Evening star., 1951-07-13
Thurman Arnold Sees
|Hysteria Passing With
Coming Prosperity
BY the Associated Press

1f1A1tLO1 Ed 14iLGi, td., Oull
|l3.-Thurman w. Arnold, former
Government attorney, led pane
discussion on preserving oul
freedom and way of life" at til;
University of Virginia's Institute
If Public Affairs here this morn.
ing. :
Mr.. Arnold. who headed thu
antitrust division of the Justice
Department.. set the pace for to.
days panel in a talk last nigh
IN which he attacked "nationa
|hysteria."
Where I came from in Wash.
|lngton." he said. Everybody who
has the power to investigate any
|one else is investigating =. every
|one who does not have the power
Ito investigate any one else is be.
ing investigated"
Mr.. Arnold compared the pres
|ent American temper with that
|of England during the Napoleonie
era and predicted passing oi
"hysteria" with the coming eco
|nomic prosperity.
Reds Are Jealous Nitwits."
In reply to question from the
floor, Mr.. Arnold termed the Com
|munists Jealous nitwits" and said
the Nation is more excited thar
scared by the bail skipping of -four
Communist leaders.
Others participating in the dis
|cuSsion were Virginius Dabney
editor of the Richmond Times
Dispatch: John j. Corson, Wash
ington business consultant; Jo-
ISeph D. keenan,, of the Illinois
Federation of Labor; DR.. Douglas
B. Maggs, of Duke University, and
William Stands Meacham, United
States delegate, World Penal Con-
|gress.
At a mobilization discussion
yesterday, the president of a Vir-
ginia insurance company agreed
with Chicago labor leader that
continued price and wage controls
are an absolute necessity. The
speaker was Robert E. Henley,
head of the Life Insurance Co.
of Virginia.
Now in Rat Race .
Joseph D. keenan,, Chicago
labor leader, declared:
1--WE are now in a rat race. 1t
is natural that worker demands
for higher wages should be passed
on in higher prices. The time
has come to call halt"
Elmer B. Stats, assistant d.
rector of the Federal Budget Bu-
reau, said the build-up of infla-
tionary pressures is just getting
under way and the peak of pres
SIRE still is a year off.
Critics of Federal spending do
not consider, he said, that out of
an annual budget, onl. fey items
can be cut. No reductions can be
made, he said, in military spend
ing, foreign aid, interest OIL debt
and veterans benefits.
Price Sterilization Defended.
Emerson P. Schmidt, economic
research director of the United
States Chamber of Commerce,
argued that imitation can best be
prevented by a balanced budget
and tight credit controls. He said
wage and price controls do more
harm than good.
Price stabilization was defended
by an assistant to Michael Di-
Sale. AS University of Michi-
gan economist, Gardner Ackley
said he opposed such regulations
because "bureaucrats can't replace
the free market as means for
control of the flow of goods"
In the present crisis, however.
he added, tight controls must be
tolerate
Earlier, a Department of Defense
consultant said the
Pentagon does not intend to be-
come the whipping boy to bring
labor and management in line dur
ing the national defense crisis.
The consultant, the Rev. Will
liam j. Kelley. a faculty member
Of Catholic University, said labor
disputes must be solved on the
local level.