Evening star., 1948-02-13
Grain-TradingR Rumpus
Held 0Id-Fashioned
Game Of Politics
COP. Seen Holding Leod
In Argument Started by
Democrats kost Summer
Bv David Laurence

The Democrats started the muck
raking last summer and so angered
the Republicans that they have now
retaliated and seem to have much
the better of the argument.
It doesn't pay to misrepresent
things even in politics, but the
Truman administration, with its
eyes wide open, blamed the Re-
publican Party for the rise in prices
when Government controls were
lifted. The Republicans didn't
create the scarcities in grain or steel
or other articles In great demand.
But under the leadership of Presi-
dent Truman and his cabinet, who
saw a good political opening,
flood Of propaganda and speeches
was released accusing the Republi-
cans of having pushed upward the
cost of living. Statistics were pro-
duced that completely ignored the
rises in price during the war and
also omitted all mention of the in
exorable law of supply and demand.
G. o. P. Grabbed Ball
Resentful over such misrepresen-
tations, the Republicans quickly
grabbed the ball when President
Truman fumbled by blaming high
prices on speculation in the grain
markets. The free-for-all started
Immediately. The r epublicans
showed that Edwin Pauley, former
treasurer of the Democratic Ma
tional Committee and a presidential
appointee in the Army Department,
had engaged in speculation. There
was really nothing wrong with Mr..
Pauley's activities, but, in. the light
of Mr.. Truman's characterization,
this was. too good an opening for
the Republicans to overlook.
The administration during the
past several months had also been
pursuing a political attack on cor
poration earnings. The spokesmen
for the Democrats kept calling at
tention to some misleading statistics
on profits of corporations and failed
to point out that profits per dollar
Of sales had not changed materially.
Labor unions. with whom the ad-
rinistration plays intimately, took
up the same strategy until it be-
came apparent through Gallup
polls that the administration was
succeeding in It's attempt to blame
the Republicans for removing con-
trolls and, it was alleged, thereby
sending upward the cost OF living.
Truman Urged Return of Curbs.
The Republicans have known all
along that the Government is the
biggest single buyer of grain and
that it could cause rise or drop
In prices on the markets at will.
But the Republicans refrained from
attack along that line until Mr..
Truman opened up on the specu-
lators.
The Republicans knew also that
the administration, irritated by the
pleas of Democratic leaders over
meat controls in the autumn OF
1870, lldQ bCSO41 o. 6ShSA oA AVA Wv
on the subject of controls.
Then, when the administration
saw In the Marshall Plan and its
increased buying for export like
lihood that prices would rise, a de-
mand for restoration of price con-
trolls came from President Truman
at the special session called last
November. 1t was made to appear
as a belated vindication of the
policy he pursued in vetoing the
repeal Of the OPA in the summer
of 1916.
The Republicans refused to go
along with the restoration Of con-
trolls and, while giving small
amount of authority, insisted con-
trolls should not be revived. Again
the Democrats thought they had
caught the Republicans in a trap
and began limiting that demands
for q third round of wage increases
would be forthcoming from its
labor union allies unless prices
were reduced. The claim was that
only Government controls could
UIlL6 QOWH pA1Ccs.
Dramatized Issue.
The Republicans stuck to their
attack They dramatized the issue
of speculation, not because trading
In grain is In itself wrong or un-
lawful but because they saw a
chance to return the smear which
Mr.. Truman and his spokesmen
had sought to impose by reason of
the removal of the OPA and price
controls
The Republicans organized con-
gressional investigations to look into
all manner of speculation inside
and outside the Government. They
discovered that Government buy
ing did affect prices and that the
wide publicity given to administra-
ton buying policies helped specu-
lators to bid up prices.
This does not mean that anybody
In the Government did anything
unethical. Secretary of Agriculture
Anderson is in no way involved in
the speculation, and it is doubtful
whether 1t will be found that any
important aides or assistants were
speculating or informing specu-
lators as to the departments plans
for purchasing.
The simple truth is that, when
there is scarcity in the face of alb
normal demand, the price goes up.
Likewise when there is an adequate
supply for export and the Govern
ment has bought about all it needs, |
the price levels Off and tends to
drop 1t is unfortunate that the
political game has to be played with
such obvious disregard of economic
laws. The Republicans aren't re-
sponsible for high prices, and
neither are the Democrats.
The real blame falls on the dew
sstation of war and the ravages of
bad weather. AS oversupply sets in,
prices come down naturally with
out Government controls or the
OPA.
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