Evening star., 1948-07-29
The Political Mill
High Prices and infIotion
To Be Compoign Issues
Drop in Commodities Before Election
Would Stymie Truman's Plans
b. GoMld Lincoln

By U0Nt6 Lincoln
The issue of high prices and imitation IL
going into the coming presidential campaign
II President Truman can bring 1t about. Prob
ably nothing more disconcerting to the Tru.
man campaign could happen than falling on
OF prices Of important commodities between
now and next November. As far as the politics
of the situation is concerned, everything de-
pends on whether the consumer will place the
blame for continued high prices on the Presi.
dent or on the Republican Congress.
Obviously. Mr.. Truman believes he has the
Republicans over barrel. Just as obviously,
some Of the Republicans are worried and
don't know which way to turn. It's fact
the country confronts condition-not .
theory-and people are paying lot of money
for what they buy. On the other hand. the
people still have money to pay If they didn't,
buying would STOP and goods would sell for
whatever the producers and merchants could
get for them with q slump in prices.
In his message to Congress on the legisla-
ton he wishes enacted, Mr.. Truman said q
great deal about increase in prices, and very
little about the increases in wages that have
gone along, too. except to say that he be-
lieved some further increases could be granted.
He said . lot about production and the full
use of the production system. He failed, how
ever to mention that this so-called full pro-
duction was coming from q 40-hour or less
work week. or to consider how much greater
the production could be in many lines II the
workers labored few hours longer.
Contributing Factors.
Several factors are contributing to high and
higher prices. One OF them, about which
apparently nothing can be done, is the huge
export Of American commodities now going
~. Dr,
a main cause. Mr.. Truman does not suggest
that anything material be done to cut down
the export of goods, nor does he suggest any
fundamental economic remedy.
Rationing and price control are the principal
planks of his program for meeting imitation.
and he Is pretty wary about these. He realizes
that these controls are highly unpopular. once
they are imposed He has good reason to
know this because he confronted that situa |.
ton in 1916, when the people were complaining
bitterly against these controls which had come
over from wartimes. Mr.. Truman, when he
could not get Congress to continue the price
control legislation just as he wanted It. began
scuttling the system in hurry. Even so the
Democrats lost the congressional elections that
year-and control passed to the Republicans.
The effect of rationing and price control In
those days was to limit production and TO
Shunt great quantities OF goOuS lntO plack
market A resumption of these controls would.
in all probability, bring about similar condi-
tions and the people would be no happier with
less to buy-and having to pay higher prices
to get what they wanted in q black market.
Tough Nut to Crack.
It's tough nut to crack, with grave doubt
that any legislation would accomplish relief.
The Republicans with good reason, stick to
the claim that retrenchment in Government
spending would be effective. II the Repub-
licans do nothing. and imitation should gain
great headway Mr.. Truman will beat the
bushes with wide claims that had his program
been put into effect the people would have
been spared. On the other hand, II prices
do not increase materially before November,
Mr. Truman's campaign will have little effect.
The Republicans in Congress, acting on the
advice of Gov. Dewey of New York, COP
presidential nominee, have promised to give
Mr.. Truman's recommendations careful con-
sideration. To do less would be stupid politi.
cally. The country knows that Mr.. Truman's
call for a special session was political without
any expectation on his part that legislation
could be enacted, or If 1t was, that 1t would
be effective. The move seemed to give promise,
politically 1t was something new. 1t will
soon cease, however, to have any novelty at
tached One effect may be to lose Mr.. Truman
any chance whatever of carrying Southern
States, with the civil rights legislation coming
up.