Evening star., 1948-04-28
Deficiency Racket
Assai|ed by Bridges
In u. ). Chamber Talk

III U.E }. IndmDe[ Idk
"The deficiency racket" depart
mental propaganda tricks" and
selfish local interests were
blamed today by Senator Bridges,
Republican, of New Hampshire
for congressional inability to
assume full control of the coun-
try's finances.
Speaking before one of five lunch
con meetings of the United States
Chamber of Commerce, the chair
man of the Senate Appropriations
Committee admitted he was "ap-
palled by the constant demands of
the executive departments and
agencies for every imaginable kind
of frill."
At another luncheon, the admin
istration was charged with giving
imitation another shot in the arm"
with the war scare it has dis
covered" The charge was made
by Jay D. Runkle, board chairman
of the National Retail Drygoods
Association.
Senator Bridges, Mr.. Runkle and
Senator Wiley, Republican, of Wis
consin headed a group of Is speak
ers appearing before the chambers
36th annual meeting.
Congress Is Defended.
Defending the Eightieth Congress
as having lin six months reversed
the trend (of spending) of the pre-
vious IS years." Senator Bridges
called for "a lot more support from
those who profess to be economy
minded"
He described the deficiency
racket" as a method by which de-
partments and bureaus spend their
annual appropriations in a few
months and then call on Congress
for more money Such requests,
he said. frequently lack even a
semblance of legal Justification. :"
But, he added ruefully, IF Congress
were to refuse, a wild storm of
protest would ensue"
Every conceivable propaganda
trick is used, he said, to get indi-
vidual appropriations raised above
necessary levels. He cited a num-
ber of examples.
Asserting that nearly every one
was for economy so. long as it
didn't cramp his own style, Sena-
tor Bridges said these erstwhile
advocates of economy are among
the first to communicate with me
and my colleagues, urging the re-
tention and even the expansion of
that function which is of service
to them"
Warning Is Issued.
He concluded with warning that
even a slight recession now would
throw the Government into deficit
spending..
Mr.. Runkle, who spoke at a
luncheon session considering What
to Do About Prices" charged, 1T was
pretty evident that there were some
badly scared politicians in Wash
ington early this year who were
afraid that prices might actually be
reduced and bring about defation.
The war scare fixed that up for
those who were anxious to ride the
bandwagon to victory in Novem-
Der. No one seems to want
to kill Santa Claus just before elec-
ton.
Further imitation is not neces-
sary,' he said, IF the Government
will conduct this business of re-
in a sensible manner and il
the propaganda machine is turned
off in Washington"
Senator Wiley Speaks.
Senator Wiley's address was an
appeal to the insurance men of the
Nation to demonstrate "a capacity
for self-regulation in the public in
terest." He reviewed legislation de-
velopments in the insurance field
since 1914 when the Supreme Court
ruled that insurance writing was
subject to the provisions of the
Sherman Antitrust Act if it crossed
State lines.
At a fourth luncheon, Joel Dean,
former OPA official and now Co.
lumbia University economist, pre-
dicted further rise in prices "at
the same kind of rate we have
averaged since OPA" was repealed.
The voluntary program adopted
by Congress (for rationing) is far
too feeble to do thes job. The po-
litical climate is quite unfavorable
to the kind of rough and tough
measures that are needed now" he
said
Members Of the Chamber were
expected to go on record this after
noon in opposition to the construc-
ton of a s52,o00,000 steam power
generating plant as part Of the
Tennessee Valley Authority at New
Johnsonville, Tenn.
The chambers president. Earl o.
already has called its at
tention to s15,0O0,o0O 900 in ap-
proved public works projects
throughout the Nation and appealed
for the State chambers to oppose
locally sponsored Federal-financed
public works.
Serious doubts that the Soviet
Union Is willing or able to wage war
at this time was expressed by Allan
u. Pope, chairman Of the Finance