Milford chronicle., 1951-05-04

SufleS. InlS IS more than an injustice to the
railroads. 1t is an injustice to the taxpayers,
and to the nation which looks to the railroads
for ever-expanding service.
5000
THE BANKS ARE READY
The recent investigation of the Recon-
structiOn Finance Corporation has caused al
good many people to wonder why the gov
ernment should be in the banking and lend
ing business at all, And it's high time we
started thinking about that. Private banking
and the credit furnished by it are a vital and
constructive part Of our economy. The banks
Of this country have big, necessary, and
a vital job to do in financing the prepared
ness program and in supporting a sound do
nestle economy. The banks are ready, able,
and willing to do the Job. They were never
in better position to do it. Furthermore, as
everyone should realize by this time, govern
ment lending-which in spite of all the eff
forts at Whitewash, is largely dominated by
political cOnsideratiOns-is often extremely
infatiOnary. By contrast, the Federal Re-
serve Board, with the support and coopera-
tiOn of the private banks, the life insurance
companies, and other enterprise, has launch
ed what is called Voluntary Credit Re-
straint Program. The purpose is to encOur-
age all lenders to screen their loans and,
during the emergency, to refrain from MAX
ing loans for unprOductiVe purposes which
would contribute to initiation by unnecessary
and unwisely increasing purchasing power
Here is one anti-inflatiOn program that
makes real sense, that will produce results,
and will be backed by action and not lust
pretty words good motto for these times
would be: Get the government out of the
banking business, and all other business as
WELL
NS0NSS
A HANDKERCHIEF FOR A COLD
A recent report by the Federal Reserve
Bank of New York observes that direct con-
troll over prices, and even consumer ration
ing if that were attempted, must fall short
of providing a real solution of the imitation
problem" So long as the nations dispOsable
income holds to high levels, it continues, the
pressure of excess demand will eventually
break out somewhere. We saw this during
and after the last war, when OPA was in Op-
GRAFTON. RatiOning and price controls were
supposed to give everyone their fair share
OF the supply of goods at the same price.
Actually, many Once-cOmmon items could
rarely be found in legitimate retail stores for
the reason that they had been diverted into
the black market and other illegal channels
where the last possible nickel of profit was
squeezed out Of the customer. Practically
every segment of the economy has been blam-
ed for inflation-manufactUr retailing,
agriculture, labor. AS usual, most Of us al
ways blame the other fellow. And this helter-
skelter casting of criticism still is Obscuring
the fact that we are just dealing with the
symptoms of initiation and not the causes
1t is much as if a doctor were to prescribe
a handkerchief as a cure for a cold in the
head. The disease lies in government poll
cles OF spend and spend and spend, regard
less OF any real need-and in increasing the
national purchasing power faster than the
available supply of consumer goods can be
increased. So long as that situation exists
imitation will have the upper hand.
@NGOGSG
WHY FOOD PRICES GET RAPED
We're certain that the cost of food gets
frequent raps from everybody simply be-
cause food is purchased each day. Most
people buy car or a refrigerator a lot less
frequently. Folks who are not daily inter.
ested in the price of durable goods dOn't
take much interest in the cost of those goods
except when they want to buy some of them
Another angle is that food generally is sold
for cash, while durable goods sell on time
That makes quite difference in the think
ing Of lot of people. Compare the prices
OF June 20, 1850, just prior to the Korean
war, with those in effect on January 26 O1
this year, when the high cost of living is
being talked about by practically everyone
On the average, the retail price of meat
jumped three cents a pound in those sever
months, and the price of livestock jumped
3.33 cents pound. Has your clothing bill
or the cost of motor cars and other dUrabI,
goods, risen by comparable amounts in those
seventh months? We know it did The far
mer gets more for his meat than he used t.
but his cost of doing business has gone ur
sharply at the same time. The packer sells
his meat for more-but he still makes only
about one cent pound on all the meat sold
The retailer is in the same kind of a boat
The moral is that meat and all other price.
are simply reflection of the times we liv,