Evening star. [volume] (Washington, D.C.) 1854-1972, 1951-07-09
Controls
Continued From First Page.

Continued From First Page)
take away the WSB's authority to
handle labor disputes.
Backers argue tina under the
present tripartite set-1p the labor
and industry votes might COM
bine to put over an inf1ationary
pay raise that would upset prices
and start a new infiationary
spiral.
Labor interests argue for the
present division, contending that
agreement among the three-in-
terests-labor, management and
the public-is the way to CO.
Operation. ...
Over the week end, the admin
Iistration kept plugging away for
controls.
In a copyrighted interview with
the magazine. U. S. News and
World Report. Economic Stabilizer
Eric Johnston told the Nation to
look for "a much cheaper dollar"
worth perhaps 80 to 40 cents in
1889 terms, If controls are scrap
ped.
Declaring the dollar is now
worth about SO or 81 cents in 1889
value, Mr.. Johnston said my
guess is that it might be worth
between 80 and 40 cents in 1889
purchasing power, in 10 years, if
you don't do something about in
| flation."
S. Million Deficit Seen.
Mr.. Disable in a letter to Rep
resentative Kirwan, Democrat, of
Ohio. Saturday said that if roll
backs were forbidden the only way
to "unscramble" the price mixup
would be to let all producers and
sellers go up to the highest prices
caught by the general freeze order
whether or not such prices rep
resented pure speculation, out
right profiteering, semi-war hys-
terra or extraordinary inventory
accumulation"
THE result can only be the per-
Ipetuation of a general price level
higher than necessary he said.
Mr.. Johnston predicted a Gov
eminent deficit this year of from
SIS billion to ST billion.
And under the present defense
program. he estimated the cash
deficit in the budget would be up
to $40 or $25 billion" for the next
fiscal year beginning July !, 1852.
OF the deficit he predicted for
fiscal 1851, Mr.. Johnston added: |
Nov that isn't too great. Prob
ably we can live with it, provided
Congress gives us adequate con-
trols-stronger, not weaker con-
trolls"
Inflationary Effect Feared.
Declaring that defense spend
ing will step up to about 81 bill
lion "a month"; by october or
November of this year." Mr.. john
lston said:
1--WE don't think you can food
that additional money into the
economy without its having a
tremendous inflationary effect"
AS contributing factors toward
increasing inf1ationary pressure,
he licked off mounting employ
ment. climbing personal income
and growing shortages of con-
sumner goods.
To offset the imitation which he
said was sure to follow such de-
felt spending, he urged much
more rigid controls than you now
have-by that I mean particularly
more rigid indirect controls, credit
controls, higher taxes, much
greater savings on the part of the
people. :"
AS for ceilings on prices and
wages. Mr.. Johnston said: III
think that is only part of it-a
necessary but the minor part,
Aiken Opposes Controls.
On the other hand, Senator
Aiken, Republican, of Vermont
Icontended that no controls would
be needed if there was a free
economy and producers were per-
United to produce"
His views were set out in a.
recorded radio panel discussion
| (WINX's Meet Your Congress) !
He was backed by Representative
Hope, Republican, of Kansas. On
the same program Senator Leh-
man, Democrat-Liberal, of New
York, and Senator Sparkman,
democrat, Of Alabama, spoke out
for stronger curbs on prices, wages
land other factors of the economy
Declaring that SURPRISES al
ready are beginning to pile up In
many goods" Senator Aiken said
he is confident defense needs can
be met without creating shortages
in civilian production. He attacked
the administration campaign for
Istricter beef price controls as a
most outrageous, most unwar-
Iranted and most unfair propa-
Iganda campaign against the