Madison County Democrat. (London, Ohio) 19??-1958, 1950-09-15
normal circumstances.

normal circumstances.
If financial assistance Is not
available on reasonable terms, the
President may authorize direct
government loans to private en-
terprise to aid in carrying out de-
fense contracts, expand facilities,
engage in research programs, and
related defense purposes. A limit
of $500 million outstanding at any
one time is placed in such direct
loans.
Price and wage stabilization
controls are authorized under
Title w of the Bill. The Presi-
dent is first required to encourage
voluntary action to limit price
rises If voluntary action fails, the
President may establish a ceiling
price on a particular service or
material, but at the same time he
must stabilize wages and salaries
in the same industry or service.
Because of the complexity of mod
ern large scale industry, and the
practice of single company turn
ing out multitude of products
with specialized work forces, this
provision may prove very difficult
to apply.
The next step provides that if
ceiling prices have been imposed
on materials comprising SUBJ
stantial part of all retail sales,
the President shall impose CELL
mgs on prices generally and sta
bilize wages and salaries general
ly. A base period of May "a to
June %, 1850 would be used
for determining the reasonable
ness of any price increase. Wages
cannot be stabilized at level
lower than that prevailing in the
base period. The Bill specifically
exempts number of services and
commodities from price control.
A new independent agency is to
be set up to administer any gen.
eral wage and price control pro-
gram. 1t will also have the author
ity to ration consumer goods and
to enforce the price control orders.
The emphasis in this section is
placed upon equitable stabilization
of prices. The term freeze" is
not used at all.
A very short section title W
deals with the settlement of labor
disputes. 1t is declared to be the
national policy to place primary
reliance upon negotiation and col
lective bargaining and the Presi-
dent may initiate voluntary con-
ferences between labor and man.
agement to effect settlements in
the national interest.
Title VI authorizes the Board
of Governors of the Federal Re-
serve System to exercise controls
over consumer credit in accord
arce with the August 194l Ex-
ecutive Order which resulted in
the original Regulation w which
was in force during World War
II and part of the postwar period.
The details of the new regula-
ton will be forthcoming as soon
as the President signs this Bill
and presumably will specify down
payments and maturities for the
purchase of consumer goods and
regulate other classes of consumer
credit.
Title vi will also authorize the
President to establish controls
over new real estate construction
credit. New construction means
any structure or major improve
ment or addition which has not
been begun before August 8, 1850.
The regulations may prescribe
such things as maximum loan or
credit values, minimum cash down
payments, maximum maturities.
renewals and SO forth, in order
to prevent or to reduce excessive
use of such credit which may
cause inflationary pressures or
divert materials from the de-
fense effort. The President is
also given authority to reduce or
restrict the terms of real estate
loans that are insured or guar
anteed by any government agency
or corporation and to suspend or.
reduce any authorized loan pro-
gram. The relative performance of
veterans under existing law, how
ever, is to be preserved.
No judgement as to the effect
iveness of this legislation to curb
initiation can be made at this time.
Regulations must still be issued
which will prescribe the degree of
control over consumer and real es-
tate credit. Further, Congress has
still TO enact legislation with re-
gard to new taxes. The recently
enacted appropriation bill effect