The midland journal., 1946-04-19

mlttee 10 save the
S OPA and war pow
s's4' ers control bill,
Baruch about which con-
gress is plainly
dubious in the face of business
clamor to kick off government re-
straints. But in this last assignment,
Baruch utterly destroyed the fic-
tions of the administration initiation
policy - said the price structure is
out of gear, mistakes have been
tragic, the Truman-Bowles bulge in
the line against imitation was actual
ly break and a grave one = and
laid down his own new program to
harness imitation and get produc-
tion.
The program will not be
adopted. While Barueh has long
served as fireman for the ad-
ministrati0n, and has been
called in to put out blazes ,
getting beyond control, and gen.
orally issues wise advice - the
administration never follows the
advice. At the outset of the war,
this clear-thinking and unpreju-
diced mind openly told Mr..
Roosevelt how to prevent infla-
tion by a real wage-price con-
troll, but the President pune
tured his control setup SO that
it became a sieve with the
resultant prices of today and the
unending wage disputes. Again
Baruch submitted a report ON
reconversion just before the war
end. and only one of his points
was adopted - recOnversiOn be-
ing left in its current state.
MANY BARUCH PLANS
NEVER CARRIED OUT
The official fireman, thus, has
been unable to get his own fire ex-
adopted in the past
simply because the administration
wanted to play political economics
wanted to get the votes of pressure
groups-rather than to accomplish
its announced objectives.
The new Baruch plan is suf-
fering from the same trouble. A
ban on strikes for a year seems
impossible to attain because Of
opposition Of the unions. Estab- :;
ishment Of high court of COM
merce to plan an economy fair
to all groups is difficult because
the pressure groups would try
to pack it, as they have packed
similar economic tribunals or
preSsured them into Ineffective
ness. To dispel the sham conten-
tion that wage increases will
not bring price increases would
be contrary to what is consid-
cred a good political working
formula by the administration
in an election year.
Now the administration is already
doing most of the other things
Baruch recommended, but frequent
ly in such way as to defeat its
own purposes. While it is doing his
things, it is simultaneously doing
other things at cross purposes which
prevent it from getting results, or
achieving announced goals. It's
wage increase policy is, for in
stance, at cross purposes with its
imitation and price policies; and it's
price-holding policy is being daily
violated by allowances of indirect
price increases.
So we seem to be inevitably en-
barked on a loose patchwork recon-
version program from which we are
not likely to escape. I Judge, for
instance, Congress will enact q linn
tied compromise renewal of the war
powers and OPA, with amendments
designed to correct the worst de-
fects, but the correction of the de-
fects will rest with the administra-
tive branch. Congress cannot take
hold and legislate a whole new pro-
gram. Once the administration gets
renewal of its powers, it no doubt
will continue its chosen, current
way.
This way will not be unsatisfac-
Jury " OuSAiCScy Dut Will AdA W
establish any permanent solution OF
the labor problem or confidence
for the economic future. My guess
is some private assurances have al
ready been made that the Bowles
idea Of limiting profits will not be
carried into effect.
Price increases have been author
lied daily for the past three weeks
to get production, and I see the
stock market is staggering to its
feet after having been knocked fiat
by the first announcement of the
new Truman-Bowles policy.
However, once we get production.
most of our ills will evaporate, be-
cause competition can protect prices
better than government, and If COM
petition can be restored in the la
Dor market, there win be fewer
strikes.
There are still several major
str ikes to be called.