Evening star., 1946-06-30

vicious effect of the Taft amend
ment would be to slow up produc-
ton.
The only possible Justification
urged for all these Taft price in
creases is the claim that they are
necessary to encourage production.
Even If they did encourage produc-
ton, that would still be a terrific
price to pay for that increased pro-
duction-a price measured in suf-
fering and distress among people OF
moderate and low incomes.
The fact is. however, that pro-
duction would not be stimulated by
the Taft amendment, but would be
greatly impeded Nobody wants to
sell his goods this week if he can
get better price for them next
week. This is no mere theory. You
have seen it working day after day
for the last month or so, as people
began to believe that price control
might soon come to an end.
Holding For Higher Prices.
People who had cattle and hogs
to sell for slaughter for food have
decided to hold them for higher
prices. People who had clothing
for sale have decided to do the
same thing. So have people with
innumerable other commodities
which we all need so badly now.
incidentally. I have asked the
Attorney General to make an in
vestigation OF some of the factors
involved in our present shortages
to determine whether anyone is
criminallv responsible for them and
TO place the responsibility where it
belongs.
These instances of Withholding
goods from the consumer would be
multiplied thousands of times under
the Taft Amendment. Production
and deliveries would be slowed
down waiting for price increases.
This would create bottlenecks of
essential materials and essential
parts which would bring production
lines to a halt. BY the time they
started up again there would be
new applications for price increases
and additional waiting for greater
profits. Labor would be penalized
by loss OF employment Consumers
would be penalized by lack of goods
and ever rising prices. Farmers
would be penalized by higher prices
for what they buy and reduced
markets for the things they sell.
Wouldn't Aid Production.
1t is a cruel jest to say that the
TAFT Amendment would aid pro-
duction. AS l also pointed out this
morning in my veto message. the
Taft Amendment would wholly de-
stroy our program Of wage stabiliza =
ton which has been built up since
VI Day. It would destroy the use
fuiness OF the Wage Stabilizat ton
Board.
The result would be the begin
ming OF an inevitable spiral of un-
controlled inflation-a race be.
tween rising wages and rising prices,
Far-sighted leaders Of both labor
and management know that
nothing can be gained-and everv-
thing lost-by simply letting prices
and wages chase each other.
Despite the total impossibilitv OF
stabilizing other prices under this
bill. l would have hesitated to dis
approve it if I had thought it gave
some real protection against soar
ing food prices and rents. We have
learned, however, that higher prices
for the things that farmers and
landlords buy, would inevitably force
up food prices and rents. In both
instances, serious increases would
be forced upon us by the hard facts
OF business and economics.
Presents Facts.
I realize that the great ma jority
OF our people do not have the facts
and figures that must be considered
IN order to know what a bill like
this would do. That Is why I am
speaking to you this evening. You
are entitled to have the facts be-
fore you
I want to make clear that nv
decision to veto this bill does not
mean any lack Of appreciation of
the sincere and tireless efforts of
the leaders and many other men,
bers OF the Senate and the House
OF Representatives to pass a work.
able prlce-control bill. I know that
manv members of both houses who
voted for the bill which was sent
10 me did SO with regret and only
because they had, at that time, no
opportunity to vote for a good bill
Now every member has a clear-cut
opportunity to show whether or
not he wants effective price controls
/ have submitted to the Congress
IN my veto message plan for price
control legislation for the compare
lively short period of time that it
Is still needed. The will of the peo-
pie Is still the supreme law of our
land. Your determination to retain
price controls and so prevent inf1a-
ton must be made known to the
Congress. The Congress is the ONLY
branch OF our Government which
has the power to pass law provid-
ing for proper price control.
Legal Restraints Lacking.
Now because Of congressional de-
lay we are faced with brief period
in which legal restraints on price
increases will be lacking. l have
urged the Congress to act imme-
diately and to adopt the kind of
bill which can be made to work.
But. In the event of delay, I know
that the United States can depend
upon the patriotism and good sense
OF its citizens. Therefore. I call
upon every businessman, every pro-
ducer and every landlord to adhere
to existing regulations. even though
for short nerind fhcy noov not