Evening star., 1948-02-21
Steel
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on loans that would cause "inf1a-
tionary expansion of credit" He
and group of other bankers talked
with President Truman shortly be-
fore the President left for the
Caribbean.
He said he does not believe the
recent market break in farm COM
modify prices indicates that defla-
ton has replaced imitation as an
economic menace.
Downturn Believed Healthy.
The market price downturn has
been a healthy economic sign" he
said, explaining that:
l. People have been complaining
about high prices, especially food
1t would be strange if they COM
planned now of prices going down.
g. The market drop itself makes
people stop and think, and that is
good"
3. Price drops are better now than
II they occurred after prices went
still higher and therefore took
lldA dCI 1d4I.
Mr.. Dodge presided at a meeting
here yesterday of association men,
bers from North and South Caro-
lima, Virginia, Maryland, West Vir-
ginia and the District to discuss the
anti-infationary credit program.
The meeting was the 11th in a
series held in various parts of the
country to explain the program to
bankers. Meetings are to be held
later in New York City and Boston.
View Quoted in Iron Age.
One steel executive. Charles M.
White, president of Republic Steel
Corp, said yesterday he believed
steel prizes are mot high enough"
to assure sound finances in the flu
ture. His statement was in the
form of a letter to the trade maga-
zine, Iron Age. Today the maga-
zine said Mr.. Whites views ARE not
necessarily shared by some other
steel leaders, s.=sr. ..
In today's statement, the Iron Age
said:
1.-TWO major steel heads since the
first of the year have expressed the
view that they would like to see steel
prices lower and no more wage in
creases."
Irving S. Olds, chairman of United
States Steel Corp, said in late Janu-
airy that the corporation hoped to
be able to hold the line on prices.
"At this time Mr.. Olds said then,
I'VE have no s>aeral price increase
in mind
Grace Hits "Too Much Profits"
Eugene G.. Grace, chairman of
Bethlehem Steel Corp, said in the
same period:
If we've got too much profit, the
thing to do is decrease prices" He
reiterated his preference for lower
ing prices instead of increasing
wages. Mr.. Grace did not explain
his conception of "too much profit
Bethlehem earned the largest net
income in its history during 1947.
Since the start of the year indus
try-wide price advances have been
made on number of steel products
The general increase in the price
Of semif1nished steel was disclosed
yesterday.
Criticism of the increase came
from Senator McGrath of Rhode
Island, chairman of the Democratic
National Committee, who called it
dangerous burden" on the cost
of living, and James J. Patton, presi-
dent of the National Farmers
Union, who termed it Shameful
profiteering' and demanded anti
trust action of Attorney General
Clark.
Senator McGrath said the steel
price changes shows the error of
predictions that the danger of in
fation is over. 1t dramatizes the
futility of trying to solve the prob
lem of spiraling prices on volun-
tary basis"
He said that the industry wide
price boost affords the Republican
majority of the Congress with
dramatic object lesson. 1t shows
clearly how they are endangering
the Nations welfare by blocking
President Truman's anti-inf1ation
propranoo -