Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1949-02-24

the public is worrying about the
economic future of the country
even though the United States has
just passed through the ten bust
est, most productive years in his
tory. The higher cost of govern.
ment will inevitably mean more
taxes and higher prices for all Of
us, according to Duncan Morton
Taylor. Writing in McCalPs fol
February, he points out that the
answer to our imperiled stabilit!
depends on President Truman
fundamentally a conservative, ant
on Congress-:
an 1888, Americans had mere
So billion dollars in their pockets
and their banks; in 1948 they hat
some ITO billion dollars. Those II
years had been the busiest, mos
productive, most expansive il
history.
"But even so 1913 ended in ar
atmosphere Of some suspense
How long could it last? Don't
borrow some bankers advised
The pinch is bound to come
sooner or later The experts ex.
amined every observable stress
and strain and reported theii
findings: business was encounter
ing buyer resistance, there were
soft spots in some lines. The cost
of living had dropped one half of
one per cent.
at was agreed that a general
collapse of prices would cause
plant shutdowns, unemployment
wage cuts-in short, bring down
the whole economy. But there
was more evidence that the econ
omy was still strong, that most
jobs were safe and if anything
the country might look forward
to more expansion, possibly more
dangerous initiation. The place to
watch was Washington.
"As Harry Truman took ovel
again and the 81st Congress con
vened, three major problem:
doomed over the country: foreign
relations, military security anC
the welfare of Americans al
home. The World Economic Re
covery Program would cost tn,
country upward of seven and /;
half billion dollars, the defens,
program upward of Is billion dol
lars. The cost of the President
social welfare program was al
most impossible to estimate. TIL,
cost of government, even withou
the social welfare program, wa
going to be higher than at an,
time since the war. 1t would hav,
been, no matter who had beef
elected President.
Zone way or another everyon,
was going to help pay for foreigl
aid and gigantic Defense Estab
lishment. Although the awful mo
ment would be postponed as Ions
as Congress could postpone il
taxes would probably have to b
increased-larger assessments Of
corporations or in levies on per
sonal incomes. One way or an
other these would be passed o.
down to the public.
what effect would these hug
federal expenditures have o.
prices? 1t must always be remem
bered that prices are created b,
'demand, and the abnormal de
mand caused by shortages durin,
the war was gradually being re
duced. The economy was begin
ming to operate in a more norma
fashion. But so long as 60 million
people were employed deman,
would be unflagging.
"There was not going to be an,
lessening of demand for goo,
food. Another record crop woul,
set food prices down a little, a
last years record crop had. A ba,
crop, on the other handy woul,
send food prices soaring to tn
moon.
Labor, with its eye on som
extraordinary corporation profits
was out to get another round o
wage boosts. Since price boost
follow wage boost, the results o
the drive could be predicted.
by this time Mr.. Truman ha
outlined his program in a serie
of messages to Congress: on tn
Budget, on the State of the Uniol
and in his Economic Report. Il
the main these messages answe
the questions: Where does tn
President think we should go from
here?'
"Mr. Truman has confidentl.