Evening star., 1947-09-19

prices unless there is increased pro-
ductivity per man, or unless the In
dustry is peculiarly profitable.
Many Increases Justified
After WI day, when wage con-
trolls were removed, it was under
stood and proper that labor unions
would go out and get the best in
creases they could get consistent
with the ability of the business ir
which they were working. but with.
out giving legitimate grounds fol
price increases. In two or three
months, increases were negotiated
in many fields, particularly by the
AFL, ranging from S and even up tc
20 per cent in a few prosperous in
dustries, and few price increases were
necessary. Then, suddenly, respond
ing to the CIO demand for a gen.
eral 30 per cent increase, the Presi-
dent repudiated his first position and
the action of the AFL, and encour-
aged and 1872 cent increase patterr
throughout all industry, together
with large increases in salary fol
every one including especially Gov
ernment officials.
Obviously, many wage increases
were justified. Obviously, even today
wages and salaries in some fields
have Jagged behind the increased
cost of living. But the effect of q
general wage increase pattern was
of course, to increase prices.
6. In 1916, the President vetoed
the Case bill, which proposed te
curb in a mild manner the power
of the labor union leaders to force
higher wages than justified for 6
very limited group of powerful
unions, resulting in increased prices
and costs for everybody else.
7. The administration insisted
that huge dollar funds be made
available to foreign nations through
the International Bank, the Inter
national Fund, the Export-Import
Bank, the British loan and many
other special advances. The lend
lease policy during the war had al
ready provided many nations, par.
ticularly Great Britain and South
America, with dollar reserves. We
gave away everything we exported
and we paid for most of our imports
so our gold reserves decreased dur.
ing the war. New dollars were Law.
ishly dispensed, usually without re.
quiring any proof of special needs
and loans like the British loan made
dollars available to be spent any
where in the world, finally becom-
ing available to force our prices up
The Breton Woods fund was alway.
theoretical concept of Keynes ane
White, with no application to the
worlds emergency condition.
Believes i'm Assistance.
have believed from the beginning
that we should assist other nations
to get their plant in order and &C.
quire raw materials so that they
might go to work to support them
selves, but the result of these loans
with practically no control over the
purposes for which they might be
expended created a tremendously
abnormal trade from this country
The power to control exports, con-
ferred by Congress, has practically
not been exercised. Of course, for
eign nations cannot buy from us al
the rate of Is billions a year without
substantially increasing the whole
price level in the United States. Also
Government and foreign buying
policies have not been pursued with
any interest in price and have
brought the Government into the
market at the most inopportune mo-
ments.
3. Finally, the President has
fought every effort of Congress to
reduce Government expenses and
taxes The tax burden in this coun-
try is tremendous. The Presidents
new estimate shows that the revenue
will be over $41 ,OO0, 100000. If we
add State and local taxes, the total
will be $50, ,000, 900 900. at least 30 per
cent of the national income. No
matter how this tax is raised, it falls