The Chronicle-star combined with the Moss Point advertiser., 1949-01-07
Inside
Washington

Will AAaD AaaA 6&a obNdAllN lOA
ward for two and one-half
years, is going upward or slow
ing down.
However, on one point all
are agreed: The initiation does
not have as much wind in its
sails as it had.
Members of the Council of
Economic Advisers lean mostly
to the idea that initiation will
move ahead. Since President
Truman takes his cue from the
council, he will again present
his twice-rejected initiation pro-
gram to Congress, with price
controls, rationing and other
trimmings.
However, Congress, with its
strong tendency for prying into
things, will sample the views
of those who do not agree with
the council. The upshot, there
fore, is that it will be in no
hurry to adopt the presidents
anti-inflation program, and
very likely will reject the main
proposals.
All this depends, of course,
on the international situation.
If 1t continues to stumble along,
as it has been doing for months,
then look for no intimidation
Legislation of consequence.
If it gets so much worse that
defense and foreign aid spend
ing lunge upward unexpected
iy, then look for controls.
Defense and foreign aid
spending are the leaven in the
economic loaf now. If they
increase, initiation will swell
decidedly.
In this connection, it should
be recalled that President Tru-
man has placed. at least tenn
porarily, a Is billion dollar
ceiling on defense spending in
the next fiscal year beginning
July 1.
( Out of the battle of words
over the chief executives
ECONOMY" defense budget. it
IS becoming increasingly clear
,that the 81st Congress will dis
regard the recommendation and
carry on expansion of at least
the Air Force = to 70 groups.
Under the Is billion dollar
figure, the Army. Navy and Air
Force would receive about five
billions each. Under this set
up, 1the Air Force which has
grown to 60 groups on its way
to the 7~0-group goal, would
havet TO be cut back to so
groups
However, the nation and the
Legislators have become too air
power conscious, through the
tremendous victories won by
aviation in the last war, to ac-
cept the Truman program.
1t is likely, therefore, that in
fluential congressional leaders
will desert President Truman
on this issue and approve the
seven billion dollars necessary
to Air Force expansion
COAL -nAn odd feature of
the economic picture seems to
be that, withS steel mills and
heavy i~ndustryiin general going
full blast, bituminous coal is
piling up in the bins.
Late reports from the bureau
of mines show 81 million tons
of soft coal above ground. A
number of small mines have
shut down, and large concerns
are concentrating, on selling
their output.
A few price cuts have been
reported, but with stocks on
hand. buyers just do not seem
to be interested in getting more.
One main reason for the ex-
cess is the recovery of coal
production in Europe. Ameri-
can exports in September, for
instance, were only l,10l, 257
tons, against 4.383,s87 tons in
September of 1947. THE month
is typical of the trend through
out this year.
Revision But Nc. Repeal
LABOR = The prediction to-
day on Capitol Hill els that the
new Democratic controlled Con-
gress will not repeal the Taft
Hartley act.
The concensus is that in view
of President Truman's victory
at the polls, Congress probably
will make a major revision in
the law, but not favor outright
repeal.
The president campaigned for
outright repeal of the law en-
acted by the Republican-con-
trolled 80th Congress. The
Democratic platform also car
ried a similar pledges
Labor organizations which
played a big part in the Demo-
cratic victory are expected to
hold the administration to its
promise. Expectations are
among House and Senate men,
bers. however that a COM
nrnnicn uill be ,,rneknd ont