Evening star., 1947-09-19
SpecioI Dispoteh 10 The stor

speeioI Dispoteh 10 The stor
SAN FRANCISCO. Sept. 19.-
FoltoDing is the tert of the dd-
dress of Senator TAFT. Republi-
can, OF Ohio, prepared for deliu-
cry before the Commonwealth
Club here today:
T.greatly I appreciate the invitation
which you have extended to me to
talk to the Commonwealth Club
long recognized as one of the great
forums of the Pacific Coast. It is
eight years since I have been in
California, and I have been tre-
mendously impressed with the tre-
mendous growth and development
in every field in industrial, CONNER
cial, agricultural-and educational
and intellectual-activity.
No Congressman who does not
realize the problems and Importance
OF the Pacific Coast can accurately
weigh the national interest as a
whole. 1t is unfortunate that the
distances are so great. But I have
found that the Californians are
learning to make up for distance
by the force of their presentation
In Washington. Gov. Warren COM
mands tie respect of the entire East,
because of the high character of the
State government and his own for
ward-looking views.
Many Californians have done a
fine job in Washington, but because
of my personal relations with Bill
Knowland, think that I am justi-
fed in mentioning the outstanding
part which he has played in the
United States Senate. There is
no more valuable Senator on the
floor, because he really enjoys the
process of legislation and has there
fore acquired a knowledge of it and
ability which not many of the older
Senators have.
High Price Danger
spoke earlier this week of the
record of Congress, and the differ
ence in philosophy between the Re-
publican majority determined that
future progress be based on individ-
ual and community freedom, and
the totalitarian school of thought
represented by the New Deal wing
OF the Democratic Party dominated
by the PAC theory that every prob
lem shall be solved by giving more
money and power to some Wash
1ngton bureau. 1t is difficult for
one who is not on the ground to
realize how the New Deal theory
dominates the present Democrat
administration on basic issues, but
1t appears in nearly every legisla-
tive action in one form or another
II 1t does not affect the purpose of
the measure, it affects the means by
which the legislative purpose shall
be accomplished.
Today wish to deal with the
danger which faces the country from
the high prices, particularly of food
stuffs, and the spiral of imitation by
which higher prices are increasing
wages and higher wages are increas-
ing prices. The leftwingers are try
ing to put the burden of these prices
on the Republicans. Who has been
in control of this Government, any,
way, for the last 16 years? High
prices today are no sudden emer-
gency. They are the inevitable
results of the Roosevelt Truman
policies since the beginning of the
war.
AS long ago as April 9, 1945, I
pointed out that in view of the
Presidents policies, the real danger
before the country in the postwar
period was imitation resulting from
the great war spending and deficits,
accumulated currency deposits and
"E" bonds, foreign loans and loans
to veterans. I oppose a policy of
unlimited credits to foreign coun-
tries partly for that reason. AS long
ago as November %, 1945, I pointed
out that the acts and real policies
OF the Administration contradicted
its promises to prevent imitation and
constituted a policy of planned in
f1ation.
Steps Toward Condition.
What are the steps which have
brought about the present condi-
ton?
l. OF course, the basic difficulty
was the tremendous borrowing of
the war period, following the re-
peated deficits of the sos. Fifty
billion dollars a year of additional
purchasing power was created by
the Government and much of this
is now coming into the market to
force prices up. During the war,
we established fundamental Gov
ernment control of wages, prices and
distribution. We had a control of
price effective until near the end
Of the war. We had a less vigorous
control of wages, and number of
different methods including ration
ing to control distribution.
Every act of every businessman
was dictated from Washington
Civiliafl production was severely
controlled, and in many industries
small businesses were destroyed be-
cause they were squeezed into the
price limitation only possible fol
the larger concerns. To avoid this
variations began to be made Until
price control degenerated largely
into profit control with all the in
justice and delay involved in the
Government trying to give discrim-
inatory treatment to hundreds OF
different concerns. BY the end OF
the war, wages were up considerably
more than prices and the increased
costs produced by higher wages re-
suited in many products being en-
tirely eliminated from the market
1t has taken time to restore the
production of these articles.
Controls Ended Too Rapidly.
2. President Truman ended price
control too rapidly. Now he is blam-
ing the Republicans for the end of
OPA, put in the first, place it was
a Democrat Congress which con-
sidered all the questions relating to
the extension of OPA and passed
the OPA bills, and 1t was President
Truman who vetoed the first bill
and cancelled all price control under
the second.
Let me review what actually hap
rened when the war ended After