Evening star., 1946-04-28
| |HendersonDeno
Fight by Businessmen
On Price Control

| DCSlolOll DuSilICoStllCh w
fight extension of price control was
described as "deplorable" and bad
business judgment" by former
Price Administrator Leon Hender-
son yesterday in speech before
the newly formed New Council of
American Business at the Hotel
Statler.
He said attempts on the part of
business to throw the country into
period of imitation would revive
the boom or bust" economy which
brought on the depression. of the
1905. He added that the hope of
business lies in getting men into
Congress who will see to it that
fiscal policy and tax laws are de-
signed to maintain steady pur-
chasing power throughout the post
war period.
Controls Supported.
During the day the council, whose
membership has been drawn from
the ranks of small business, unani-
mously resolved for extension of
price control for one year, without
Gripping amendments"
The group. which has petitioned
President Truman to veto the
House version of the OPA extension
bill and has ranged itself against
the National Associate of Manu-
facturers, said that abandonment
of controls now would blow up the
economy, destroy thousands of
small independent businesses and
undermine purchasing power"
The former OPA chief, who was
key man in the Roosevelt admin
! istration, made his remarks less
than "a hours after a successor,
Price Administrator Paul H. Porter
addressed the same group and
| damned" those who look back to
the old system of first feast and
then a famine.
He said that proper manipulation
of Government super budgets" by
members of Congress less narrow"
than those now representing the
people could insure the continuing
value of the dollar and keep enough
dollars in the pockets of consumers
to stimulate healthy business COM
petition.
Congress Blamed.
"We have a Congress unSuited to
dealing with fiscal and monetary
powers" he said.
Describing himself as New
on ~
Mr.. Henderson said tax laws, in
cluding social security levies, anti
trust regulations, other Government
business controls and Government
spending should be so varied as to
act always as a Counterweight
against an economy of boom and
bust cycles.
| For instance, he explained, when
times are good, social security taxes
should be pressed and even social
security appropriations made. When
times are bad this form of taxation
should be reduced to raise the pur-
chasing power of the consumer and
revive business.
To date the factors which pro-
duce cycles have not been changed
and Congress seems to want boom
but is not prepared to deal with any
subsequent downslide which may
! occur.
! Other Resolutions.
During the day the council also
adopted resolutions urging:
l. That Congress pass new legis-
lation with teeth and stronger
jaws" to deal with monopolies and
international combina tions restrain
ing independent trade.
2. That atomic energy be made
generally available to business
under monopoly civilian con-
troll"
8. That the Commerce Depart
ment be enlarged by passage of the
Bailey Bill, which would give the
department funds and authority to
furnish information, statistics and
scientific aid to private business.
Last night Senator Taylor, DEM
ocrat, of Idaho and three council
representatives called for extension
of price control in a prepared joint
broadcast.