Evening star., 1947-12-10
Four-Point Plan to Curb Initiation
Is Agreed on by G.O.P Leaders;
Enactment by Dec. 19 Expected
Decision Is Due
tomorrow on
Open Hearings

a four-point anti-inflation pro-
gram which they expect to pass
before this session of Congress
adjourns for the Christmas holi-
days.
Senator Taft of Ohio, chairman of
the Senate Republican Policy Com
mittee, and House Majority Leader
Halleck announced the program
provides tor:
l. Voluntary industry wide agree
ments to hold living costs in line.
Antitrust laws would be set aside
temporarily for such agreements,
and the administration would be
given money to promote such
program.
2. Continuation and expansion of
export controls.
Increased Gold Reserves.
3. Increase from the present 25
per cent to 40 per cent the gold
reserves required behind currency
issues by Federal Reserve Banks,
and increase from Is to IS per cent
the gold reserves that Federal Re-
serve Banks must carry to support
the deposits Of commercial banks.
4. Controls over vital transporta-
ton facilities, such as boxcars.
Transportation admittedly is one
of the bottlenecks to greater pro-
ducJion in this country.
The Republicans drafted their pro-
gram as reply to President Tru-
mans request for broad powers to
resume rationing and price controls
if the administration should decide
they are necessary.
A draft of a bill covering most of
the Presidents request was presented
by Secretary of Commerce Hartman
yesterday to Senate Judiciary Sub
committee, but Republicans have
made clear that measure will get
nowhere.
Wolcott to Introduce Bill.
Even before the Republican pro-
gram was officially announced, it
had come under attack from Demo-
Gratis. Representative Gore, Demo-
crat, of Tennessee accused the COP
of rubber stamping" for "big busi-
ness" by proposing voluntary indus
try-wide agreements.
Senator Taft said single bill en-
bodying all four points of the Re
publican program will be introduced |
in the House Immediately by Chair !
man Wolcott Of the Banking Com
mittee:, |
Mr.. Wolcott told reporters he
plans to hold an executive session
tomorrow to decide whether to hold
open hearings on the bill.
Senator Taft and Mr.. Halleck an
nounced the plan following meet
ing of Senate and House COP lead
ers in the Office of Speaker Martin
They said they hope that the single
bill can be enacted in time to per-
nit Congress to adjourn on Decem-
ber 10.
About the time this meeting was
breaking up on the House side of
the Capitol, the Senate Banking
Committee approved one point of
the Presidents imitation pro-
gram-legislation to restore limited
consumer credit controls through
March Is, 1949.
Vote Is 8 to 4.
Chairman Tobey told reporters
the vote was - 4.
The Senator sid three Repub-
licans-Tobey anu Senators Buck,
Republican, OF Delaware, and Flan-
ders, Republican, of Vermont
joined the six Democrats on the
committee in casting ballots for the
bill.
Four Republicans voted against it.
The bill approved by the commit
tee simply authorizes the Federal
Reserve Board to restore controls on
installment buying. This excludes
regular charge accounts from any
restriction.
Details of the program-consumer
goods to be covered, the amount of
down payment required and how
much time to pay the balance
would be left to the Federal Reserve
Board, as under the control program
which expired November 1.
That program covered such
products as automobiles, washing
machines and refrigerators. In gen
eral customers were required to pay
one-third down on these and had to
pay the balance in Is months.
Door Not Closed.
Senator Taft said the subject of
consumer credit controls will be
handled separately "if at ALL" but
indicated that no action is likely
at this session.
That statement did not close the
door, from the standpoint of the
leadership, against action on the
measure approved by the Banking
Committee.
Attending the conference besides
(See ECONOMIC, Page A-3.)
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