Evening star., 1951-06-09
Economic Group
Urges New and
Heavy Tax Boost
: Key Lawmakers Tell
Trumun Thut Controls
Will Be Extended
By Froncis P. DouqIos

for more taxes was forecast today
in a report by the Presidents
Council Of Economic Advisers.
Handed to congressional leaders
at the White House late yesterday
the need for more than double the
ST. billion already tentatively
approved by the House Ways and
Means Committee was coupled
with an urgent proposal for con-
tinuance of the present Defense
Production Act beyond its June
80 expiration date.
The key legislators who at
tended the conference assured
President Truman that present
laws to control imitation would
be retained.
The economic advisers report
said the overall economic Situa-
tion today is very tight indeed" ("
1t cited what the advisers said is
compelling evidence that infia-
tionary pressure will mount"
The program to meet the
threats Of imitation, the advisers
said, requires even more tax in
creases than have thus far been
proposed to Congress, although we
appreciate the economic sound
ness of making these proposals
in series of steps instead of all
at once"
House Action Due Next Week.
The highest tax increase thus
far proposed was a SIC billion
figure recommended by Mr.. Tru-
man. Secretary of the Treasury
Snyder, however. said later that
$40 billion would be adequate.
The House is due to act on the
Ways and Means Committees ST.
billion tax program next week.
The Senators and Representa-
tives who saw the President
pledged prompt action on the ex-
tension Of the Defense Produc-
ton Act. They indicated, how
ever, that the administration
would not get all it asked for in
the revised measure.
Press Secretary Joseph Short
later quoted the President as
saying. 'If we let imitation run
away the Russians win have won
the cold war without firing a
shot"
Maybank Promises Speed.
Chairman Maybank Of the SEN
ate Banking Committee said after
the meeting that his committee
would work night and day to get
the revised control bill before the
Senate next week.
The President has asked for a
two-year extension Of the act
plus authority to expand rent and
real estate credit controls. con-
troll of commodity exchanges, a
freeze of farm commodity parity
prices for a year at the levels at
the beginning of the crop season,
to build defense plants and to
stiffen the penalties on violations
OF controls.
Senator Maybank said he told
Mr.. Truman frankly that some Of
these measures probably will not
be granted by Congress. Senator
Capehart. a member Of the Bank
ing Committee. said a suggestion
was made that the administration
push for greater farm production
to hold down food prices.
Both Urge Easier Auto Credit.
Both Senators said they sug-
gested to Mr.. Truman a liberaliza-
ton Of the Federal Reserve
Boards credit controls on used
car sales. Senator Maybank said
that while he did not propose a
specific program in this regard to
Mr.. Truman he felt that buyers
should be allowed 18 instead of
is months to pay for used cars.
He said this would help both the
dealers and those needing the
cars.
The economic advisers state
ment did not pin their hopes on
taxes alone as a method of avoid
ing runaway imitation. It dis
cussed the various controls and
said that mo one measure. and
no two or three measures can
alone do the job of controlling in
flation."
All Of the necessary measures