Evening star., 1949-04-03


main movement 10 nshi fQuA!.v
allltleS than II did last D~crm-
6cf OF III least Fnarkine time I'm
I'll the spring helps 10 clarity ias
economic picture.
Tire SenAse BanklnE ana c..
reney Committee planned 10 ho.a
.ull~ dress hearings dugtns Mascs
on The administration cconcm.c
legislative program The hearings
have been postponed pag'., ~
cause of tire Senate f1.bustrr Or.
lays but also repoTtedN eccslse
April Is deemed mere opposf4-s
oeC aston
Plenty oi Moves Ready
so far as Administrative studies
ot authorization safeguards Ats
concerned. some agency osnc3as
explain that even undcy eNlStlaE
statutes and regulations The Gov
ernment would not be eauEht
short OF helpless IN eoping rapidly
With defiatlonaIy perils
Among possible immediate
moves they outline are sXpanslon
Of credit through the Recon.
strnctien Finance Corp and re-
moval or revision Of various sen.
eral credit rules,
A decrease In taxes and the
start OF . bis scale public works
program and land reclamation
projects likewise are mentioned
as potential steps Aides foreses
no heavy roadhlocks in Congress
in event OF demonstrated eco
nomic declines.
In view OF the admlnistgAtions
recommendation for increased
taxes the likelihood Of q switch
TO lower levies AT this moment 10
remote.
There nevertheless has been
talk among administration Ad-
visers Of q plan wherebs Congress
might be asked to ALLOW the Pres
ident to raise or lover tax rates
within q spec led range ard for
sharply defined purposes such IS
helping business or enoouraglns
investment II the situation
''worsens"
Another idea Ia that diminishing
purchasing power OF consumers
could intensity II not hrins about
a depression. That theory. some
times advanced as q cause for the
troubles OF the early is30s Ia far
from being universally accepted.
but It ties in with current oues-
tions about production and prices.
The s64 question is how 10 atop
production from dwindlinR ard
thereby contributing 10 sweeping
unemployment and waEe drops A
partial solution. In the opinion Of
some observers. is that business
should be persuaded To lower
prices before trimming output.
This. It is argued, would encourage
consumer buying and avoid lay
offs.
Warning on Jitters
Whatever anti i~defiatiun plans
are in circulation or speculation.
growing numbers Of people In
Congress and administrative asen-
cies today are paraphrAslng ths
expression about fearing fear IT,
self. They warn that the greatest
danger Ia not imitation or dsfia-
ton but the possibility that busi-
ness or the general public or
Government Itself might dig q
defiationary grave by giving In TO
iltterS. senseleAS worries OF india-
criminate klashes.
They cite. for example. such
developments as.
The Bureau OF Labor Statistics
report OF the kharpest break in
living costs In nine years. y slight
drop in take -homs pay OF factory
workers. 3.200 600 unemployed In
February. falling farm prices and
narrowing real estate loans oy
banks.
But all these DO not necessarily
tend toward hard times. Lover
prices might bring additional
buying. in the opinion OF BLS
offlciais. Main industries are eon-
tinulng To produce At capacity.
the Joint Committee on the Eco
nomic report finds,
National income is ak hlsh &c
ever. Unemployment. while cause
for concern. has moi reached
dangerous proportions and does
not Offset the fact that present
employment Ia greater Than year
ago. Business profits hold strong.
the Commerce Department states
The ''readjustment, while sofTas-
thing 10 write seriously soo'it.
tSee WALSH. PAGE C-Ap