Evening star., 1946-01-04
Trumun's S Powers Over
Economics Held Ample

Economics Held Ample
Writer Sees Fear Of Unpopularity
in Passing Issues to Congress
BY David Laurence
President Trumans analysis OF what
k blocking economic progress at the
moment places the responsibility on
Congress, and he asks the American
people TO put pressure on the legislative
body. But his explanation viii be dis
puted.
The truth is that Mr.. Truman is
himself responsible for the present un-
balanced economy. His lack of leader
ship and his failure to hold the scales
even Is forcing the United States into
an era of imitation which can be disas-
trous. When the President retraees his
own steps and reasserts wartime controls,
he viii find himself In position of
leadership sufficiently powerful to deal
with all contingencies Mr.. Truman in
his message says:
we are all anxious to eliminate con-
trolls just as rapidly as we can do SO.
The steps that we have already taken
show that. But price and rent con-
trolls will have to be maintained for
many months to come, IL we hope to
maintain q steady and stable economy.
The line must be held"
Yielded to Bad Advice.
Yet the President must know that
one of the big elements In prices is
labor cost and that there simply can
not be "a steady and stable economy"
unless all factors are regulated, includ-
ing wages. The nonchalanee with
which Mr.. Truman cast out the War
Labor Board and the entire wage and
salary stabilization policy last August is
the real cause of the present crisis in
labor management relations.
The administration forced the crisis
by precipitating industry into a situa-
ton where it was faced with new
demands for wages before it could find
out what the peacetime production
levels would be. If ever there was o
situation that called for gradual transi-
tion from wartime to peaeetime condi-
tions, it was in the handling of wage
costs. An extension OF the stabilization
program was absolutely imperative, but
Mr. Truman yielded to bad advice and
thought he was doing a popular thing
by throwing of the wage controls.
Has Power Over Wages.
Nobody likes wage controls any more
than they like price controls. But the
President still has the power, without
any further action by Congress, to
issue an executive order stabilizing wage
rates and putting an end to the wage
imitation spiral that threatens to un-
| dermine the entire economic structure.
| Along with this must come price con-
| trolls, too, so that the cost of things
| purchased for household use will not be
out Of reach of the workers income. A
promise of eventual release of controls
| should be based on the time when
production shall have reached satisfac-
tory levels.
The Presidents proposal for q fact
| finding board to get at the facts in
labor disputes is desirable thing, but
| Mr.. Truman rests too much on that
| proposition. Along with it must go
some other reforms, such as writing
| of the rules of collective bargaining
and some means of ending the illegal
| picketing that makes bad feeling and
| causes management to become lawless,
| too.
Could Challenge Congress.
[ Mr.. Truman will not get very far
| by criticizing Congress. That body re-
| spends to public opinion, and at the
moment there are no signs that the
public is any better informed on where
the responsibility lies for the present
crisis than is the President. Congress
is divided because it knows the Truman
proposals are inadequate and yet it
fears, because of the power of pressure
| groups, to supplement them
On many an occasion when the war
was on, the Chief Executive found it
necessary to use emergency powers
without going to Congress for specific
authority on every question. AS long
as these blanket powers are still in
existence, Congress would not venture
to repeal them when they are used to
steady and stabilize the national
economy.
Mr.. Truman would be on safer ground
If he asserted his wartime powers and
then challenged Congress to repeal
them without providing any substitute
plan. AS it is, the President has all
the power necessary and yet declines
to exercise it for fear it would be
unpopular. He nevertheless asks Con-
gress to take the responsibility for
adopting program that he must real
ize doesn't go to the root of our eco
nofnic difficulties.
/ (Renrnductinn RIrhfs Rararu.a