Detroit evening times., 1946-01-25
BEHIND
The NEWS
BY Paul
Malion


Congress are plainly evident no
deeper than the newspaper
headlines.
Ills plans 10 thwart imitation
wcrc greeted with an immediate
rising of the stock market in
expectation of initiation
News headlines on his mes
sage generally said. Truman
Calls for Action to Prevent In
flation.' The New York Times
account of stock price increases
of the following day was
headed: Imitation outlook Ad-
vances Stocks
The mart men simply did not
believe the program would stop
rising prices and neither do l.
How could any one?
If auto wages are 10 be hlked
1875 per cent and the cost of
steel increased by S4 a ton as
originally proposed, or more,
how can the selling price of cars
be kept from increasing? ? Steel
is the basic ingredient of autos
and labor the main cost factor
of their manufacture.
knotOinR souls in Congress,
therefore, wink their eye and
say prices WiIl sneak up as
result Of the Truman meas
ures noW on the fire, regard
less Of OPA or high WateT.
If Wages and basic mate
riaIs in general go up, can
prices be far behind
War experience Developed
many Woys in which price in
credses could be accomplished
indirectly II not direetiy-re-
duction Of quality, creation of
neW products Which cannot be
ee-cataIoeed, and many
others.
VET il seems no one objects 10
what Truman says, only to
what Truman does.
His recitation OF his purposes
drew no criticism from Congress
and little elsewhere.
The country evidently wants
the basic idea of high wage
price economy with full employ
ment, will pay high taxes and is
opposed to further imitation. SO
docs Congress. No one wants
denation
But the things Mr. Truman
proposes 10 do are simply not
generally in accord with his pur-
poses.
To think that costs can be in
creased without a price increase
is not the only strain upon av-
erage intelligence.
Mr.. Truman wants Com
gress 10 pass Immediately the
Go full employment bill.
pledging the government To
great expenditures, and is al
ready increasing practically
every appropriation for peace
activities OF the government,
even planning a new big wing
on the White House. and pro-
posing increases Of salaries Of
Congress-at time when we
are threatened with imitation.
Normal reasoning would call
for the opposite tactics of gov
ernment economy in a battle
against initiation.
4 GAIN, a main problem of
"A the fight against initiation is
10 get our men back to work,
but his budget calls for SIC, ,000,-
100000 for national defense "a
new kind of spending, the eco
nomic effects of which are not
clear. as much of the money
may wind up in foreign lands).
Although he says veterans are
lounging before going to work
(war workers alSo?), he de-
mandS that Congress increase
the unemployment compensation
allowance. and extend the num-
ber of weeks men may get il,
thus counteracting his quick re-
employment purpose.
He Wdnts Congress to in
crease the minimum WdRs
(for unskdied labor largely.
bur this labor is already gem
orally getting a higher wage
than the proposed figure. Yet.
BY WhoteUer degree IL in
eredses minimum Wages in
some industries, IL WW serue
The cause OF imitation.
his recommendation for con-
tinuance of OPA controls rs
about the only one, which jibeS
with his anti-innationary pur-
poses. but he is simultaneously
digging a hole in that ceiling
for steel and is proposing to
nav bipUpr- unVprDrnppt St1bSidieS
on food in an effort 10 conceal
a price increase by having the
government pay for IT,
He is paying subsidies 20
packers TO hold down meat
prices. but the workers are
striking for his wage increases
which must increase prices on
subsidies.
Thus his actions run counter