Evening star., 1951-09-01
Better Safe Than Sorry

Speaking In somber tones to the Senate
Banking Committee, Economic Stabizer Eric
Johnston has warned that unless Congress re-
peals three key amendments to its recently en-
acted anti-infation legislation, "the conse-
quences will be costly" and could be disastrous"
Defense Mobilizer Charles E. Wilson and Price
Director Michael Disable have said the same
thing. So has President Truman. AS far as
the administration is concerned there are no
IFS" or "buts" about the matter: without the
action requested, the purchasing value of the
dollar will be hit so hard that our whole pre-
paredneSS program will be seriously affected and
millions of Americans with limited fixed incomes
will be penalzed in way that could be tragic.
Yet, despite the solemn, non partisan nature
OF this warning-and certainly men like Mr..
Johnston cannot be accused of cheap politick-
ing--it appears possible if not probable, that
Congress will do absolutely nothing about the
situation between now and adjournment. A lot
of acknowledgements included-seem to have
the same viewpoint as Republican Senator
Capehart Mr.. Capehart has pretty well summed
up the oppostions attitude, by "a citing a
rather impressive record to show that the ad-
ministration although it had ample power to
do So failed to act against imitation many months
ago and is therefore responsible for the present
state OF affairs; GU arguing that businessmen
are finding it increasingly difficult to sell ac-
cumulated supplies of consumer goods and that
our mounting production indicates that prices
may go down, not up: and (3l belittling all dire
predictions to the contrary and describing the
repeater appeals ''just politics" aimed at pin
ming the blame for higher living costs on the
G.. o. p. ~o* a+
But the opposition view pays scant atten-
tion to what is now one of the most significant
facts about our economy. The fact is this: That
year hence our military spending will be at
an annual rate of $50 billion $40 billion higher
than the current rate What this means as the
President has said-and as MeSsrs. Johnston
Wilson and Disable have vigorously emphasized
is that present inventories of consumer goods
will dwndle, and defense demands will keep
them from being fully replenished. Incomes will
be increased by defense work. There will be more
money and less goods Unless our controls are
strong prices will rise sharply" Accordingly,
apart from additional changes that may be re-
quested later, the administration has urgently
asked Congress for the immediate repeal of the
amendments that permit sellers to pass on to
buyers all cost increases since the outbreak of
the Korean war, guarantee to wholesalers and
retailers the same percentage of profit as in
the pre-Korean period, and ban livestock slaugh-
tering quotas.
1t may be, as the opposition contends, that
the repeal of these items will have no appre-
clable effect on the situation and that the dire
predictions are much too dire. Nevertheless
even If there is room for reasonable doubt as
to which way the economic winds are blowing
toward more imitation or away from 1.-THE fact
remains that the cost of living has reached
new high, that rising prices have already eaten
deeply into our defense budget and that the
general outlook offers ample ground for the fear
that the average American pocketbook will take
a further beating unless every effort is made
to check the pressures on it-a beating that could
spell real tragedy for great numbers of people,
In the circumstances, especially in view of
the obvious earneStness of the warnings that
have been sounded. Congress will be frivolous
to the point of recklessness if it fails to act
favorably on the administrations request This
is matter that should be dealt with as a pre-
adjournment legislative must" Possibly future
events will prove such action to have been un-
necessary, but it can do no harm in any case
On the contrary it may do lot of good, and
it ought therefore to be taken on the sound
principle that it is much better to be safe than
sorry. The Nation needs as much protection as
it can get in this field