Evening star., 1951-06-09
The Danger Is Still Here

II peace were about to break out everywhere.
or If we could be reasonably sure that there
were going to be no more Koreas or that the
Russians were getting ready to be real nice one
could give three rousing cheers for the propoSl-
ton that we don't have to worry about imitation
and that we ought therefore to forget about
things like wage and price controls and do
nothing about renewing the Defense Production
Act before it expires at the end of this month.
The bleak truth is, however, that all signs
indicate that peace is not about to break out
everywhere, that there may be more Koreas in
other parts of the world and that the men of
the Kremlin intend to keep on being their usual
nasty selves. The truth is, in short that we must
still reckon with an extremely perilous inter-
national situation that may blow up at any
moment-next week. next month, next year
into nothing less than another global war.
There is still good reason to hope of course that
the catastrophe can be averted, but anybody who
presumes to be sure of himself on that score,
anybody who thinks that the United States can
safely run its economy on business-as-usual
basis at this stage, is simply being wishful-
foolishly, recklessly, dangerously wishful
So it is hard to understand why a lot of
members of Congress and organizations like the
National Association of Manufacturers oppose
key anti-infation controls and are altogether
cordial to the idea of letting the Defense Pro-
duction Act die on June 80. Apparently they
have been impressed by such things as seeming
trend toward defiation in some segments of our
economy and the price -slashing war in New
York City and elsewhere. But it is difficult to
escape the conclusion that they have taken
mighty short-range view of present conditions
and underestimated the factors-economic
political and miitary-that can bring about
drocf nh in arr aacfi
relatively short time unless vigorous effort is
made to hold inaationary pressures in check.
Wholly apart from the danger of new mill
tary explosions or intensified political crises
stemming from the Kremlins unpredictable
policies, the fact is-as the President has declared
that our rearmament program, even if the
world gets no worse. is certain to impose new
strains on our economy In the months inmedi-
ately ahead. During the next year, for example,
our actual military expenditures will increase by
$50 billion. This will cut into the supply of con-
sumner goods and materials. # adequate controls
are not in effect, if nature is allowed to take
its course in a business s-usual atmosphere,
then the Nation will be inviting what MIR. Truman
has called "an unmanageable torrent of infia-
tion." Bernard Baruch has stated the case even
more strongly. In his opinion, unless present
price, wage credit and other controls are ex-
tended and strengthened, will suffer "a tragic,
perhaps mortal, blow to our efforts to rebuild
our defenses in time to avert another world war;"
In the teeth of warnings of this sort, in the
teeth of an international situation that is any
thing but certain or reassuring it seems hardly
conceivable that Congress will not renew and
tighten up the Defense Production Act and take
other misunderstanding much heavier taxa
tion-to guard against the kind of imitation that
could do in its own way, as much damage to
us as an all-out military attack. This is no time
for a wishful, business s-as-usual attitude. Indi-
viduals and organizations with such an attitude
are living in dangerous dream world. They
had better wake upA