Evening star., 1948-02-12
The Political Mil
Trumon Wrong Agar,
Fall in Prices Shows
Drop May Eliminate Election Issue II
Democrats at a Loss
By Gould Lincoln

BY G0Hld Lincoln
A week ago President Truman insisted he
still wanted price control legislation; that It
was needed to check drastic imitation which
might run riot. He spoke at press conference
day after the first break in the commodity
markets Succeeding days have showed prices
lower and lower, until the consumer is now
paying less for his pork his -four his butter
and other necessary items. Unless there should
be tremendous reversal of form, prices will
continue to fall
The politics of the situation is obvious Price
control and rationing Legislation is dead as .
door nail. If prices Of commodities continus
to fall, high prices will not be an issue In the
coming campaign. Demands for another wide-
spread increase in wages either will not mate.
rialize or will fail.
What will all this do to Mr. Truman, seeking
reelection? He will have been proved wrong
again-as he was when he demanded $200o,-
000000 from Congress Immediately after
the war ended to Offset an expected tremen-
dous unemployment The unemployment never
materialized. He will have been wrong again
as he was when he took position that wages
could be increased without increasing prices
position into which he may have been drawn
by his then Secretary of Commerce, Henry A.
Wallace.
Crash Not Yet In Sight.
Production-always the answer to high prices
has begun to catch up with demand. Crop
reports in this country and around the world
have indicated there will be ample supplies Of
grain-possibly surplus And gradually the
production of manufactured goods is coming in
sight of the supply necessary to meet all
demands. There is no crash yet in sight
for the demand iS still hph eYnplovnaepf ia
full. But there is opportunity for levelling-
off process, with reasonable prices and the
threat of imitation out of the window.
Now that prices are falling screams are
coming naturally from those who benefited
by high prices-and from those who made
money trading in commodities and stocks. To
the great mass of Americans, however, q re-
duction in prices is boon. That they are
not beholden to Mr.. Truman for cut in their
cost of living Is something that will sink in.
Republicans generally view the price recess
sion as favorable to their cause. However,
there are those, particularly from the farm
States of the West, who may be expected to
join clamor for Government support Of COM
modify prices-despte the fact that producers,
handlers and traders in these commodities
have been making inordinate returns during
the last two years. That. too, is politics.
May Need Other Issue.
The attitude of the Democrats toward the
price reductions is still to be developed. They
have been calling for price controls and price
reductions for so long they seem at loss for
the moment Secretary Anderson of the De-
partment of Agriculture has been charged by
Senator Taft with seeking to bolster the falling
grain market by offering to buy grain for the
Government. This Mr.. Anderson has hatly
denied. But any huge purchases now by the
Government, which might be calculated to halt
the price drop will be looked upon with suspi-
cion. Obviously the administration cannot
have 1t both ways-and If high prices was ths
issue upon which it hoped to win next falls
election-as charged by Republicans-it must
find some other issue.
Already the Democrats have begun to say
that the Republican tax reduction bill must
not be put through-since prices are falling.
They take the ground that with falling prices.
revenue returns OF the Government will df.
minish greatly, and that the present tax rates
must be maintained. or there may be a deficit
next year. That is not necessarily so II
Government expenditures can be curtaCed by
billions of dollars, the tax returns, II produc-
ton and employment keep up, should be ample
to permit of reduction in the income tax
the same income tax practically, tnat the
people paid during the waf.