The Waterbury Democrat., 1946-10-03
SteeImon UphoIds Controls
 Admits Lockinq
 Anti-infIotion
 Weapons to Fiqht

~~~@A PSAA4ONA ONO AAA AAAo AAAoO AAnA terly report to the President and Congress that he regarded price controls as the key element in the fight against imitation and, he ad- mitted, the Administration doesn't have much in the way of anti-in- flation weapons.
 Business itself could take the first and most salutary action to stem the threat of an economic col lapse by reducing prices-wherever possible-without reducing wages ''
 There can be no doubt" he added, that in some industries the profit position is such that prices could be reduced and profits still be maintained at a satisfactory level. This will be even more true in the coming year as volume in creases and costs come down"
 Steelman said that despite pay increases granted in many indus tries, gross weekly earnings of all workers in manufacturing indus tries dropped approximately 8,5 per cent between April, 1945, and July, 1946. This was largely due to cut backs in the work week, elimination of overtime payments and shifts from high-paying wartime to peace industries. For example, he said, the average employe whose take home pay was $4712 in April, 1945, took home only $43.7 last July
 AS for real wages, Steelman said, married man with three dependents now finds that the $36 a week he got in 1945 is worth only little more than $50 in terms of things he buys.
 '"ThiS downward trend in real wages should and will be reversed" he said. "Basically the only curse lies in the output of more finished goods"
 He warned that "a general round of large wage increases now can benefit only special groups, and in general will do SO at the expense of fellow-workers throughout the nation"
 After asserting that the govern ment would use every means at its command to snap the inf1a- tionary trend, he said:
 We find ourselves at the present time gravely handicapped in our fight against imitation through lack of adequate governmental machin- cry to cope with it."
 Some Tax Level Urged
 Taxes, he said, would have to be continued at their present high levels until the danger of imitation ebbs. But, Steelman added, this was up to Congress.
 When the Congress returns" he said, it will be necessary to ap- praise again the inf1ationary forces at work in the economy as one of the factors entering into the forma- tion of we'll balanced tax policy.
 He blamed the lack of adequate anti-inf1ation machinery on the 'impatience" of the American peo- pie to be rid of wartime controls. This, Steelman suggested, undoubt- edly was "one ot the reasons that impelled Congress to pass critical ly weakened price control bill"
 Our position is one of promise because we have an opportunity to move forward to higher levels of real income than any nation has ever achieved" he said. We have a chance to maintain high levels of employment for extended periods, and to progress toward higher levels of production and a steadily ris- ing living standard.
 Tn Cot RoVouno nif1icuIt
 But we do face an acute threat the danger that we will be un- able to shift from the present sit- uation where demand exceeds sup ply to one where demand and sup ply are in approximate balance, without falling to a point of equi- librium on a far lower level of in- come and production than we now have. The transition to an approxi- mate balance of supply and demand at high levels will be difficult, and the difficulties will be enhanced if there is 8 further rapid increase in prices"
 Steelman pointed out that prices already have advanced further in the three months since the original Price Control Act expired last June 30 than they did in the previous 38 months.
 "A further rapid price rise" he warned, might choke off demand. upset business stability and pre- cipitate an early and severe price collapse, with serious economic and social consequences.
 -.& AI.4 iS1 nfyyjl O employment to an all-time high ot 58 million in August, a drop in unemployment to 2,0O0 900, 8 record high of $167 7,000 100000 a year in income payments to individuals, and new peaks in business profits and farm income. Then he went on to say:
 Our satisfaction in achievement to date must be tempered by the knowledge that the present level of production and employment has been the product in part of delayed demand, backed by wartime sav- ings, and is not necessarily per- manent This fact must be given much more weight in the light of the price rise which has taken place in the last three months and the danger of its continuation in the future"
 Steelman attacked suggestions from some quarters that the best way to balance supply with demand is to let prices go."
 Peru has established an organiza- VI