Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-12-28
Economic Signs Warn
OF Serious Depression
In Autumn Of 50
Writer Sees Union Labor
Moves Bringing on New
Cycle Of Initiation
Bv David Laurence

SyItS VI IuItutioi
By David Laurence
Serious storms in the economic
weather of the United States
would appear to lie ahead for the
last quarter of 1850 and possibly
for a long period Of time there.
after in what could develop into
the worst depression in American
history.
Signs of the storm that's brew
ing are already beginning to ap-
pear. Here are some of them:
/. Union labor strategists have
decided not to permit any amend
ment of the Taft-Hartley Act al
the coming session of Congress
and to attempt to force through
in January, 1851. one-sided pro-
union labor law If pro-labor Rep
sentatives and Senators art
elected in November 1850.
2. The AFL has announced thai
despite it's forecast of an unem'
ployment figure of 100000 fol
1850, or 100000 above 194e, al
affiliated unions have been urgee
to demand another round OF sub
stantial" wage increases.
8. White House officials an
nounced that President Truman
would consult CLIO and AFL of.
ficials in advance of selection of
new member to fill the vacanc!
on the National Labor Relation!
Board. This is a quasi-Judlcla
position and neither employer Of
PLANTATIONS nor unions should bt
consulted as to the kind OF man tt
be appointed if the law is to be
construed by a fair set OF judges
as contemplated by Congress.
Adds Up to New Cycle.
All this adds up to new cycle
of imitation with higher ano
higher prices and more and more
unemployment as the dollar buys
less and less.
Once the inflationary trend sets
IN again, the crash that may come
would be difficult to check be-
cause the momentum of the spiral
may gain unprecedented speed
this time.
For the last two years, since the
Taft-Hartley Act was passed, the
productivity of labor has gradu-
ally increased and there have
been relatively few work inter
ruptions and these in only few
industries. If the November, 1850
elections should give Congress a
pro-union majority in both houses
and the Taft-Hartley Act is re-
placed by a one-sided law. wave
of strikes will be inevitable. Pre-
sumably the injunction process
would not be available to save
the Nation from the hardships
that can come when industries
essential to public health and
safety are paralyzed.
Another round of wage increases
in 1850 will unquestionably upset
the price structure. The steel in
dustry is already advancing its
prices to cover the higher costs
Of labor, among them pensions for
which enormous reserves for past
service have to be established.
Buyers Strike Forecast.
# the fourth-round epidemic is
deliberately spread out through
all industries, another buyers
strike will ensue. Unemployment
will increase. The tax collections
will diminish. The Federal deficit
will grow larger. Marshall Plan
aid to Europe will be cut drastic
ally and communism will have its
innings once more In continental
Europe.
Russia has been biding her time
waiting for an American economic
crisis-not, however, because she
wants to start q shooting war, but
because such a crisis will enable
her to irifiltrate in both France
and Italy, and when this is &C
complished, Germany will fall into
the lap of communism. too. The
Soviets know that there isn't
money enough in America to build
a defense in a military way against
continental Europe once all the
industrial resources of Europe are
under Russian control.
The elections of November, 1850
will be the most important in a
half century or more. In many
ways a showdown on the issues oil
q solvent or a bankrupt state with
q labor controlled Congress, or ar
anti-radical majority composed OF
Northern Republicans and South.
ern Democrats will clear the all
and point the way for 1852. II
the pro- union and radical ele-
ments win in 1850, the election OF
President Truman for third term
becomes assured and the spend
thrift state Will become an actual
ity. The period of moderation and
restraint Of the last year appears
to be coming to an end with the
apparent decision of the labor
leaders to 60 all out for a com.
pletely controlled labor unior
government.
Reproduction Rights Reserved)