Evening star., 1946-11-13
Electrical Union Asks
Raise as Industries
Study Price Level

A large labor union asked for a
new wage increase today while
some industries raised prices and
others promised to hold the line.
At the same time, Government
economists here took the view that
the end Of price control last week
end will delay any business recess
sion and even may aid President
Truman in balancing the budget.
The United Electrical, Radio and
Machine Workers Union, third larg-
est unit In the CIO, called in New
York today for wage increases to
offset "skyrocketing prices" The
union did not stipulate the dollars
and cents or percentage increases it
expected to ask.
On the industry front, E. G. Grace,
chairman of the Bethlehem Steel
Corp, declared the company has
no intention Of making a general
increase in steel prices "if costs re-
main stable" He said the company
would be forced to raise steel prices,
however, II wages are raised in eth
er the steel industry or by suppliers.
Hope to Hold Clothing Prices.
The story was the same in the
clothing manufacturing business.
1sadore Agree, general manager of
the National Dress Manufacturer
Association, said manufacturers
want to hold to their present price
lines as long as possible. Only sharp
increases in fabric or labor costs,
he said, would bring about shift
In the price line.
Despite widespread reports of surg
ing prices, Government economists
predicted the general cost of living
level will not climb more than s
per cent and probably not that
much, before stabilizing.
That compares with q 128 per
cent rise between WI day and mid
September-before OPA's decontrol
movement went into high gear-and
q 44.7 per cent rise since this coun-
try went to war.
The 5 per cent guess, made by one
OPA economist, was considered too
high by some other Government ex-
perts interviewed today. The aver
age price of goods sold over-the-
counter might go up that much,
they said, but If rents and such
services as laundry, cleaning and
repairs hold reasonably steady, the
average cost of housing, clothing
and feeding a family won't jump
that far.
Increased U. s. Revenue Seen.
However small the comfort may
be to consumers who yesterday saw |
some soap go up cents for a small |
cake, the bigger flow of dollar going
into the businessman's till will in
crease the Governments tax rev.
enue.
One official, who preferred to
make his predictions anonymously,
said it definitely improves" the
chances that MIR. Truman will make I
good on balancing his $41, 900 ,000, 900 |
budget for the fiscal year ending
next June 80.
1t won't happen in just the way
Mr.. Truman wanted it to, how
ever. His aim was to cut Federal
spending and thus make the Gov
ernment stop its inf1ationary course
Of pouring out more money than
1t takes in.
This effort will go forward-espe-
cially with a Republican Congress
bent on cutting Government costs.
But now there viii be additionalI /.
nfiation anyway, which in turn willtl
produce more tax revenues, which +.
n turn will help the administration
make ends meet.
Even If the new Congress cuts
tax rates, as some Republican lead
ers proposed to do, the chances of
balance are still good, the official
Insisted. For one reason, a tax
cut would not be felt in reduced
revenues for some time after the
new rate begins; for another, when
national income rises, Federal rev.
enue goes up in direct proportion,
but Federal expenses do not.
Turn Down Delayed.
On the score of a business turn
down, which many economists and
others have predicted for next year,
authorities say Saturdays decontrol
order Is virtually certain to delay
it. They reason that so long as
price trends are strong merchants |
will tend to lay in more inventory |
and keep factory wheels turning. |
However, the consensus is that |
the death Of price control will
make a recession more likely to
come, ultimately. With prices of
building materials going up build
ers are likely to delay starting new
homes and buildings. Therefore
the construction industry may not |
be ready to 60 at full speed in