Evening star., 1947-04-11
Truman Seen Seeking
Scupegout On Prices
Blame Placed On Business Only
Adds 10 Confusion
By DaU;d Lawrsncs


By Dap;d La.Crsncs
The Truman depression. seems to
have been brought somewhat nearer BY
what appears 70 ~ IN effort on the
part Of the President to nnd scape-
gost for tho present high prices. The
President has added to the confusion
IN the business picture. IS
Ignoring wholly the part played by
the Administration ID encouraging wase
increases after vi Day, Mr.. Truman
now says business = responsible for
the high prices and that wage earners
win b Justified Ia asking for further
increases. n
Just at . tims when the economic
system seens most in need Of elirni-
mating politics and governmental inter.
ference with natural laws. Mr. Truman
has again upset the applicant BY giving
encouragement to further demands for
increased wages.
Mr. Trumars dsctsion 70 placs the
onus On businessznen appears to Be the
start Of campaign such g tho New
Dealers used to practics--to blame
everybody else but themselves.
Farm Price Factor Evadsd.
IN the press conference which drew
forth the Presidents comments. he was
asked about the part the Governments
had played in bidding up and support-
/, ing farm prices. This factor apparently
was conveniently evaded As responsible
for the high prices in the food industry.
When Mr.. Truman talks about ''busi-
ness and businessmen" and what their
responsibility is to decrease prices, he
chooses to omit all reference to the
high costs OF labor and materials which
have forced up the prices Of n1anufac-
tured goods. Spokesmen for business
groups were quick to point to the oficiai
figures as showing that, while manu-
featuring prices have gone up rs per
cent, agricultural prices have risen 180
per cent and raw materials 1856 per
cent since 1889. Also 1t was pointed
out that average hourly earnings in
manufacturing have increased IS per
cent since 1899 and large part Of the
rise was through approval Of govern-
mental agencies.
People do not eat the so-ealled man.
ufactured" products, and 10 per cent
OF the recent increases In the cost Of
living has been In foodstuffs. The buy
ing power Of the Federal Government
and its support Of commodity prices
are largely responsible for those In
creases.
But politically, Of course, and from q
demagogic point OF view. 1t is easier to
blame some one else. Hence Mr.. Tru-
mans outburst on the subject of prices
is bound to discredit his efforts ut
moral suasion" and his appeals for
price reduction aimed at business"
Same Sort Of Camoufiage.
Something Of the same sort Of camou-
nage Is apparent in the discussion Of
profits. The big profits Of 1916 came
in those consumer goods lines which had
been unable to produce during the war
and which met tremendous demand
that had been pent-up. It Is disclosed
In the National City Banks recent
statistics for 1948 that, out Of 80 differ.
ent categories Of business, only eight
showed profit margins on sales TO be
wider than In 1899 and In the remain
ing 20 the profit margins were narrower.
Where volume is up, profits have been
good. The only question In the minds
OF many businessmen is whether they
are facing an abnormal demand due
to shortages and whether, when the
demand falls OF and volume declines,
they will be able to continue to make
a profit.
In some instances, unquestionably.
price reductions would be considered II
businessmen could find out what their
suppliers would do. Price-fixing by
business groups is forbidden under the
antitrust laws. The President hints
that maybe the Justice Department
won't prosecute, but this Is slender
reed and one on which businessmen
cannot afford to lean.
The President says that price control
Is now off and the responsibility Is
squareiy on business This Is not all
of the story. So long as the Govern
ment is big buyer OF goods and MAIN
tains support Of farm prices. controls );
of the items involved in the cost Of
living are still on And that's what
Is behind the demands of most wage
earners for higher wages.
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