Evening star., 1950-11-24
Abundant Production
Will Control Prices,
Anderson Declares
BY the Assoeiosed Press


Senator Anderson. Democrat, OF
New Mexico. declared today that
abundant production rather
than price controls-is the best
way to keep prices in line.
The New Mexico lawmaker said
It would be a mistake to impose
controls now. and he added:
Abundant production is the
best policeman we have to keep
prices right. Rigid controls cur
tail production. They often result
IN shortages which are the basic
cause of price increases"
Senator Anderson had plenty Of
experience with price controls, on
meat and other food during World
War II and the immediate postwar
period. when he was Secretary of
Agriculture.
Credit Curb Helps.
II don't say we may not have
to resort to price controls again."
Senator Anderson told q reporter.
But the time has not arrived.
The best way to fight high prices
now Is to encourage greater pro-
duction."
Prices have been held down
somewhat. the Federal Reserve
Board said last night, by its re-
strictions on retail credit. The
board also claimed the curbs have
had substantial results in cutting
down on installment buying.
Demand for many types OF
consumer durable goods, which in
the summer was far in excess Of
supply, has declined and can now
be satisfied in more competitive
markets." the boards November
bulletin" said.
Prices Of used automobiles,
which were very high in the
summer. have fallen to levels more
nearly in relation to list prices
Of new cars"
Autos, Furniture Affected.
The board acknowledged that
unofficial reports from trade
sources and banks have indicated
. continued rise in the total vol
ume Of installment credit since
It imposed frightened controls on
October 16. following a one-month
trial of milder curbs.
But 1t said 1t was clear that
the controls have had some brak-
ing effect. The curbs apply to
autos, furniture, television sets
and about Is other major appli-
ances.
Senator Anderson, in saying
this is not the time for controls,
echoed the views Of President
Truman but lined up against
some Of his colleagues in Con-
gress who have been demanding
that both price and wage curbs ,
be invoked Immediately.
The economic control law which
Congress enacted last September +.
gave Mr.. Truman authority to
impose those controls at any time. |.
The law stipulates, however, that
wage and price restrictions must
20 into effect simultaneously.
Can't Find Administrator. /.
Even If it wanted to, the Gov
ernment is in no position to i'm
pose overall wage-price controls
right away. Mr.. Truman so far
has been unable to find a price
administrators man with CUTS
enough to take the job. as the
President has put it.
After that post has been filled
It probably will take some time
to complete an organization.
Senator Anderson praised the
Agriculture Departments deci-
sion. announced Wednesday, to
discontinue propping up the price .
Of eggs in 1851. Senator Ander- ,
son said that action, taken be-
cause of the surplus which ac- 6
cumulated under the Government i,
purchase program. should result
IN lower prices to consumers fairly
soon.
That was a case OF prices being
held up artif1cially under the Fed
eral price support program. That
program does not cover many
other foods and other commodi-
ties.