Evening star., 1952-02-13
To Fight Initiation

In his message asking for two-year re-
newal and strengthening,of the Defense Produc-
tion Act, President Truman has requested some
things that he probably expects not to get in
Guiding the repeal of such controversial provi-
Sions as the so-called Capehart Amendment On
the whole, however, his main thesis is so sound
that Congress, even If it gives him considerably
less than he wants. will almost certainly extend
the substance OF the present legislation for at
least another IL months beyond its expiration
date next June 80.
1t is obvious, in any case, that the Nation
cannot safely rid itself at this time of the con-
trolls now operating in it's partially modified
economy The controls-covering prices, rents
credits, wages and other important fields like the
apportioning of key materials to meet both
civilian and military requirements-ar essential
weapons in the fight against imitation. If they
had not existed during the past year, the pur-
chasing value of today's dollar probably would be
appreciably less than Wha. it is. BY the same
token If they were eliminated at the present.
stage, the consequences could be grevous for all
of us in the months ahead, both in terms of our
individual pocketbooks and our capacity to build
up our armed defenses.
This is SO, as the President has said for three
major reasons among others. First serious in
fationary pressures already exist. Second, we
must expect those pressures to mount as our ever
accelerating rearmament program makes itself
felt through cutbacks in the output of such
civilian items as household appliances and auto
mobiles. Finally, third, as result of our stepped
up preparedness effort, the prospect is that the
Nations very high personal and business incomes
are going to grow higher, which in turn means
that our current huge reserves of purchasing
power are scheduled for further enlargement On
the latter point, Mr.. Truman certainly has not
exaggerated in declaring that this purchasing
power, If it should turn into sudden flood of
demand competing for limited supply of con-
sumer goods, would expose our present uneasy
price structure to tremendous new upward
boost that could be disastrous In the absence of
controls.
Actually according to the President, potential
infationary pressures greater today than they
were when business establishments and the con-
suming public, in a kind of panic rush, went on
buying spree right after the outbreak of the
Korean war and again, few months later, after
the Intervention of the Chinese Communists In
that period there were no shortages of any kind
and our rearmament had not even begun to af-
feet oar booming economy. Yet, because of scare
based demand and the accompanying sudden
outpoGring or purchasing power wholesale and
retail prices skyrocketed. Plainly enough If the
same thing should happen once more at time
when our military program is placing limitations
on civilian supply the results could be extremely
dangerous.
In these circumstances-p particularly because
it is by no means inconceivabe that the next year
or two may bring on events profoundly more un-
settling than what has happened thus far in Ko-
rea-simple sanity demands that the Nation
maintain adequate controls against imitation.
Such controls will be necessary until our pre-
paredness effort moves forward to point where
it ceases to impose extraordinary strains on our
economy The requirement is self-evident, and
Congress must act accordingly