Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-09-15

SUI QAASAJ 0seGNhN0 viz @-'Ae~--->Ns :
adopt strong policy designed +
AT the same time. DR.. Galbi
Federal tax reductions gener-
ally while the cost Of living |
continues high and going |
higher-except for, tax reduc-
tions which might help reduce |
living costs-for example. re-
auctions in the field Of excise
taxes.
His views were given to the
press at the conclusion Of q
meeting Of his advisory COM
mittee in the Offices Of the
Democratic Advisory Council in
che LaSalle Building. DR.. CAL
braith emphasized that he was
speaking as an individual and
not attempting to speak for
the whole committee.
DR.. Galbraith agreed with |
the statement of Democratic |
National Chairman Paul M.
Butler that the high cost Of
living was certainly a major
issue today. Mr.. Butler insisted |
that 1t would be q dominating |
issue in the political campaign |
of 1858.
Sees Grave Errors
The Advisory Committee on |
Economic Policy was set up by |
Chairman Butler to help form
ulate ideas which could be in
corporated in recommendations |
by the Democratic Advisory |
Council-both to the Demo-
cratic 85th Congress when 1t
meets again in January and |
for the party platform for the
coming campaign.
DR.. Galbraith said the Eisen-
hover administration had |
erred gravely in its fight |
against imitation and the high |
cost Of living when it limited |
its policy only to high interest |
rates.
He insisted that you cannot |
rely one a one-item policy" to |
combat infiation-as he said |
the Eisenhower administration |
has done. He said it had be- |
come a stuck whistle"
The administration, he
added. had followed "a policy
Of raising interest rates and
hoping everything would work
out all right" He said that the
Governments policy should
have a broader base.
COunterbIast Issued
While DR., Galbraith was crit
icising the administrations
policies. Acting Secretary Of
Commerce Walter williams is
sued a blast at the Democratic
consultantS. He said:
Many of the participants
had a hand in doctoring the
economy in the 1930's and
1940's. Their record is warrant
for scrutiny of their diagnosis
and prescriptions today. For
example, in 1899. after seven
years of New Deal policies, un-
employment stood at the stag
gering total Of 100000 until
war came and created the Jobs
that the New Deal tried and
failed to create.
THE New Deal conferees ex-
pressed concern. as has the
President, over the advance in |
prices amounting to 6 per cent |
in the Az Eisenhower years. |
But, in all candor, how can
they expect the country to turn |
to them for advice in he face |
Of the fact prices rose so per |
cent in the Truman Admins |
tration?"
Mr.. williams said the Demo-
Gratis apparently had no pro-
gram to offer, unless 1t is to 60
back to price controls and wage
controls and to their old loose
money and credit policies"
DR.. Gilbraith told the press
price controls had not been
discussed at the conference.
He said the Administrators
tight money policy had been
ineffective, particularly on large
industrial investment. and that
it had hit only the smaller and
weaker borrowers.
DR.. Galbraith took q dim
view, too, Of President Eisen-
hower's recent request that the
American people should buy
selectively" in an effort to keep
down prices and the cost Of
living.
British Move Cited
THE President said he didn't
want q buyers strike" he COM
mented, but can't distinguish
a difference. have little faith
in pious injunctions to house.
wives"
Among the suggestions made
by DR.. Galbraith for a broader
government policy wa sa limit
to be place don loans to large
corporations - and so make
more money available to the
smaller and weaker ones. The
British, he said. have imposd
such a limit.
He said. too. in answer to
questions that the President, in
an effort to keep down rising
prices of big industrial corpora
tons, might bring individuals