Milford chronicle., 1950-09-08
IT'S TIME TO STOP NEEDLESS
SPENDING

AS everyone realizes by now the conflict
In Korea is no longer police action. It is
war and according to those charged with
the responsibility of conducting it, major
effort in terms of men and material will be
required of the United States and her allies
to win. Moreover, in the background is the
lncalculable threat of Russian inspired ag-
gressiOn breaking out elsewhere.
In the meantime domestic problems
gamer momentum along with mobilization.
Inc old story OF rising prices and wages is
going through its PAGES. Living costs on
June, l5-just before war in Korea-on the
OASIS OF the U. S. Bureau of Labor Statistics
consumer-price index, stood at 1902 per
cent OF the 1858 level. By mid-July, those
costs were at about 172 on the index. Now,
aIter still more increases, they are at the
highest level In history. Imitation is no long
er a spectre. 1t is a reality. The fact that
1T was inevitable does not lessen its threat
to the American system and the freedom of
the people. The costly necessities of military
defense piled on top of an incredibly extrava-
CANT peacetime governmental structure are
hitting hard where it hurts mOst-the house
hold pocketbOok. The currency in that pock-
etboOk is losing its value. Pressure is rising
for Congress to do something. But even
among the best informed there is basic dis
agreement as to the best course to follow.
Bernard Baruch, who in his eightieth year
has become known as Americas elder states
man and who has been the respected adviser
s to presidents and congresses for more than
quarter of century, believes only by inn
mediate imposition of all out controls with
taxes "higher than a cats back" can the war
effort be effective and the future liberty of
the people secured Before a congressional
committee he demanded: can overall ceiling
across the entire economy, over all prices,
wages, rents, fees and 50 on, with high
~, n.
pay all defense costs, and an all-embraclng,
effective system of priorities."
Equally able observers have vastly diff
ferent views Henry Hazlitt leading econo-
mist and commentator writes: "The Admin
stratiOn's real duty now is not to start die
tatlng prices and wages but to halt it's own
1ntiahOnary policies. Tt must ruthlessly slash
needless nOn-military expenditures. Senator
Byrd, In an itemiZed statement, has estimat-
ed that the whole appropriation of $1O,5OO,-
100000 that the President requested could
be taken out of the present non-military bud
get. The government must stop holding
up prices of fOOdstuffs artifcially; it must
stop financing an inflationary housing boom;
it must stop subsidizing an inflationary ex-
port boom. 1t must stop its inflatiOnary gov
ernment bond-pegging policy; it must stop
its intlatiOnary lOw-interest rates. If
such steps are taken we need not fear in
!dClOl' anu we VIII get Cne dll-OuC pEOuuc-
tion that only free markets and free econ
omy can provide"
Regardless of whom you may agree with,
one thing should be kept in mind-the first
responsibility Of every American citizen is
the perpetuation of individual liberty and our
representative form of government. This
primary objective must always remain ahead
OF personal comfort and security. for the
civilians, as well as for the troops in the
front lines.