Evening star., 1949-03-31
|TrumanSti||Ca||s
For Tax Boost,
Standby Curbs
Says Nation Faces
Deficit in Disputing
Georges Views
MERCHANTS CAUTIOUS Buy
ing Chief Cause of Slump in
Business Loans. Page A-31.
By joseph A. Fox


President Truman said today he
still wants a $4,OOO,OO0,000 tax
increase and his anti-inf1ation
program, including standby price
controls. to keep the Nations
economy steady.
Mr.. Truman told news con-
ference that the deficit facing the
Nation at the end of the current
fiscal year offers a far more seri-
GUS threat to a stable economy
than would a tax increase.
He made the statement in dis
agreeing with views expressed by
Senator George, Democrat, of
Georgia that the tax increase
requested by the administration
would be a sure way to send the
country into a depression. The
President said fatty he thought
Senator George was wrong.
Mr.. Truman has estimated a
$500 900, 900 to $700,000,OO0 deficit
on June 80.
Emphatic on Controls.
Mr.. Truman also was emphatic
in declaring he is sticking by his
request for standby price and wage
controls. He emphasized that he
thought they were as necessary
now as they ever have been, de-
spite evidence that the inf1ationary
threat is disappearing.
The fact that he had asked for
the curbs, the President told
questioner, was a big factor in
warding off imitation.
Mr.. Truman declared he knew
nothing about the shelving of his
request for standby controls and
added that he thought he would
have been informed if such step
had been taken. Key Democratic
Senators were reported today as
agreeing that the current read
justment in the Nations economy
probably had removed any need
for the controls asked by Mr..
Truman.
The President, N mis- news con-
ference discussion of economic
conditions, said he would ask for
a years extension OF curbs on
installment buying.
He also said that DR.. Edwin 6.
Nourse is not resigning as chair
man of the Presidents Council OF
Economic Advisers, as DR.. Nourse
himself said yesterday. There
have been reports that DR.. Nourse
was resigning because OF differ
ences with the other two members
of the council over the way the
administration is handling the
economic situation.
One of the Democratic leaders.
commenting on whether the Pres
ident now requires standby price
and wage controls was Senator
O'Mahoney of Wyoming, who said:
There can be no doubt that
recent price decreases have re-
duced demands for controls"
Hearings May Be Delayed.
AS chairman of the Joint Sem
ate Economic Committee,
Senator O'Mahoney previously
:aad urged the standby authority
for the President to invoke selec-
tive price and even wage controls
to meet dangers of imitation.
Senate Majority Leader Lucas
said the presidential controls bill
is not on list of measures now
being pushed.
And Chairman Maybank OF the
Senate Banking Committee said
any hearings on controls probably
will be delayed for some time.
Chairman Mcclellan of the Sem
ate Expenditures Committee said
in a separate interview:
Frankly I think the danger OF
imitation is passed"
Snyder Statement Supported.
All four Democrats agreed with
Secretary of the Treasury Snyder's
press conference estimate yester-
day that the Nation Is under
going healthy readjustment' and
the business outlook is for con-
tinued prosperity.
Mr.. Snyder said the Govern
ment could not lower its tax rev.
enue total. That was an apparent
rebuff for congressional sugges-
tions of new tax reductions. But
at the same time the Secretary
made no mention of President
Truman's earlier demands for
"a 900 900, 900 of new taxes.
DR.. Nourse failed to plug for
government controls yesterday
after a talk with the President.
DR.. Nourse said inf1ationary
dangers still are possible. He
listed as possible causes a big in
crease in Federal spending, big
wage increases or a serious crop
fo i1,,ro