Milford chronicle., 1948-03-05

4A444E VI
candidates ability as a vote-getter when the
chips are down.
The much-discussed state of the union
message is cited as an example of poor Pres
idential maneuvering. 1t consisted of a
whole series of proposals of which many OBJ
viously had no chance of enactment into law
1t was in many places, poorly organized and
weakly phTased Many members of his own
party were dismayed by it, and just barely
went through the motions of applauding.
The G. 0. P. cOmmand-With important
XceptiOns-believes that the American peO-
pie feel that the Administration has gone too
far in it's Aid to Europe program. The eff
feet of European purchasing on prices and
markets in this country is being stressed
This does not mean that the Republicans are
isOlatiOnist. They are not, but they think a
workable program is possible at less cost.
And in this, they will have considerable sup
port from Democrats.
Most of the polls show that Mr.. Truman
would win tOday-but the margin is SMALL
A number of astute political analysts have
looked into their crystal balls and come up
with declarations that the G. 0. P. has more
than an even chance. That is what is MAX
ing this years race the most interesting in
a long time.
IT WILL BE SOME TIME before we
know definitely whether the heavy auctua-
tiOns that have taken place in the price of
certain basic commodities indicate that in
iation is being checked. But they have been
an excellent example of the sensitivity of the
free market.
The free market accurately reflects con-
ditiOnS. In the long range, it is dominated by
o11H 30 Aho
kind of market which is responsive to the
changing winds of governmental policy, pub
lie confidence, and the economic picture in
general.
The controlled market, whether the con-
trolls be imposed on the wholesale or retail
level, must always fail. 1t is an attempt to
deny actuality-tO establish, by fiat, set of
conditions which do not exist. This is in
evitably followed by two developments. First,
producers drop out of lines which are no
longer profitable under a controlled price,
and turn to something, usually of luxury
nature, that offers a better chance of profit !
Second, as goods become scarce, the black
market fOurishes. The normal, established
agencies Of trade are no longer able to ade-
qUately supply the needs of the consumer.
This has happened in every country which
has pinned its faith on price fixing, ration
ing, allOcatiOnS, and other controls. 1t was
beginning to happen here before OPA was
abandOned-the black market was turning
into a national scandal Some could buy
what they wanted by paying through the nose
for it. The rest of us went without
Modern history is the strongest advocate
Of the free market. The evidence cannot be
denied.
- .e.-.vs-.- GS1ON~S
JUST WHAT is RESPONSIBLE for
tightness in the oil supply situation in GER
tain areas? Secretary Of the Interior KrugI
recently answered that officially.
Shortages" he said, "are not due to de-
creased supplies, they are caused by tremen-
dOus increases in demand Demand during
1947/ resulted in an increase of SO per cent
in. the consumption of petroleum products
and In go per cent increase in gas con-
sumption. We are using more petroleum
products today than during the war peak
and more than the entire world used before
war.
"MOre than 80 per cent of the locomotives
on order are Diesel engines, domestic oil
burner sales are at the highest rate in the
history OF the industry, fewer automobiles
are burning more gasoline than before the
war and developing passenger and
1reignt tratflc IN the air is requiring larger
volumes OF high Octane gasoline =.
=, LIE petroleum INDUSTRY is trying to meet
the enlarged demands but expansion of plants
and facilities has been retarded by six years
OF war and shortages Daily output of
crude oil in the u. S. is now more than 5OO,-
600 barrels per day higher than last years
average
- There, in capsule form, is the oil story.
NO one could have anticipated the extent of
the increase in demand since VI day, and
the industry has done a remarkable lob in
dealing with it. Serious shortages have been
rare, and if the public cOoperates in reas-
enable conservation measures the situation
will ease. More oil is coming as fast as it
can be produced.