Evening star., 1949-02-20
Economic Council Rift
Reflects Uncertainty
Here on Price Outlook
By the Assoeiofsd Press

By the Asseeiofsd Press
The Presidents Council Of Eco
nomic Advisers is divided. both on
the need for strong anti-infation
controls and on whether the coun-
Gil should take a public stand on
legislation. i
John D. Clark. one Of the three
members. told the Congressional
Joint Economic Committee last
week that direct action against
price increases Is necessary" Vice
Chairman Leon Keyserling also
supported price-wage controls.
But Chairman Edwin q. Nourse,
who is known to have opposed
drastic new control powers when
President Truman's anti-inflation
program was being drawn in De-
cember. did not appear on Capitol
Hill for testimony.
White House officials said pri-
vately yesterday that DR.. Nourse
has not changed his views. He so
indicated Friday when. after see
ing Mr.. Truman, he told reporters
that the continued price decline
is healthy disinf1ation," that
there are strong supporting fac
tors, and that 1t now is important
to avoid O state of business
"jitters."
Uncertainty Reflected.
The councils 2-to-1 split reflects
the Capitals general uncertainty
over the price outlook, as well as
o widepread view that this spring
will see a strengthening both of
business activity and employment.
DR.. Nourse' decision not to testi-
fy on controls, however, was said
to stem from his belief-one not
shared by MIR. Keyserling or Mr..
Clark-that the council should re-
main in the background as pro-
fessional adviser on economies to
the President, leaving Mr.. Trud
man free to adapt its findings as
he sees f1t.
This example was offered: Sup
pose the majority Of the council
opposed price controls-in other
words, II its position were re-
versed. Yet Mr.. Truman might
still feel the standby controls
were needed in order to dissuade
labor from any fourth round of
wage increases as likely to be in
hationary.
Might Endanger Program.
In such O case, public state
ments by the Presidents own
council would endanger his pro-
gram. And the council, If it tried
to adjust its findings to the pres
idential views, could lose its
standing AZ an impartial watch
dog Of the public welfare.
DR.. Nourse. it was learned,
wrote letters explaining his stand
to members Of the Joint Econom-
ic Committee headed by Senator
OMahoney, Democrat, Of Wyo-
ming, but did not try to prevent
the appearances Of Mr.. Keyserling
and Mr.. Clark. DR.. Nourse now
is keeping speaking dates on the
Pacific Coast.
The whole issue Of the councils
role may be aired publicly soon.
The Hoover Commission on Gov
eminent reform last week pro-
posed that it become, instead Of
"multi-headed" body, an office
of the economic adviser" with q
single director.
Present Set-up Criticized.
The present set-up is an invi-
tation to public disagreement
among its members" and carries
the risk of "transplanting within
the Presidents Office the disagree
ments on policy issues that grow
up in the executive departments
or in the Congress" the commis-
sion said.
Some officials disagree. While
acknowledging q division already
exists In the council, they argue
that a single chief adviser would
quickly become identified with the
President who appointed him and
with the party in power.
They contend that this would
conflict with the aims Of the En-
ployment Act of 1916, which Gre
ated the council. It was formed
to guide the President on methods
Of maintaining high-level en-
ployment, production and pur-
chasing power. without booms or
busts. To maintain long-range
policies Of stability. they claim,
the council should attain an Gin
stitutional" status. surviving pres
1dents or even changes Of admin
dstration.