Evening star., 1946-02-25


them must have a primary interest
In the soundness of their invest
ments. Given even rudimentary in
telligence they are bound to be
against anything that undermines
their value or lessons their security.
Now, no one denies that the great
est threat to every form of fixed
income is imitation. With imitation,
the cost of living goes up and the
purchasing power of the dollar
goes down. With uncontrolled in
f1ation, the dollar becomes debased
to the point of having no value at
ALL and bonds, insurance policies,
savings-bank deposits and all other
securities become worthless. A
period of complete economic chaos
then ensues in which everybody
suffers-but, of course, most deep
ly. the poorer classes.
Imitation Possible.
1t Is the custom to say that we
will not have that kind of imitation
here. And, Of course, we ought not
to have it and there is no excuse
for having it. Nevertheless, it is
conceivable and it is possible. With
our Federal finances out of control
as they almost are now, once we
get into that upward spiral of rising
prices and rising wages, inherent
In the present situation, there is
slight chance to avoid it.
Considering these facts, it would
seem that solely out of self interest
the holders of Government seouri-
ties, insurance policies and savings
bank accounts would cease taking
a passive interest in what goes on
in Washington and become as ac-
tive as they know how 1t is clear
that the two essentials are truly
balanced Federal budget and unin-
terrupted industrial production.
Certainly, the many millions of
small investors are vitality concerned
in seeing that nothing is permitted
to block these achievements.
To this end the weight of these
concerned citizens ought to be solid
ly behind legislation in Congress
that will find some sound way of
settling abor-industrial disputes
which strangle the economic life of
the country and affect the necessi-
ties Of life for the people. Also
this weight should be unwaveringly
against Federal waste and extrava-
gance and in favor of rigid Gov
ernmental economy.
Indignation in Order.
Yet, 1t is not eXerted in either di-
rection. A labor bill, not as COM
prehensive as it should be but to
which few sound objections can be
made, has passed the House but |
has a poor prospect in the Senate
where the hint is given that the
CIO Senators, who most violently |
denounced the filibuster on the FEPC !
bill, will f1libuster on the Case bill
If 1t seems likely to go through.
There should be real indignation
about this from the aforesaid
100000 bondholders, etc. - but
there has been small sign of such.
Equally, there should come from
the millions of small holders vigor-
Gus protest against the phony econ
omy preached by the Truman
budget message, which isn't econ
omy at all but extravaganza.
Not only are there more civilian
jobholders on the pay roll today
than there were when the war
ended, but there is no plan for re-
ducing them-quite the contrary.
In addition, it is proposed to spend
more in every department in the
year beginning July l than was
spent in the year ended June 80
last. A recent authoritative esti-
mate Is as follows: Agriculture, up
22.5 per cent; Commerce, up 101.2
per cent; Interior, up Ats per cent;
Justice, up 1868 per cent; State, up
1442 per cent; Treasury, up SO per
cent; War civil functions), up I'LL
per cent.
Trend Toward Spending.
IN brief, we are not going to re-
duce the Federal pay roll; we are
not going to reduce Federal costs;
we are not going to reduce the Fed
eral debt. There Is literally nothing
In the Truman fiscal plans, as one
man remarked, ito make any civil
service job-holder turn over in his
groove"
AS under Mr.. Roosevelt, the trend
Is toward spending, not saving. The
gestures toward economy are feeble
and meaningless. The new State
Department propaganda experiment
to cost $30,0O0,000 has the Presi-
dents support. So has the $7O,0OO,-
600 UNO site and plant for which
We will chiefly pay, though Senator
Vandenberg, strong UNO man, in