Evening star., 1952-01-27
KeyserIing's 5 Advice
Called Biused'
Writer Sees His Opinions
Motivoted BY Politics
By Frank R. Kent

By Frank R. Kent
Most persons viii agree that II there
is any administration agency which
should be free from politics and parti.
sanship. it is the so-called Presidents
Council Of Economic Advisers. This
group, headed by Leon KeySerling, Is
as to the economic situation and make.
recommendations upon which he can
rely as sound.
In other words, its function Is to give
him facts. ANALYSIS and Interpretation
upon which to base his economic pole
cies. Clearly, il these are biased the
advice of the council becomes WORTH
less. It Is unpleasant to state but it
is certainly the truth that a good many
informed persons. including some really
eminent economists and industrialists,
think it is exactly that. They have in-
creasingly felt that way since the dis
tinguished DR.. Edwin G.. Nourse retired
as its head because he could not follow
administration lines. At that time there
was opposition to the appointment Of
Mr.. Keyserling as his successor. The new
chairman had been identified with the
New Deal and Fair Deal policies from
the time OF their inception in 1888.
He was legislative clerk to the late
Senator Robert Wagner. author of the
Wagner Labor Act and hero of the
labor unioh bosses. Later he held q
succession Of New Deal jobs. mostly
with the Housing Authority, final.
" becoming vice chairman Of the Eco
nomic Council. and with DR.. Nourse'S
departure, chairman. The impression
prevails in various quarters that what
Mr.. KeySerling really does is fit the
economic facts into the New Deal and
Fair Deal theories rather than inter-
pret them realistically and without
prejudice. Perhaps this is natural and
not intentional. For nearly twenty years
he has been completely stepped in the
New Deal-Fair Deal economic policies,
in the SoundneSs Of which undoubtedly
he sincerely believes. Most Of the best
qualified economists in the country re.
gard these policies as inherently un-
sound. It is therefore inevitable that
many Of them should regard Mr.. Key
wiser for the President.
vigorous. voluable man, q great
writer Of letters and maker Of speeches.
Mr.. Keyserling appears never to cher
ish the slightest doubt Of the correct-
ness Of his own opinions and always
expresses them forcefully. Since the
present crisis arose, several things have
contributed to the belief that his eco
nomic views are inSeparable from the
spending policies with which for SO
many years he has been saturated. For
one thing. he is on record as suggesting
that non-defense expenditures can in
crease with defense expenditures.
Every now and then he says something
about economy, but If non-defenses ex-
penditures are not to be curtailed, it Is
hard to understand the Keyserling idea.
On this question he does not see eye
to eye with Senator Byrd or Mr.. Hoover
and certainly not with the National
Association Of Manufacturers or any
other agency which has called for, nom
defense reductions from $4,000 900 900
to $1,000 100000.
y For another thing he is not entirely
In accord with Mr.. Baruch as to infla.
ton controls, which include q really
effective ceiling on wages as well as on
profits. Actually, Mr.. Keyserling has
lowed by price increases which have
promoted imitation. week or so ago
on a television program he expressed
his view that the steelworkers should
have an increase and the steel COM
panies, perhaps, a small increase in
prices. Asked If this would not promote
imitation. he was vague and evasive.
This expression of views from a Gov
ernment official was sharply criticized
as being highly improper while nego-
tiationS were going on and the Gov
ernment trying to force an agreement.
Also it has been reported in print that
War Mobilizer Wilson regards Mr..
Keyserling's economic advice as def
nitely unhelpful. The Keyserling theme
song is that production takes care Of
practically everything. If that rises,
then the national income rises, and all
is well.
But even more offensive to the
hard-headed men in the defense effort
than It's slightly weird economic
Gil never can be free from administra-
ton politics and, therefore, never can
give the President disinterested and
sound advice. This suspicion was
strengthened by the recent appointment
of Bertram M. Gross, executive secre-
tary of the Council Of Economic Ad-
visers. to the staff Of the Democratic
National Committee. The announce
ment was made by Chairman Mckinney.
approved by President Truman and
repeatedly recommended by Mr.. Key
serling.