Evening star., 1948-07-30
Initiation Peril
|gnoredon HILL,
Truman Says
Report Of Advisers
Citing New Dangers
Sent to Congress
By Joseph A. Fox
By Joseph A. Fox

President Truman warned Con-
gress anew today of developing in
fationary conditions which en-
danger both our domestic strength
and cur place in world affairs" He
accused Republican lawmakers of a
blind disregard" of the imitation
evil.
Lasting prosperity is not as
sured," the President declared in
calling again for laws to "forestall
business collapse" such a crash
may come, he said, as sudden eli
max to the leapfrog game of wage
and price increases.
In the face of the icy reception he
got on Tuesday when he presented
his program in person, Mr.. Truman
renewed his demand for sweeping
anti imitation powers in sending
Congress the semi-annual report OF
his Council of Economic Advisers
The report reemphasized the fac
tors making for instability in the
Nations business structure.
1T is not too late for preventive
measures, and we are not yet forced
by the tragic consequences of de-
preston to adopt measures which
would interfere with our free econ
omy far more than would any or
all of the measures have proposed, y
Mr.. Truman said. Il realize that
the anti-inf1ationary program l
have offered will impede some busi-
ness plans, will curb some profit
opportunities and may limit some
wage advances. 1t is of the very
essence of a plan to counteract in
flation that this be done. All groups
will ultimately benefit when it is
done"
The council. set up under the En-
pleyment Act to chart business
trends, found three primary sources
of the infationary troubles facing
the country.
1-Consumer demand for goods
and services; business demand for
investment goods and demands aris-
ing from expanding Government
defense and foreign aid programs
which press strongly on production
2-The third round "of substan-
tial wage and price increases in
major basic industries whose effect
is felt in many related lines.
3-Continuing credit expansion.
THE facts add up to clear and
disconcerting conclusion" the econ
mists' report said. I'm spite of some
favorable factors, we are in the
midst of gathering infationary
forces which day by day are i'm
posing additional hardships on
countless families, and day by day
are undermining the foundations of
the remarkably high level of post
war prosperity that we have thus
far maintained"
The report said new housing may
price itself out of the market "in a
few years at most" if present costs
continue.
Cost Rises 20 Per Cent in Year.
The average cost of new houses
has jumped 20 per cent in the past
year while the average family's in
come after taxes has gone up only
about per cent, the council said.
The council agreed with industry
estimates that the Nation will get
more than 100000 dwellings in
1948, including remodeling jobs.
About 100000 new houses and apart
ments were started in the first six
of the year.
Two counteracting influences to
the general inflationary trend, the
report said, are improved agricul-
tural production and an increase in
industrial expansion.
In amplif1cation it was said that
while the full effects will not be
felt for some time yet, the greater
abundance of basic crops should
be of signal aid in the checking of
initiation and the progressive work.
ing out of stable relationships
On the industrial side the report
said, I'VE appear to be nearing the
end of the strong impact of war
See ECONOMIC, Page A-6,D