Evening star., 1951-06-24
As Senator Moody Sees 1t:
By Blair Moody

~ Ht0N gVt0Q0y
United States Senator from MichiRan
Congress seems on the verge OF
jerking the rug from beneath the
stablization program just as it is
being moulded into balance. and
sentencing the consuming public
to another sharp upsurge in
prices.
This will be the virtually certain
result If Congress accepts the
Senate Banking and Currency
Committees version, of the new
Controls act bill. which goes into
debate tomorrow noon.
In most respects, this bill is very
like the present law which expires
June 80. 1t extends the Presidents
power to allocate materials and
control rents. 1t rejects most of
his requests for stronger measures
to enforce control orders and
make them more effective to
regulate speculation and curb
profiteering. The urgent. last
minute atmosphere in which the
bill had to be considered, after
many months during which
congressional attention had been
diverted to other channels, swept
such proposed changes aside with
scant consideration.
Calls Amendment InflatiOnary.
But the narrow margin of one
vote in committee. recorded on
two 7-6 roll calls. has written into
the measure that reaches the floor
an amendment which minority
of the committee - Senators
Sparkman, Democrat. of Ala
bama, Douglas, Democrat, of Illi-
nois, Fulbright. Democrat, of Ar
kansas, Denton. Democrat, of Con-
necticut, Ives, Republican, of New
York, and the writer-holds to be
violently inflationary.
This amendment grew out Of
the controversy over rolling back
the price of beef. Though cattle
prices have risen SO per cent since
January 1850, compared with a
10 per cent rise in industrial
wages. a Is per cent rise in the
price Of food and a 13 per cent
rise in the prices of things farm
ers buy-there is widespread
sentiment on Capitol Hill to wipe
out the last, and perhaps the last
two, Of Administrator Michael v.
DiSalle's three "rollbacks."
Would Ruin Basic Structure.
But If the committee majority's
purpose was merely to restrict
further rollbackS on meat, their
amendment would burn down the
house to roast the pig. It would
not alone kill the beef order, but
would change the entire basic
structure of the stabilization pro-
gram, freeze distortions which
have occurred since the Korean
invasion, into the economy by law;
prohibit passing on to the con-
suning public great savings as
the prices Of imported raw ma
terials drop, and blast open the
wage stabilization formula which
was established only after months
of difficult and delicate negotia-
tions.
The amendment provides that
no ceilingS-on anything-shall
be set at level less than the
lower Of (a) the current price at
the time the ceiling is set, or
ob) the lowest price in the period
January 25-February "a, 1851.
superflcially, on the grounds that
'you can't make any rollback
stick" this is a proposal to let
every one know just where he
stands and thus increase produc-
ton.
If Congress accepts the com
mittee ban on all rollbacks of
every kind. those who think that
soaking the public to the last
penny in time of emergency is
"the American system" will have
their prof1teering frozen into the
law. Those who believe, on the
other hand, that a responsibility
OF those privileged to live under
the American system is to respond
to a request by their Government
while American draftees are dying
on the battlefield to protect free
dom, will be put at a sharp dis
advantage as compared with
those who did not feel that way.
Fear New Upsurge.
Either they will be put at a dis
advantage or their prices will be
increased all along the line, which
would transfer the disadvantage
to the consuming public. Eric
Johnston, the economic stabilizer.
thinks the increases would come
and that they would boost the
cost Of living by at least 6 per
cent. That, Of course, would au-
tomatically bring a resulting rise
In the wages Of organized work
erS, and that would boost the
whole cost structure Of industry,
increase the prices Of things
farmers buy. Jack UP food prices,
and start the economy off again
astride that swirling upward spiral
which the Johnston-DiSalle Or
der checked January IS.
Actually, so far as the stabiliza-
ton program is concerned. 1t
merely makes certain that prices
can move in only one direction
up. 1t also sets in motion chain
of events making it inevitable
that they move.
Freezing Is Difficult.
One Senator, who favors the
amendment. says often that thi;
would amount to an overall
freeze" on the economy. Sena-
tor Douglas economic aide, Philip
Stern. has a colorful riposte fol
that one:
Trying to freeze all prices or
a given date" he says. "is as i'm.
possible as trying to freeze a high
jumper in mid-air. Like the high.
jumper, prices are always in mo.
ton; and like the high-jumper
they are always somewhat dis.
torted from their normal posi-.