Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-07-31
Criticism by EccIes
Bo|sters Opposition 10
Anti-|nfIationPr Program

Criticism from within the ad-
ministration gave added am
munition to congressional op-
ponentS of President Humans
anti-inflation program today.
Mariner S. Eccles, member and
former chairman of the Federal
Reserve Board, told the Senate
Banking Committee late yesterday
that the Presidents proposals to
halt rising prices are futile and
contradictory.
Asserting that the program as a
whole certainly does not make
economic sense" Mr.. Eccles said
some parts of it would be. helpful
while others, such as housing pro-
posals, would be inf1ationary.
Construction Costs Rise.
His testimony conceded with
these developments:
/. Government agencies estimated
that housing construction costs this
year will run $1,100, 100000 over es-
Inmates made last November.
2. The Agriculture Department
reported that the level of farm
prices increased per cent between
mid-June and mid-July. and saio
the years peak in meat prices may
come late in the summer or early
fall.
3. The Federal Reserve Board re-
ported that consumer credit in
creased 1891 ,0o0, 900 during June te
another record high OF $l4, f49 900,
600.
Mr.. Eccies, who was forced by
President Truman to resign as
chairman of the Federal Reserve
Board after a dispute with Treasury
Secretary Snyder last fall, said he
is not planning to quit his place as
a member of the board.
This is no time to run out he
told reporter.
Controls Lifted Too Soon.
He charged before the Senate
committee that the Administration
removed wartime controls on inf1a-
ton too soon. He compared the
new Truman proposals to trying to
put Humpty Dumpty together
again" and trying to fill up bath
tub with the stopper out
In sending to Congress yesterday
the semiannual report of his Coun-
Gil of Economic Advisers, Mr.. Tru-
man urged a new enactment of laws
giving him authority to control
prices. wages and credit and carry
out other parts of the anti-infation
program he submitted to the special
session on Tuesday.
Mr. Eccles singled out for vigorous
the long range housing
program urged by the President and
already passed by the Senate. term
ing it "inflationary.''
Senator Mccarthy, Republican,
of Wisconsin suggested that SER
ious construction slump may result
this fall unless Government insur-
ance of home building Is extended
and expanded.
Defiation Long Overdue"
"A deflation from inflated prices
is long overdue Mr.. Eccles asserted.
If we get it in october or Novem-
Der the sooner the better"
The estimate of increasing hous-
ing costs came, meanwhile. from
the Commerce and Labor Depart
ments. They raised their estimate
of the total housing outlay this
year from $4,000, 100000 to s7,100,-
900 900, explaining that the average
construction cost of houses is run
n1ng substantially higher than ex-
pected.
THE purchasing power OF the
construction dollar has declined
until the amount of work estimated
to cost $4,000, 900 900 today could
have been done in 1899 for a round
So, 500, OO0,0 00," the Labor Depart
ment said.
Mr., Eccles also testified that the
Presidents proposal for Tightening
bank and consumer credit controls
would actually weaken the Fedora!
Reserve unless applied also to banks
not belonging to the system. He
said the plan was drawn by the
White House and not by the Fed
eral Reserve System
Asked why he thought he hao
been deposed as Federal Reserve
chairman, Mr.. Eccles said: Il don
know any more than any one else
does" He added that he had worked
for the anti-inflation program the
had appeared te
want. Il was too assiduous," he
continued, too aggressive. and 1t is
no doubt true that I offended GER
tain groups that benefited from
imitation. I therefore became a po-
litical liability"
The Federal Reserve report on
consumer credit showed that total
installment credit was at record
high of it's own-$7 1872 100000 at the
start of July, with automobile in
stallment credit making up $751;
100000 of this.
The Agriculture Department said
the index of prices received by
farmers for their products in mid
July was 3O1 per cent of the 1909
IA period. This compared with 295
per cent a month earlier, 276 a year
ago and with a record of BOT last
January. The mid-July level of farm
prices, the department said, was 20
per cent above parity, compared with
18 per cent a month ago. The in
crease was led by advances in meat
animals, dairy and poultry products
Meat supplies are expected to de-
cline further during the weeks i'm
ahead and to reach the
years lowest level in September.
LAS meat supplies decrease" the
report said, prices are
expected to increase further. De-
mand for meat is stronger than
year earlier because of higher wages
and other incomes"
The report held out little hope
for improvement in meat supplies