Evening star., 1948-07-29
Truman Asks Ro||back Authority
With Aim Of Ha|ting Price Spiral;
Porter Sees No Reduction Now
Nov. loH Goal Sci
But Power Might
Not Be Used
BY ChoImers M. Roberts

dShco cos lOi power 10 SET
prices 80 far as practicable" at
he November. 1947, level, but
indicated that the rollback au-
thority was not expected to re
duce the general price level
now"
Paul A. Porter. former OPA chief
now serving as a special assistant to
President Truman. said in present.
ing the Administration program to
the House Banking Committee that
the best the Administration hoped
was to "end the upward march of
prices and to reduce, so far as is
possible at this late date, the threat
of future collapse
Mr.. Porter said. in answer to
questions by Chairman Wolcott, that
the commodities proposed to be put
under price control include meat,
dairy products, clothing, steel and
some other metals.
But he indicated the Administra-
ton has no firm intention to use
the rollback authority, should it be
granted by the Republican-con-
trolled Congress, even in the case of
meat which has led the upward
spiral of prices.
Aim to Halt Further Rise.
The proposed legislation said
levels of November. 1947, should be
the base but that price-slashing
ceilings" must take into account
rises since then in costs, and other
factors.
Mr.. Porter reiterated the Admin
tStration's feeling that if the Presi-
dents 8-point anti-inf1ation pro-
gram prevents further increases
it will have achieved its major
point"
The only way a rollback could
take effect, he said. would be to
have the price reduction absorbed
from the profits of the industry in
volved. An investigation and find
ing in each case would have to pre-
cede a rollback order, and Mr..
Porter said he would make no fiat
statement, even in the case of meat.
that such program is now con-
templated.
The bill merely gives us the
authority to do that" he told re-
porters.
The bill does not include any pro-
vision for Government subsidies,
such as those paid to producers
during wartime OPA to roll back
prices.
There appeared little likelihood
that the House Banking Committee
would approve any such price con-
troll authority as that suggested by
Mr.. Porter. Chairman Wolcott, in
an exchange with Mr.. Porter,
blamed present high prices on the
administration, especially on its
failure to make use Of anti-inf1a-
tionary authority he said it already
has.
Costs Up ~ Since November.
Living costs, as measured by the
Bureau of Labor Statistics. went up
al per cent between November
lo47, and mid-June, 1948. Food
prices alone advanced SIS per cent.
Across the Capitol. Thomas B.
McCabe, chairman of the Federal
Reserve Board, explained to the
Senate Banking Committee another
point of the administrations pro-
posed anti-inflation program.
This calls for giving the Federal
Reserve Board authority to increase
the amount of reserves bank
must have. The reserves" are the
amount of cash hand COR on de-
post with the Federal Reserve Sys-
tenn that bank must keep.
The idea is this: Increased reserves
will mean less money the bank has
available to lend. The cut in its
loaAs will mean less money going
into trade to bid up prices.
Mr.. Porter had hardly got before
the House Committee when members
began demanding to know just what
commodities might be put under
price controls.
Meat and Milk Mentioned.
Meat certainly is the most con-
spicuous, Mr.. Porter said. Fluid
milk and dairy products have been
discussed by the Agriculture Depart
ment.
The clothing situation is one that
should be given immediate attention,
and building materials should cCme
in for consideration
Mr. Wolcott asked Mr. Porter
several times TO list items that would
be controlled. Mr. Porter said he
was not authorized at this time" to
give a complete list.
DO you think that this Congress
is going to give the President carte
blanche authority without details
on how he is going to use the con-
trols?" Mr.. Wolcott asked.
Mr.. Porter said cabinet officers
1See INTIMIDATION, Page A-4.)