Evening star., 1947-06-26
clio Demands Action
To Prevent Collapse
OF Nation 5 Economy
" n. Associated Press

OF Nation 5 Economy
sy ne A..seiased Press
The CIO asked Congress today
for immediate action to prevent
collapse of our economy"
It declared that thus far there
has not been single STEP to check
rising living costs.
Instead, the CIo contended. Con-
sress has worked In the opposite
direction"
The labor organization urged inn
mediate creation OF Federal inves-
tigation board with the job of she'd
ding light upon the unwaTranted
levels OF many prices" 1t said that
'by the use of public pressure and
exposure of profiteering, we may be
able to force lower prices"
And. the CIO added, If increased
foreign demands flor food, clothing
and machinery and crop failure
continue - this will require that
we re.establish price control and a
rstioning program"
Committee Criticized.
The CIO blast was laid down by
Emil Rieve. q CIO vice president. In
a statement to the Joint Congress
sional Committee on the EcoHomic
Report. This group, which also came
in for sharp criticism by Mr.. Rieve,
Ia studying suggestions on how to
stabilize the Nations economy.
Mr.. Rieve reviewed trends IN our
economy" which he said are steps
on the road to collapse" He cited
high prices, exorbitant profits. liqui-
dation OF savings by low income in
dividuals, the shift to consumer
loans, and the reduced purchasing
power OF the mass of American con-
sumers." He added:
Whether the collapse comes within
q period OF six months or In a
shorter or longer period of time
cannot be predicted with any de-
gree of accuracy.
But it seems to me that the
factors on the unfavorable side are
so great and of such tremendous
magnitude that steps must be taken
Immediately by this joint commit
tee In carrying out an economic pro-
gram which will promote maxi
mum employment, production and
purchasing power"
Says Leaders Should Resign.
Mr.. Ricve assailed the commit
tee for failing to submit recon-
rendations by last February l. as
stipulated by law. on President
Truman's economic report. He said
that if the committee does not
see fit to comply" then its leaders
should resign so that other mem
bers may be appointed who are
willing 10 cooperate"
Senator Taft, Republican. OF Ohio
Ia chairman OF the committee. The
vice chairman Is Representative
Wolcott, Republican, Of Michigan.
In addition to setting up price
investigation board and possible
restoration OF price control and ra-
tioning, Mr.. Rieve presented this
CIo economic program:
1. Complete overhauling Of the
tax structure. including provision
that those who bore the greatest
increases OF taxes during the war
should be the first to beneft" from
reductions. a.
This means, Mr.. Rieve said. IAN
Increase in personal exemptions
from the present level Of $1,000 to
s2,S00 and maintenance OF an ex-
emption Of $500 for each dependent"
Larger Security Benefit. a..
Z. Increase social security dement's
and provide coversse for more
workers.
). Raise the minimum wage from
the present 10 cents an hour to 65
cents. with provision for advancing
1t to rs cents within two years.
4. Enactment of national health
insurance program.
S. Passage OF a bill to prevent dis
elimination In employment.
s. An adequate" soil conservation
program.
7. Enactment of Federal aid to
States for education.
8. Creation of a Federal monopoly
investigation board.
.. Development OF "ar overall
farm program to insure equitable
distribution OF farm income to all
farm groups"
10. Creation of additional river
valley authorities Ito take advant-
age OF water power to develop
electrificstion.
IL. Government construction OF
'low cost public housing and also
large housing projects to be rented
to veterans and workers at low
cost" to supplement private con-
struction
Flanders Urges Rationing.
Senator Flanders. Republican, Of
Vermont suggested, meanwhile, that
the President urge voluntary meat
rationing to help check what the
lawmaker called really serious
living cost spiral.
The Vermont Senator told re-
porter that food damage to the
Midwest corn crop apparently has
smashed hopes that food prices
might turn downward soon In
stead. he said they almost certainly
will 90 up,
Senator Flanders, a member OF
the joint congressional committee,
rejected as impractical sugges-
ton that it might become necessary
to restore wartime price controls
plus voluntary rationing This pos
sible solution was offered to the
committee yesterday by Edward A,
O'Neal, president of the American
Farm Bureau Federation.
Senator Flanders called price con-
troll "the bad way out"
But I do think 1t might be pos
sible." he said. for the President
to spread out this really serious situ-
alton in plain and simple terms.
He could ask the American peo-