Evening star. [volume] (Washington, D.C.) 1854-1972, 1946-02-18
Nation FACING
Explosion,
|BowIes Warns
Believes Line Can Be
Held; Asks Congress
To Extend Controls

Chester Bowles told Congress
today the Nation faces an infia-'
tionary explosion with pressure
up to the bursting point"
But he declared that President
humans new wage-price policy is
"a program that will work" with
little or no effect" on food, rent
or clothing prices if the bulge in the
Sterilization line is not permitted
to become a breakthrough.
I think it is a good program, and
mean to put everything I've got
into making it succeed" the newly
designated sterilization boss said in
testimony before the House Bank.
ing Committee.
Calls for Extension of Acts.
Mr.. Bowles appeared to urge ex-
tension at the earliest possible mo-
ment" of the price control and
other sterilization acts now set to
expire June 30. He also called for
action by Congress to stop the in
f1ation in the real estate market" if
the Administrations new homes
for-veterans program is to succeed.
And he said the food subsidy pro-
gram must be continued.
TeStifying before an audience that
packed the hearing room, Mr.. Bowles
struck out sharply at the National
Association of Manufacturers which
advocates removal of price control.
It's the NAM theory to let prices
go up to get production and then
let them collapse down to where
they ought to be-" Mr.. Bowles said.
He added that he could not see that
point of view.
Mr.. Bowles admitted there were
some mistakes among the million
individual prices OPA has set, but
he said the NAM charge that price
conrtol is interfering with produce
ton needs to be looked at with a
cold and flshy eye"
Prices Up to s Per Cent.
He estimated that the S5-a-ton
average price increase the Govern
ment has given the steel industry
will increase steel prices generally
about 7 to 8 per cent. He explained
that OPA now is working on appli-
cation of increases to individual op-
erations and said the main prob
lem will be in taking care of small
''nonintegrated companies who need
considerably more" than the average.
An exchange between COMMITTEES
Chairman Spence and Representa-
tive Crawford, Republican, Of Mich
igan enliVened the start of the
hearing. Mr.. Crawford said that
IS to IS per cent of his constituents
were opposed to extending OPA
operations. He asked Mr.. Spence
for assurance that the opposition"
will be heard before the. COMMITTEES
acts on extension A minute later,
after the chairman replied, Mr..
Crawford hotly accused Mr.. Spence
of "lecturing" him.
Representative Brown, Democrat,
of Georgia told Mr.. Bowles that
prices of products must be raised in
accordance with increases in wages
On all of the high-coSt producers
will be forced out of business.
Cites Speculative Fever.
The price chief acknowledged that
the new wage-price policy lis not a
perfect program" adding that "un-
der the circumstances which we face
there can be no perfect program
1t would be difficult, he told the
committee, Ito eXaggerate the grav-
ity of the inf1ationary crisis we face.
- Everywhere men are betting
on imitation. =
"A speculative fever has taken
hold of the country The pressure
in the boiler is up to the bursting
point. The lobbyists and the prof.
teers are licking their chops. It
is going to take firm and decisive
action if We are to hold this
country on an even keel
+ Moved Too Fast, He Says.
! Reviewing Government action
since VI day, Mr.. Bowles said that
looking back it is perfectly
clear that We moved too fast and
too soon in stripping off the wartime
controls"
| While he said the relaxed postwar
wage-price policy worked well ION
the whole" and that 100000 workers
received wage increases through
orderly" collective bargaining since
VI day, Mr.. Bowles added that
nonetheless the policy broke down
in a number of vitality important
areas"
Turning to the new program
which removes the six-month wait
ing period before industry can ask
for price increases to Offset wage
raises and provides that such boost:
conform to industry or area pat
terms, Mr.. Bowles asked himself
Does this mean general price in
creases throughout the entire econ.
omy?
"Emphatically it does not" he de-
clared, land it is vitality important
that we understand why this is so
First of all, let's remember that
the number of industries which have
been, or are likely to be, forced
1 below their prewar earnings for an,
reason is relatively very small. The
present pattern of wage increase.
can be-. and in many instances ha.
already been, established in score.
Eof industries with no price conse.
quences whatsoever.
1T is generally true of such in.
dustries as the food processing anc
petroleum industries where labol