Evening star., 1947-11-19
Presidents Message
Puts Both Political
Parties on the Spot
+ Trumun Runs Risk If
Program Is Voted, COP
IF Measures Are Beaten
Bv David Laurence

look for the political implications OF
any important move in national
policy. But President Truman's
message to Congress really puts both
political parties on the spot.
There is just as much risk, II not
more, for Mr.. Truman politically in
enactment Of the program he has
recommended as there is for the Re-
publicans If they defeat or emascu-
late it.
The foreign-aid project, curiously
enough, is not a source Of much
disagreement. The question there
Is how much and how shall the
funds be administered and the
goods distributed.
The impact of the Marshall plan
on the domestic economy, however,
is full Of political controversy both
In the short-range and long-range
aspects.
Object of Voters Wrath.
II the Republicans refuse to grant
Mr.. Truman the power to allocate
and even to ration goods, they will
be pilloried before the country as
having refused to do anything about
the high cost Of living.
II the Republicans vote to approve
the Truman plan, then the Demo-
Gratis will suffer politically because
there is no doubt that Government
controls are unpopular and, no mat
ter how justified the reasons, the
party in power is the object Of the
voters wrath just the same. Thus,
In November 1946, the Democrats
lost Congress primarily because of
the meat controls and black markets,
though failure of the Administration
to do anything about strikes did add
to the discomfort Of the electorate.
Imposition of discretionary con-
trolls or voluntary rationing will have
almost the same effect as actual
controls because the public will not
accept the Inconvenience as due
entirely to the need of a foreign
program. They will look upon eco
nomic confusion and maladjust-
ments as the responsibility Of the
party in power.
That is why the Republicans stand
to gain by voting what the Presi-
. dent wants. On principle, however,
they are opposed to controls. They
do not like to see revival of war
time powers. But they are up
against condition and not a theory.
they will have to vote what Mr..
Truman asks in order to emphasize
that the responsibility is with the
President and that If prices do not
come down it will be the fault Of
the administration.
In all the comments from Wash
ington since the President delivered
his message, 1t Is significant that
little has been said about the new
commitment which the administra-
ton has taken on. This relates to
the repression of further wage
increases.
Until few days ago, 1t was taken
for granted that the administration
was expecting another round OF
wage increases and that nothing
would be done to restrain such a
step. Now, with the recommended
ton by the President that wage
controls be reirnposed in certain1
selected fields, there is a plain indl-
cation of administration disapprovalI
of another round of wage increases.
Back to September, 1945.
Labor union leaders, on the other
hand, have not been too keen about
adding to the inflationary cycle by
demands for more wage increases in
the near future. Often, however,
these leaders find themselves up
against a sentiment among the
workers, sometimes famed by am
bilious leaders who want to win
union Offices on a platform of oppo-
sition to whatever the incumbent
officers do or fail to do.
If the administration does put
its foot down on any further wage
increases, there is certainly going to
be a countermove from labor's ranks
TO hold down prices.
The American economy is in some
respects back to where it was in
September, 1945. Many shortage
has been overcome since but the rise
in price in scarce products has not
been stopped at all. Before VI
day, the continuance of controls OF
wages and prices was urged on Mr..
Truman on the theory that the
Government could gradually relax
its controls over a period of year
or two. The administration got
panicky and removed wage controls
without removing price controls and
started a cycle of imitation which has
been vexing the country ever since.
Then price controls were belatedly
removed after wage increases had
been allowed to soar.
Increased production in a period
of limited controls may solve the
imitation problem. But the Repub-
licans can't just oppose the Presi-
dents recommendations without
program of their own.
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