Evening star., 1947-12-14
BY the Associo,ed Press

statement, approved by the Re-
publican Conference, on the COP
cost-ot-liuing program:
We are deeply concerned over the
steadily rising prices. Already these
prices impose great hardship and
suffering on many families. We are
equally concerned because so many
individuals and groups are seeking
excessive gains. If the spiral con-
tinues, the ultimate adjustment may
be drastic, threatening a serious de-
preston. We must adopt immedi-
ately policies which will stabilize
prices, and encourage the raising
OF lower incomes up to the new
price level.
Many committees of Congress un-
der Republican leadership have been
studying the causes of rising prices
and the sound methods Of prevent
ing further increase. In particular,
three subcommittee of the Joint
Committee on the Economic Report
have held hearings in the East,
Middle West and Far West, and all
committees have been meeting
steadily since our return three weeks
ago.
Plan to Strike At Causes.
The present condition. while
growing out of the second World
War, has assumed dangerous pro-
portions because of the policies of
the administration which has con-
trolled this Government for the past
Is years-the policv of first restrict
ing production. of devaluing the dol
lar. of deficit spending, of exporting
unnecessarily goods essential for our
own economy, and now of tre-
mendous Government expense and
corresponding taxation reflected in
the price Of every product brought
by 100000 families. The admins
tration now seeks to impose con-
trolls of the effects of imitation while
it continues to encourage the condi-
tions which cause imitation.
We believe that the sound ap-
proach is to strike at the funda~
mental causes of imitation rather
than permit these causes to 60 on
operating and then vainly attempt
to prevent the inevitable results by
arbitrary bureaucratic controls. Such
controls have failed in time of peace
to remedy the causes of imitation
wherever they have been tried.
Furthermore, the primary solution
is to increase production and, since
this is slow process, to curtail un-
necessary spending in the meantime,
particularly that brought about by
credit expansion for nonproductiv
purposes.
The program on which our COM
mittees are now working may be
stated in general terms as follows:
l. Encourage the increase of pro-
duction as rapidly as feasible.
2. Eliminate nonessential Govern
ment expenses, and reduce debt and
taxes.
To Extend Export Curb.
3. Restrict exports, particularly to
countries which have not suffered
the devastation Of war. This means
an extension of the Export Control
Act for another year. Legal power
to restrict exports has existed for
the past year. but deliberate ad-
ministration policy has permitted
practically unlimited export, so that
SO 900 ,000, 900 Of goods and services
have left this country without any
norraenor5inr in, y,orfc T1otc &c o,,o
of the principal causes Of the rise
in prices. Most of these exports have
gone to countries outside Of Europe
4. Discourage further increase of
bank credit for nonproductive uses.
The administration has failed to use
effectively the power which it has
had to restrain bank credit. The
administrations representatives are
in disagreement today as the method
of carrying out the Presidents rec
ommendation. We must not act
without the most careful considera-
tion, particularly since it affects the
proper management of our huge ma
tional debt. Our committees are
still studying this problem and will
report at the regular session.
5. Discourage undue increase of
consumer credit.
6. Support voluntary program to
eliminate waste in the use of grain
and food.
Ask Rent Control Extension.
7. Support general program to
encourage all those in q position
to do so to save more.
8. Authorize the President to en-
ter into temporary voluntary agree
ments with industries to limit in
ventories and authorize priorities,
so as to remove bottlenecks in the