Evening star., 1950-07-13
Controls
Continued From First Page)

NOIlGlIlQtQ C1Oul + IL 81 EdBco
either for sudden increases in
food prices.
Officially, the White House is
saying little about the situation,
although the National Security
Resources Board for some time
has been readying plans for con-
troll legislation. Developments In
the Korean conflict, needless to
say, have brought accelerated ac-
tivity to the NSRB planners.
Cabinet Discussion Scheduled.
The President is reported plan
ming to discuss with his cabinet
tomorrow whether any restrictions
on business and civilians are
necessary to meet the present
emergency. Presumably the ques-
ton will be taken up of whether
to ask Congress Sfor broad
controls over home front activities
to be used only in case of grave
emergency. Such a plan would
envision eventual conversion of
plants now making civilian goods,
such as automobiles, to military
production.
Some of Mr.. Truman's advisers
fear that even a request for broad
standby controls would accelerate
the rate of scare buying and
boarding.
Just what to do about controls
is tied directly to the big problem
OF how far to push general mobili-
cation of the Nations resources
at this time. That depends on
the Defense Departments esti-
mates of needs for the Korean
war, which have not crystalized,
and the imponderable question of
Russia's intentions in the matter
LOT further aggression.
Special Authorization Needed.
1t was said that advice con-
tanned in the midyear report of
his Council of Economic Advisers
will play part in Mr.. Truman's
decision as to what to do to off,
set the impact of defense needs
on industry and the public.
Officials pointed out that there
is very little the Government
could do toward controlling the
distribution or prices of important
materials and commodities with
out special authorization from
Congress.
There are now on the statute
books the following controls:
l. The Defense Department has
the power under the Selective
Service Act to seize and operate
plants. mines and other facilities
which are necessary for the fill
ing OF military orders. Some Gov
ernment lawyers believe the Ian
guage of the act is broad enough
to permit the President to meet
any sudden military emergency
1t could be applied to ALLEGATION
OF such war materials as steel,
for example.
z. The Commerce Department
has the power to control exports
either for reasons of security or
scarcity.
3. The Agriculture Department
has the power to control importa-
ton of rice.
New Credit Curbs Urged.
The Federal Reserve Boards S
curb on consumer credit-install-
ment buying-died a year ago.
There is pressure for reinstitution
OF credit controls, but board Off
cials believe it would be inneffec-
tive unless tied in with a broad
program of price controls.
In any event, credit restrictions
could not be imposed now without
new legislation or the declaration
Iby the President of national
emergency. There is some thought
that Mr.. Truman could invoke the
curbs in event of emergency.
OF all the materials makers,
steelmen are the most worried at
the moment. They are already
producing at capacity to meet
civilian demands, and must find
room for the expected new mill
tary orders. Authority to allocate
iron and steel may be the first new
emergency power requested of
Congress by President Truman.
Despite some shortage of other
industrial materials, most pro-
ducers believe they can take care
of both civilian and military needs
If the people will refrain from
scare buying and boarding.
There is talk within the steel
industry that the Government
soon will set up an iron and steel
industry advisory committee to
work out new plan of voluntary
ALLEGATIONS for the industry.
But Federal officials say that,
because of antitrust laws which
forbid such agreements among
competing manufacturers, special
legislation would be necessary be-
fore even a voluntary distribution
plan could be used.