Evening star., 1947-11-18

WIlO hl1OWS dl1y
thing about imitation knows that it
is the lack of goods and the over
supply Of purchasing power that
bids up the prices of scarce articles.
Likewise, prices come down only
when the supply of products exceeds
the demand.
Mr.. Truman talked about the rise
in industrial prices and made a
reluctant confession that wages
really have had something to do
with the rise in prices. Up to now
he has been inclined always to use
the argument that high prices were
due either to the ending of |OPA or
to the failure of industry to absorb
rising costs without increasing
prices. Mr.. Truman in his message
spoke of getting all sorts of author
ity and power. which he promised
not to use unless absolutely neces-
sary. He intimated that voluntary
controls would be more effective If
the Government held the club of
legal controls over the heads Of
business, labor. agriculture and
consumers.
Hasardous Undertaking.
This Is a rather hazardous under
taking because so many businesses
and industries are interrelated. If
one Is controlled and the other is
not, all sorts of maladjustments
arise. What is even more embar-
RAISING Is that the moment legal
controls are imposed black market
operations begin.
Mr., Truman's message assumes
q grant Of authority by Congress to
permit the Chief Executive to
threaten the return of controls
whenever an industry or group in
business or labor grows recalcitrant
and refuses to accept the mandate
of a committee or agency OF Gov
ernment.
It Is not likely that Congress will
grant such unlimited or underlined
powers. Congress has had some ex-
perience with wartime controls and
knows the pitfalls.
The real answer to imitation is
increased industrial production. Mr..
Truman had only this to say about
1t in his entire message: TO eX-
pand industrial output, we need a
long-range program to overcome
basic shortages in capacity and
equipment"
This is a vague statement which
avoids the real issue. The real bar
rier to increased production is that
which has been imposed by the Gov
ernment itself on overtime produc-
ton. The wage-and-hour law, for
example. places a penalty on In
creased production. Some means OF
allowing straight time to be worked
above existing overtime schedules
which are payable at time-and-a-
half rates would do more to increase
production and bring prices down
than any single proposal made IN
the Presidents message.
Overtime Work Penalized.
The United States today is suffer-
ing not from goods shortage but
from a work shortage. The ma
terials are available If workers were
permitted to work longer each day
to get them into the hands OF
professors. Instead, in many busl-
nesses, there are sixhour days and
35-hour work weeks and the penalty
of time and half payable at high
hourly rates is enough to deter pro-
duction.
The Republicans will certainly be
derelict in their duty If they swallow
the Presidents program on initiation
without accompanying 1t with some
specific legislative standards for the
exercise by executive agencies OF
such new control powers as are
granted by Congress. Likewise the
Republicans will be culpable polit-
tcally if they do not sponsor an al
tentative program which removes
the many barriers against increased
production to be found in labor
union contracts. All agreements
that ban labor saving devices and
all provisions thereof that endeavor
to curtail production might well
have attention.
1t is unfortunate that the Presi-
dent did not deal with the work
shortage but dealt only with the
shortage of bureaucratic power
which has been a source OF great
regret to the planned economy
and Government-control folks here
abouts who sadly miss their wartime
powers. Imitation is durable pro-
vided the President and the Con-
gress care to avoid politics and give
workers the incentives that will in
crease output.
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