Evening star., 1949-06-17
Decisions Of Congress
In Next 50 Days Seen
Crucial for Business
Stock Market Echoes Feors
Of Public on Four Mojor'
Problems Of Economy
By David Laurence

Businessmen have been wonder
ing why the stock market has been
80 low and why. In particular. the
public isn't buying stocks when 1t
is acknowledged that 50 many
securities are way below their true
value In terms either Of earnings
or of assets.
The public seems to have become
frightened about something. and
the customary answer heard Is
that fear Of the future trend OF
business Is at the core of the whole
problem of investor confidence.
The next go days are to be
crucial. Within that time Amer
lea will have made some fateful
decisions which can have a sub
stantial influence on national psy-
chology and especially on business
men. Here are some of the ques-
tions that will have to be answered
one way or the other in the next
two months. Most Of them Will
have to be decided by Congress.
-Four Major Problems.
/. VIII the budget be balanced
or will the United States resume
deficit financing?
2. VIII the Taft-Hartley Act be
replaced by law that gives the
unions absolute freedom from
restraint so that strikes and labor
disputes will multiply and inter-
fere seriously with production?
3. Will the ECA funds for
Europe be seriously cut and the
whole European economic situa-
ton forced into q defiationary
trend, thus affecting international
trade In which the American econ
omy Is deeply concerned?
4. Will the situation with Rus
+ sia clarity to the point where some
long-range planning can be done
by businessmen without fear Of
international crises or a rising
budget for military expenditures
which create shortages Of raw ma
terials?
There are dozens Of collateral
n,Iestions that grow out of these
four major problems. They all
add up to the same thing-some
effort to find an economic equilib-
rum In which prices can level on
and put an end to the stalling be-
tween buyers and sellers.
While 1t Is true that fears OF q
recession and even deep depression
have been engendered through the
reports Of how production has de-
clined In the first six months Of
this year, there are many factors
which are present. today to
strengthen the situation that were
not present in 1929 when the last
major depression began.
The need at the moment Is for
a true appraisal of the things that
are bringing uneasiness and weak
ness. Most of them stem from the
failure Of Congress to clarity
doubts and take a position on cur
rent questions that touch the
future of business.
Key Here in Washington.
Concretely. there would be a
resurgent confidence and a rise
In stock-market values If Congress
made up Its mind to balance the
budget for the fiscal year which
begins July / and If Congress en-
acted q labor management law
that held the scales even between
the two groups that WELD great
economic power. An early decision
on ECA funds would help stabilize
the international trade situation.
A prudent policy on fiscal affairs
here would thrill the whole world.
Many things can be done to show
that American economic leader
ship is such that readjustment
need not be q depression. But the
key is here in Washington-in q
majority of the Congress. whose
decisions on policy are anxiously
awaited by the country.
Another uncertain factor is the
policy to be pursued by John L.
Lewis and the mine workers union
whether they 60 on another work
stoppage after the present nego-
tiations are concluded or enter into
q new contract and into an era OF
peace. The recent assertion Of
economic power to bring an inter-
ruption in production Of coal for
"stabilization" purposes startled
Congress.
Shall any economic group have
the right to shut down production
and use as its instrument q ma
tional union with the closed shop?
Congress has the answer to that
one in the antitrust laws which
have in recent years not applied to
unions. Judicial decisions have
given unions immunity from prose-
cution for restraint Of trade. Con-
gress can remedy that defect by
a simple piece of legislation.
The fact that labor unions now
exceed In many respects the eco
nomic power Of even the large
corporations and assume rights Of
supervision over what shall or
shall not be produced makes many
businessmen wonder whether a
free economy and q competitive
system can be fostered when any
one group is immune from monop-
oily laws.
The situation as o whole is drift
ing toward o climax. Unhappily.
there is no White House leader
ship In these critical times, and
hence the Nation is more than
ever dependent on craftsmanship
In Congress.
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