Evening star., 1948-01-02
Economic Crisis Adds
Hazards for Prophets
In Presidential Year
Worldwide Situation
Thut Affects Politics
Coils for Cooperation
By David Lsscysncs

Calls for Cooperation
By Dsvid LsscYsnes
Locking ahead IN Q presidential
campaign year has its handicaps
ordinarily, but when An attempt Is
made 10 appEsiss . trend In year
oe economic crisis - well, the has
ards Of prophecy ars multiplied.
Yet thsrs ars certain obvious
dens visible on the horizon. Back
In tl,s ss,mmsr of 1899 they were
visible, 700, but the Pollyanna ten
dsncy Of people generally y to turn
away from facts and engage instead
In wishful thinking.
The political situation is inter
twined with the economic crisis Of
our times. The crisis 10 not Just
national but worldwide. The whole
world is suffering from the effects
of the most devastating war In all
history.
Can the peoples Of the world work
together, increase production and
defeat in11ation7 Or will they fol-
low misguided. selfish leaders in
terested in their own ambitions and
self1Sh purposes and remain unwill-
ing to face facts-ths oldest and
most obvious facts Of all history?
One Solution to Indation.
Imitation cannot bs solved by
legislation or currency devaluations.
It can be solved only by q wide
spread understanding by the people
Of what their real duty Is to each
other. It cannot be solved as long
~ businessmen impose q price on
scarce goods beyond real values
and ~ long as labor leaders insist
that workers must be paid more
and more wages for less and less
work.
It cannot be solved by politicians
either In Government or in labor
unions or trade associations who In
sist on their own particular in
terests without regard to anybody
else's interest.
Increased production and inven-
tive genius can augment material
ly the amount Of goods that are in
short supply. Monopolistic power
to hold prices at fixed levels by con-
certed action Of producers can stunt
production just as monopolistic
power by labor unions to reduce
the work week and the amount Of
work done while demanding higher
and higher wages can paralyze the
entire economic machine.
Too many demagogues are de-
nberately misleading the American
people and many workers by tell
ing them that profits are high
enough to stand another round Of
wage increases. Other demagogues
are arguing for an excess-profits
tax with reckless disregard Of the
fact that this will help the we'll
heeled companies and plunge into
bankruptcy the many smaller busi-
nesses Of the country whose oppor-
tunities to get credit and working
capital to- compete with the larger
units = dependent on q better rec
ord Of earnings than was possible
last year.
Goal II to Destroy System.
Too many demagogues profess to
bs interested in the public welfare,
but they really want to demolish
the prodt-and-loss system and sub
stitute . system Of Government
ownership, Government financing,
and State socialism.
As long rs the rank and file lis
ten to these misguided spokesmen
and production is retarded during
1948 by strikes and demands for
higher wages, there Is q chance of
. severe depression breaking early
In the summer which Will make
1929 look like mild recession. It
would mean the defeat Of the Tru-
man Administration and more re-
strictive amendments to the Taft
Hartley law to curb labor monopo-
lies. ~
II sver there was q time for labor
craftsmanship 1948 Is the year for
1t. There are many sensible labor
leaders who know economic facts.
Can they prevail on their radical
brethren to hold the line? On the
answer TO that question depends
the fate Of 1948 and that's why
prophesying the future this time is
trying to predict whether labor
leaders are going to commit eco
nounic suicide. If one were to guess,
it would be that the true facts about
business profits in most industries
will become known and that fears Of
. closing down and unemployment
will have q salutary effect on labor
management policies.
There Is no economic justification
for . recession. The elements that
need adjustment are well known.
Imitation can be defeated by CO.
operation but cooperation is pos
sible only when the facts about
what's happening inside business
are better known and understood.
Reproduction Rights Reserved)
Man Found Dead 18 Years
To Day After killing Friend
BY The Assoeiatsd Press
PHILADELPHIA, Jan. "A So
year-old man who police said acci-
dentally shot and killed a friend
-. Noxxy vao We Hsx,~ 1 o ~v~o 800 - -~o ,rn.