Evening star., 1948-11-24
Nourse Cautious
Over Slight Drop
In Living Costs
Makes No Prediction
Of Further Drop-oH
In InfIution Spiral

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A slight drop in living costs,
first overall decline in retail
prices since March, was regarded
as a hopeful sign today, but the
man intrusted to write an anti
imitation program said, I'VE
aren't drawing any conclusions
yet
DR.. Edwin G. Nourse, chairman Of
President Truman's council Of eco
nomic advisers, made his cautious
observation after the Bureau Of
Labor Statistics reported a decline
of one-half of per cent in its con-
sumers' price index for october IS.
A continued steady drop-off in
prices would be fine, Dr. Nourse
said, but he did not predict that
would happen. The most optimistic
view from any quarter was that Mr..
Truman might temper his demand
for standby price control and ra-
tioning powers when Congress meets
in January.
Congress Expected to Act.
Chester Bowles, former price ad-
ministrator, said after a visit to
the White House that Congress "un-
questionably" will take action
against imitation. The Governor
elect of Connecticut added that any
curbs enacted probably would not
be as drastic at OPA.
A IL per cent drop in food prices,
top item on the housewives budget,
was responsible for bringing the en-
tire price index down half a point
from its all-time high of 174.5 for
August and September.
All other major items, including
clothing, fuel, electricity, refrigera-
ton, household furnishings and
rents rose slightly.
In Washington, food prices fol-
lowed the national trend and dipped
IL per cent for the month ending
October IS, the fourth consecutive
month of decline. Only egg prices,
which advanced seasonally by So
per cent, and beverages, which re-
manned the same, failed to fall.
Meats Drop 3 Per Cent.
The largest factor here was q
drop of per cent in average prices
Of meat, poultry and fish. Dairy
products dropped 8 per cent, as
contra seasonal declines Of 9 per
cent for butter and per cent for
evaporated milk more than Offset
1ls per cent rise in cheese. Fruit
and vegetable prices were nearly 2
per cent lower.
The Washington retail food price
index was 2092, or 8 per cent below
the June peak, but per cent higher
than a year ago, a. per cent above
June. 1916, and l22 per cent over
August, 1899.
CThe price index is based on a
figure of 100, representing the
consumer costs of an average
family for the years 1935-1939)
While some officials close to the
imitation machinery believe MIR.
Truman would be happy to report to
Congress that the need for controls
has abated. others said much de-
pended on how much money will be
asked for foreign aid and National
defense.
DR.. Nourse yesterday was named
by Mr.. Truman to head an informal
committee of cabinet members and
agency heads assigned the Job Of
blueprinting the new anti-inflation
program.
Several agencies already have
been hard at work on proposed con-
troll legislation to be submitted to
the White House by next Monday
for consideration by the President
and the Nourse Committee.
Suggestions Considered.
Officially or otherwise, these sug-
gestions are said to be in the works:
/. Rent control extension for "et
least" one year, with wartime en-
forcement powers restored.
2. Extension of export controls.
8. Continuance of voluntary allo-
cations, backed up by standby au-
thority to ration steel and other
scare materials to essential users, II
necessary. All three of these laws
expire February %.
4. Expansion of Government con-
troll over bank credit, along with ex-
tension of the present curbs over
installment buying which run until
June 80.
S. Some kind of strengthening OF
anti-monopoly laws.
6. Possibly an excess profits tax
to discourage overpricing and avert
the predicted Federal deficit. Some
officials, however, think this would
unduly depress business. They pre-.
fer far less drastic tax legislation.
A Republican Senator, Flanders
of Vermont, said yesterday profits
are soaring toward an estimated
$50 900, ,00O, 900 record this year. Con.
gress wants to know, he told report.
ers, what is going to be done about
them.
A subcommittee he heads will
open hearings December z. Among
other things, he said, the committee
will try to find out how much OF the
profits merely reflect imitation ana
should be kept in business las a
r,,eh;on aoainst an economic slump.