsi-
dies to roll back the cost levels
already attained.
Furthermore, Mr.. Roosevelt stressed
the fact that subsidies to hold living
costs down and protect farmers
should be applied "only in strictly
limited and clearly defined circum-
stances" If this is to be the actual
nature OF the program, and II it IS
accompanied by firm wage and fiscal
policies, it may do some good and
can hardly do great deal OF harm.
In any event, Mr.. Roosevelt has In
sisted that he must have this power,
and now that he has obtained 1t over
the opposition in Congress the re-
sponsibility for its employment is his.
The Bergman Exhibit
The exhibition Of original Berry,
man cartoons at the Corcoran Gal