Evening star., 1947-12-23

come down." the Presidents
Council of Economic Advisers
warned today, If the United
States is to move from the cur
rent abnormal times to a stable
period in the Nations economy.
The three-man council, in It's
second annual report, said today
high level economy is being support
ed by somewhat artificial props
heavy exports, crop shortages, pent-
up wartime shortages and large mil
itary needs. But, the council
warned, this cannot continue in
definitely, though it may do SO
through 1948 or longer
Businessmen were called on to
look ahead to a period OF real price
competition" which means the
lowest price consistent with a fair
return in stable economy, rather
than the highest price that the
traffic will bear in an unstable
economy"
The council consists of DR.. Edwin
G. Nourse, chairman: Leon H. Key
serling and John D. Clark.
Other developments in the high
cost-of- Living picture included:
l. Steel industry leaders were
called to meet here on January 8 to
consider drafting the first OF the
voluntary agreements called. for In
the Republican-sponsored anti
imitation bill passed last week by
Congress.
President Truman is expected to
sign the bill this week, despite his
feeling that it is too weak to meet
the imitation problem.
2. Senator O,Mahoney, Democrat
of Wyoming contended that two Re-
publicans-House Speaker Martin
and Senator Wilson Of Iowa-have
"repudiated" the claim of Senator
Taft, Republican, Of Ohio that the
bill is adequate to curb imitation.
The wyoming Senator noted thai
Speaker Martin had called the bill
; only the beginning of COP pro-
gram and that Senator Wilson-whe
voted against the bill-had declared
he does not believe 1t will be gen.
) orally effective in the fight on high
prices.
Senator Taft" said Senator
O'Mahoney, has merely closed hi
; ears to the facts and is trying tt
give the impression that the Presi'
dent has authority which, in fact
the Republican Congress has deniee
to him."
Senator Taft had said that i
the President signs the bill, he vii
have power to check nearly al
the principal causes of imitation, il
he really wishes to do So
Another senatorial blast came las
night from Senator Kilgore, Demo
. crat, of West Virginia. He accused
the National Association OF Manu-.
!, facturers of carrying on campaign
of "deceitful propaganda" to prevent
enactment of the Presidents owr
10-point program.
The Council of Economic Advisers
in discussing the long-range prob
lem ahead, picked out the housing
: industry as perhaps the best Illus
tration" of an industry needing
much more realistic pricing so that
maximum production may be sus-
tanned"
while we are now producing
housing at an extremely high rate,
the council said, measured by any
prewar standard, this production
as in previous periods Of home
building BOOM is concentrated al
, most entirely on meeting the needs
or desires of those In the uppel
income brackets. g
ITO the inadequate extent that
current home building is also serving
families OF lower income, 1t is doing
so at a relationship between the
cost to them and their incomes
which is piling up economic prob
lens for them in the future, and
which does not augur well for sus-
tanned high levels Of housing pro-
duction when the thin luxury mar
ket is saturated and when the
biting edge is taken off the current
shortages
Better Balance of Income.
The Councils report went on to
say that the drive for production
more production and still more
production will not produce eco
nomic equilibrium or solve the price
problem, adding:
"It seems clear that in reaching
this equilibrium many industrial
prices must come down at least In
relation to other prices. Many rates
of profit must subside while rea-
sonable probability Is established
in other areas"
Stable prosperity calls for much
higher consumption in all the lower
and middle ranks" and better bal
ance of income among sections
groups and individuals
The well-to-do alone cannot "ab-
sorb the possible output Of con-
sumers' goods" the council warned
On the voluntary front to hell
hold or drive down prices, the stee
industry will be called on first, i
was made clear yesterday by
Commerce Department spokesman
Speaking for the industry, Waite
S. Tower, president of the American
Iron and Steel Institute, announced
the industry is ready to discuss tn
voluntary plan provided for in tn
Republican anti-infiation bill.
Cooperation Promised.
Mr.. Tower was quoted by tn
Associated Press as saying the in
dustry is glad to help in the figh
against imitation"
Other industries which can be ex
pected to be approached to maxi
similar agreements, the commerce
official made known, are those pro
ducing tin and antimony, nonfer
hsIh tSS,