Evening star., 1947-12-01
No Congress Support
Is Seen for Overall
Economic Controls
Bi-Portison. Opposition
Expected to Any PIon
Which Resembles OPA
Bv David Laurence

Politically speaking, there isn't
shred of support in Congress for any
overall controls Of the national
economy.
Inside both parties, there is
genuine opposition to anything
that even remotely resembles the
OPA.
Yet some form of control is likely
to be voted in order to determine
how much goods shall be allocated
for export under the Marshall plan
and how much shall be allocated
for distribution inside the United
States.
Question Of Administration.
The real question is how such
controls. even though sharply limit
ed, are to be administered.
The administration, recognizing
possible opposition to an overall
agency like the OPA, has centered
its attention on a formula whereby
each governmental department
would handle the problems directly
related to its normal functions.
Presumably, the Department of
Commerce would have most to do
with industrial or production allo-
cations. The big question is how
the present staff of the Department
OF Commerce or any other depart
ment is going to be able to survey
the distribution processes in any
given industry and come up with a
scheme that will not be arbitrary
and that will not actually operate
to retard production.
Fear to Give Orders.
1nasmuch as the American eco
nomic system operates under in
cent1veS that are related to price
and to possible profit and possible
loss, Government officials are re-
luctant to order certain things to
be done which could conceivably
result In financial damage to par
ticular units Of an industry and in
unemployment.
During period Of high-level en-
ployment and great demand for
goods, it is easy enough to say that
an arbitrary amount shall be al
located for export and that the rest
can be distributed internally. But
sharp fluctuations in employment
may be expected If needed materials
are withheld and bottlenecks de-
velop that cause, the closing down
Of factories.
There Is every evidence that the
Truman administration Is well
aware Of the complexity of the
whole problem and does not want
to allow itself to get into the posi-
tion where political blame can be
attached to it for any maladjust-
ment that may emerge out Of a sys-
tenn of controls.
Cooperation Plan Likely.
Hence, whether it is palatable or
not, the only answer that has come
up thus far which appears to have
any chance Of adoption is one that
calls for maximum of co-opera-
ton between industry and Govern
ment. This is the best assurance
against regimentation or totalitar-
ian edicts which so many oppo-
nents of a system of controls fire.
quently cite as its worst implica-
ton. I.
If some scheme can be worked
out that will enable each industry
to have a considerable voice in
methods used In ALLEGATIONS, sub
ject of course to approval by the
Government as the representative
of the public interest, a brake on
the inflationary trend may possibly
be exerted. Indeed, If at the end OF
a year or so of Government and
industry collaboration the plan does
work well, an extension through
the critical years that lie ahead
becomes possibility.
Unfortunately, as has happened
20 often in American history, an
economic crisis comedies with
presidential election campaign. 1t
may well be that all controls and
Marshall plan measures may be-
come "stopgap" until the American
people make up their minds to
which political party they wish to
sntrust power.
II, on the other hand, the Tru-
man administration is able to de-
velop q constructive program to
which industrialists and labor
leaders will give their assent-as
it is desirable that both groups be
invited to participate in discussion
of any overall plan-the European
situation will not become involved
in the domestic political campaign.
At present, it does look. however.
rs II the real debate on the method
of control will not come until Janu-
ary or February and until that
question Is resolved the long range
scope of the Marshall plan itself
will not be known.
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