Evening star., 1947-09-19

costs produced by higher wages re-
suited in many products being en-
tirely eliminated from the market
President Truman ended prici,
control too rapidly" Senator Taft
said. Now he Is blaming the Re-
publicans for the end of the OPA,
but in the first place it was a Demo-
crat Congress which considered all
questions relating to the extension
of OPA and passed the OPA bills.
And it was President Truman who
vetoed the first bill and Cancelled all
price control under the second"
1t was Senator Taft whom the
President singled out for special con-
demnation in his message vetoing
the first of these bills.
Urged Gradual Easing.
Senator Taft told his audience he
had wanted a very gradual reiaSa-
ton of these controls.
Because the first OPA bill cor
tanned the simple provision that in
creased costs must be reflected in
increased prices" Senator Taft
continued, "the President vetoed the
bill, thus removing all controls for
a period of six weeks. That ptac-
tically wrecked the possibility of
further scientific control"
Senator Taft said he co-operated
with Democratic Leader Barkley in
enacting a second OPA extension
law, but because of the six-week
hiatus, it had been impossible to
get as complete a control over agri-
cultural products as did the first
bill. The Presidents own board
then decontroled grain and dairy
products, and the President himself
Cancelled meat control, the Senator
pointed out. The President had full
power to continue control over man
ufactured products until June 30,
providing he recognized increased
costs, Senator Taft said. But the
President voluntarily abandoned
this control after the November
elections last year $50 that, if man.
ufacturers were making excessive
profits in 1916 and 1947, it was not
due to congressional action, Sen
ator Taft insisted.
Il quite realize the reasons for the
action in removing all
meat controls about the time of the
1916 election" the Senator said HE
was advised by every Democrat poll
tician that controls affecting the
supply of commodities had become
so unpopular that, unless he re-
them, there would be an
overwhelming Democrat defeat in
November. He did not act soon
enough"
Bungled on Housing.
Senator Taft charged that the
President had bungled, too, the
problems of housing when he aban-
doned the Wyatt program.
He said the administration had
insisted that huge dollar funds be
made available to foreign nations
and that this action had played its
part in forcing prices up in this
country. Senator Taft complained
these loans had been made with
no control over the
purposes for which the money was
to be spent. The result was a tre-
mendously abnormal export trade
from this country. 8
He said that, while Congress had
given the President control over ex-
ports, 'it has practically not been
exercised" Advancing his proposal
that a new stabilization of wages
and prices be attempted, Senator
Taft said:
Il believe that we may as well
recognize that prices are perma-
nently up above prewar prices.
Since both wages and prices have
risen, wages on the whole more
than prices, we had better work
toward stabilization of wages and
prices at some new levels, perhaps
so or so per cent over 1889. Increase
in supply and some decrease in
abnormal demand should bring
prices back to that level from the
present level of 80 to 100 per cent
increase.
THE. excess increase in wages
over SO or so per cent can probably
be compensated in numerous INDUS
tries by an increase in productivity.
If we set the so or 60 per cent as
the goal, we should then encourage
the increase of all subnormal wages
and salaries to that point compared
to prewar.
"If prewar wages in any industry