Evening star., 1947-12-20
Farmers and Oil Men
Are Dead Sci Against
Initiation Controls
Rural Area Voters Recall
DefIotionory Program
After World War
By Jay G.. Hayden


By Jay G. Hayden
Politically speaking, the most
disclosure attendant to
the vrangling over what to do about
imitation is that Congressmen whose
constituencies are predominantly
rural and small town regard high
prices, up to now, as anything but
o disaster.
This Is so because food prices are
leading the advance with other raw
commodities. such as oil, cotton and
lumber, close behind, and this con-
dition is reflected In an unparalleled
prosperity in all rural regions.
The biggest stories come from
the Western Wheat Belt-the one.
for example, about Kansas farmer
who has bought seven airplaneS for
personal use-but the boom extends
to millions of small farmers in every
part of the country. Forty-acre
farmers In Michigan, New York or
Vermont, whose only automobiles
heretofore we're secondhand rattle
traps bought on time, now are
planking down $1,000 or more In
spot cash for new cars.
Small town merchandlsers,
prof1ting accordingly. complain only
OF too few goods to sell.
Bonanza in Crude Oil.
A new bonanza just now has been
kicked off by a sensational increase
In price of crude oil. The stiff OIL
price restriction imposed by the old
OPA was subject of continuous
bitter complaint by all oil men.
Even Harold l.. Ickes, as petroleum
administrator, urged unsuccessfully
a rise of IS cents barrel on the
ground that prospecting had be-
come so improbable that severe
oil shortage was in prospect.
Taking the East Texas field for
an example, prices for crude oil in
the last days Of OPA ranged from
95 cents to s1.37 a barrel. There
after they climbed rapidly until
large oil buyers joined in establish
ing a stabilization at about $2.15 a
barrel, which held for some time.
With bidders more and more over
riding this price, however, Sun Oil
Co. three weeks ago announced
50-cent Jump, bringing the East
Texas price to about $2.65.
A resultant rise in the price Of
gasoline, just now showing up at
the pumps, may stimulate demand
for return of OPA, but on the other
side of the fence the millions of oil
producer voters are lined up with
the farmers in resistance to restora-
ton OF price control in any form.
The oil-producer representation,
always powerful in Congress, Is
composed mostly Of Democrats. And
a combination of the farm, oil and
other commodity production blocs
rarely has been beaten in either
branch Of Congress.
Recall World War I.
Farmer dislike Of imitation con-
trolls stems to considerable degree
from what happened after World
War I.
Because Of q general price-boost-
ing spree, following removal OF war
time controls, President Wilson's
Federal Reserve Board In 1920
launched q stiff deflationary pro-
gram, mostly in the realm OF credit
and currency restriction.
The extent to which these meas
ures actually affected commodity
prices was bitterly disputed, but
shortly after they were instituted
prices of all farm products took an
unparalleled nose dive. The farm
depression thus begun lasted for
nearly 20 years.
Also, farmers and other COM
modify producers believe that they
got the worst of price controls dur
ing World War II. Especially they
feel that Presidents Roosevelt and
Truman Disseminated in favor OF
organized labor by boosting wages
while holding food prices down.
Above all, the farmers are deter
mined that, If there is to be a re-
institution of Government controls,
union wages must be frozen first.
In modelling his drastic price-con-
troll recommendations, President
Truman proceeded on the advice OF
Government economists that prices,
unless they are checked by law. are
going right on up, with a resultant
economic smashup probably before
the 1948 election. If this diagnosis
proves correct, even the rural Con-
gressmen may be scared ultimately
into enacting the Presidents pro-
posals.
The great majority of Congress
however, and, as it appears, an even
larger proportion of businessmen
cling to the hope that rising Amer
lean production, if it is left unham-
pered, will sufficiently balance the
scale of supply and demand to save
the economic ship from foundering
The latter conception proceeds on
the theory that what it needed is
not 50 much reduction Of prices as
sterilization of all economic ele-
ments on the existing elevated pla-
teau.
North American Newspaper Alliance)