Arizona sun., 1948-12-10
DILEMA:
SharD-HOrned

ever to plague q sitter, President
Truman ponders ways and means
Of getting off. The situation is as
clearly defined as it is bothersome.
IN SHORT, the President must
work the seemingly impossible
miracle Of knocking prices down
while keeping wages and farm
prices up. Mr.. Truman is indubi-
tably committed to the former, and
1t was a great majority of opinion
that he could do just that which
helped account for his victory
That he will also do the latter is
q campaign pledge he must exert
every effort to keep.
No less parsonage than Henry
Ford II has sharpened one of the
horns. The industrialist touched off
tn fourth round" of wage in
creases, with consequent high
prices maintenance, when he an
nounced a wage hike for all his
workers. Then, Mr.. Ford delivered
himself of the observation that
wages generally must go up and
that prices must do likewise.
THE PATTERN is clear Indus
try raises wages and the cost of
its products goes up Wages must
increase if these products are to
be purchased. Labor comes in to
ask for more money in order to
buy these products. And so the
circle continues.
Meanwhile, it is obvious that
Americans expect the President
and congress to do something
about getting the cost of living
within reasonable bounds-and to
do it quick. On the other hand, la
Dor. which backed Mr.. Truman at
the polls. and farmers. who gen.
orally supported him, are expect
ing action as swift on legislation
favorable to them.
AS administration leaders sought
a course of action to satisfy all
groups, congress said little for pub
lie consumption. Methods of price
control, if any have been con-
ceived, have not been discussed.
ONE THING. however. is clear
The situation poses the major test
of how effective in solving the prob
lem will be the cooperation of
congress and the President.
From Capitol Hill came persist
ent whispering that Mr.. Truman's
humping victory did not necessar-
fly arm him with the equivalent of
a magic wand which he might wave
over congress to bring about leg
islation in any form he may desire.
Solution?
Then there was a break on the
r imitation front. Americans who had
come to accept the inevitability of
the high cost of living raised their
eyes with surprise over the de-
velopment although it amounted
to only the merest chink in the
price barricade.
TWO THINGS happened almost
simultaneously:
President Truman ordered ad-
ministration agencies to work out
definite" anti-infation program
to be presented to the Democratic
congress in January, and the bu-
reau of labor statistics reported
dip of one-half of l per cent in its
coSt-of-living index for October.
The significance of Mr.. Truman's
proposal for anti-inf1ation legisla-
ton was established; it was some
thing to look forward to. But how
much real importance should be
attached to the almost infnitesi-
NAL break in the price line would
remain to be seen.
FOR ONE thing, the price dip
unless it grew to miraculous pro-
portions-would not cancel out any
anti-inflation measures, such as
standby" price control and ra-
tioning, which might be imposed.
Edwin G.. Nourse, chairman of
the Presidents council of economic
advisors, opined that lowering of
prices, washing out the need for
drastic controls, would be "swell."
But he didn't predict it would
happen.
Another top fiscal official said he
believed infationary forces still
had the upper hand. And Chester
Bowles, one-time OPA boss, stated
that congress ''unquestionably"
would act against initiation.
The precise nature of the pro-
gram President Truman will lay
before congress in January was
no. yet known-probably not yet
determined. It's general outline
probably will be made public when
he delivers his Estate of the
Union" message in January.
But there was little doubt that
q return to more or less stringent
economic controls was in the cards
for 1949