Evening star., 1950-08-06

Ing ana SpeculaClOn, mas Deen LOT
prompt Federal action to halt the
spiral a-borning.
President Truman and his ad-
visers, of course, recognized that
something had to be done, but
suggested limited powers only
were necessary to cope with the
present half-war, half-peace sit
uation.
Accordingly, Mr.. Truman asked
Congress for Cd power to set
priorities and ALLEGATIONS on es-
sential materials; 90 curbs on
consumer and mortgage credit;
80 power. to compel producers to
accept war orders, and "a author
ity to grant loans to industry for
expanded production, when neces-
Sary.
Stacks of Letters
He also asked for a IS billion tax
bill as preliminary to a much
heavier one after the November
elections, and a reduction of nom
defense spending wherever feas-
ible.
Along with this program, he
called for voluntary measures to
combat the spiral. He asked that
businessmen, consumers and labor
practice moderation" refrain
from boarding or avarice and
avoid infiationary wage demands
and strikes.
But neither Congress nor the
people thought it was enough.
Bernard Baruch, who had indus
trial mobilization experience in
two World Wars, vigorously urged
an all-out program. He said
said there must be wage and price
controls and rationing before it's
too late, adding that priorities
and price lids are Siamese twins
they go together Higher
taxes also were recommended.
1t turned out that Mr.. Baruch
had had a sensitive finger on the
public pulse. Congressman began
getting stacks of mail urging
price-Wage controls. Republicans.
despite Senator Taft's opposition,
took the lead for a sitter fight
on imitation. Action began in both
Houses to get Mr.. Baruch's ideas
into legislation.
Finally. after he saw he was
losing the fight, Mr.. Truman
agreed to standby authority pro-
posals for price-wage controls. He
told congressional leaders he
would accept if the powers were
flexible and discretionary, and if
their inclusion cidn't hold up his
earlier requests.
Politics Charged
Many Congressman did not
want to go along with the Presi-
dent on that. A proposal for auto
matte institution of price-wage
curbs when the cost of living index
rose 5 per cent above the June Is
level was adopted by the House
one day, but later dropped in a
close vote. A similar plan was de-
feated in the Senate Banking
Committee.
Why did Mr.. Truman lag behind
and then make an issue of con-
trolls, even for a little while? His
stated reason for the record was
that he wanted only those powers
presently needed to hold imitation
in check.
Some of the Presidents political
opponents hint. however, that he
had one eye on the November elec-
tions, and. remembering the Re-
publican sweep of 1916 with it's
Had enough?" motto, feared
alternating voters by broad Govern
ment controls.
They point to the interim tax
program advocated by the admin
istration. No excess profits levy
is included. The administration
wants time to re-eXaminc this
complex problem" and later will
request higher levies in individual
and corporate incomes. After
November" the critics chorus.
Postponement of the excess
profits tax was asked in face of an
Associated Press survey a couple
of days ago which reported earn
ings of $50 corporations in vir-
tually every field of business
showed that profits were 43 per
cent higher in the second quarter
of 1850 than in the same period
last year. The rate is running we'll
ahead of the all-time record OF
1948. And the increase was re-
corded before the Korean war
started.
Many observers, in trying to
determine the reasons for the de-
mands for controls by consumers,
businessmen and labor organiza-
tions, are convinced it goes beyond
economic considerations, strong
as they may be.
Pocketbook Pains
Apparently the seriousness of
the Korean fighting has been
grasped and the possible grim
eventualities carefully weighed.
Daily news stories from the far
away battlefields have kept the
public conscious of the sacrifices
being made by the heavily out
numbered American troops as they
buy time with their bodies.
The people, except for miserable
and foolish hoarders and greedy
profiteers, are eager to identify
themselves with the common ef-
fort and are prepared to make
sacrifices of their own.
But a look at the price situation
since June 25, date of the Com
invasion of Southern Ko-
rea, shows clearly the most pow
erful reason for the popular de-
mand for controls. Surging prices
hurt where it often hurts the most
in the pocketbook.
The Bureau of Labor Statistics