Evening star., 1950-10-18
Controls Office Plans
Sharp Cut in Rubber
For Manufacturers

Sharper limits on rubber for
manufacturer were scheduled for
November and December by the
National Production Authority as
the Economic Sterilization Agency
today plowed into other control
problems and hoped to avoid
wage and price curbS.
NPA Administrator William H.
Harrison announced that orders
soon to be issued will limit the
total amount of natural and syn
thetic rubber that tire and other
manufacturers can use during
those months.
Officials indicated the aim will
be to limit consumption to about
10000 tons a month. NPA set
that same goal last August 25,
but September consumption nev-
ertheless reached 100000 tons.
Monthly consumption had hit
high of 116,000 tons in July,
largely because of scare" buying
of tires. The purpose of the
forthcoming order, the agency ex-
planned, is to make natural rub
ber available to the Government
Stockpile.
ESA, meanwhile, officially start
ed work today following the
swearing in of its administrator,
Alan Valentine, yesterday.
DR. Valentine, 49-year-old for
mer president of the University
of Rochester. declared the country
is in a very, very grave" crisis
and dangerously near the point
at which the stabilization of the
economy is threatened by inf1a-
ton"
Heavier Taxation Needed.
1t is too early, he said, to say
whether ceilings might be needed
on prices and wages. But he said
he hoped to keep such controls
as last resort weapon.
Il think we need to work out
measures and methods more basic
than price and wage control" he
told reporters.
Indicating that heavier taxation
and industrial expansion might be
among such methods, he added:
II think we must all pay higher
taxes than now. by a considerable
amount"
The new ESA head concurred
''in principle" with views of De-
fense Mobilizer w. Stuart SYM
ington that it may be possible to
avoid general price-wage controls
by stern tax and credit limitation
measures. Mr.. Synington out
lined his views in the current issue
of United States News and World
Report.
Charge Account Controls.
In another development on the
anti-inf1ation front officials of the
Federal Reserve Board indicated
they are studying the possibility
of extending credit controls to
charge accounts and single-pay-
ment loans.
No move of that kind is planned
for any time soon, they said. But
they told reporters the board
would be willing to take such ac-
ton if it becomes necessary to
combat imitation.
The board already has clamped
tighter restrictions on installment
buying by requiring higher down
payments on many household
appliances and cutting the time
for paying for them and for auto
mobiles.
While Washington merchants
still we're waiting to judge effects
of the new and lighter credit
curbs on installment sales, Maury
l.. Nee, Washington furniture
merchant and chairman of the
planning committee of the Retail
Industry Committee, took issue
again with the Federal Reserve
Board.
He and the National Retail
Furniture Association, of which
he is president, said the board
had not observed the intent of
Congress to consult with the in
dustry before tightening INSTALL
ment credit.
Mr.. Nee said he had been in
correctly quoted earlier this week
concerning board acceptance of
120-day experience period. Board
staff members, he said, merely
took that proposal under advise
ment.
Questions "Good Grace"
But he held to his previous COM
plant that the technique of dis
cussion" between the board and
industry representatives prior to