U.S. FEAR DEPRESSION MAY RESULT FROM FRESH PRICE RISES

Grey River Argus, 17 February 1949, Page 3

U.S. FEAR DEPRESSION MAY RESULT FROM FRESH PRICE RISES

UNLESS ANTI-INFLATION MEASURES OPERATE QUICKLY

(Rec. 8.30) WASHINGTON, Feb. 15 Pressing for the quick enactment o all President Truman’s measure:: against initiation, Mr John D. Clark predicted in evidence before a Congressional Committee to-day, . that prices would start climbing again. He warned the committee that the “bubble may burst at any time.” unless inflation was brought under control without delay. He said that it would be foolhardy to believe that the recent price declines were signs of a healthy readjustment. He added: "If this inflationary boom levels off by itself, it will be a new experience. Hitherto, booms have always ended suddenly and unexpectedly in a business collapse.’’ Recalling that prices dropped sharplv earlv in 1948, and then rose again/ Mr Clark said that conditions were developing for the same thing to happen again. The anti-inflationary measure:, which President Truman requested in his State of the Union message m January included wage and price controls, ‘and a taxation increase amounting to four thousand million dollars.