INFLATION IN U.S.A.

Wanganui Chronicle, Volume 86, Issue 227, 26 September 1942, Page 5

INFLATION IN U.S.A.

PRESIDENT ROOSEVELT’S MEASURE . REJECTED BY FARM BLOC Washington, Sept. 23. The farm bloc won a major victory over the Administration when the House of Representatives amended the anti-inflation measure and included a requirement that all farm labour costs be computed in agricultural parity prices, thereby permitting higher farm prices and ceilings. The House yielded to overwhelming farm bloc pressure, in spite of a warning by the Democratic leader, Mr. McCormack, that President Roosevelt would veto the measure. The effect of the House’s amendment would be a rise in the parity base of 12 per cent, above the present level.

Fearing a similar defeat in the Senate, the leaders of the Administration made strenuous efforts to compromise with the farm bloc, but they had accumulated such powerful support that Senator Barkley asked that the discussion be deferred till to-morrow. The New York Times, in a leader, states: “The President and the nation met with a serious defeat when the House rejected an urgent request to place a ceiling on farm prices less than 110 per cent, of parity, while in the

Senate the Administration, facing a similar defeat, called a recess to seek a compromise. This irresponsible behaviour of Congress which, under pressure from the farm bloc, recklessly disregarded public interest in a period of nation crisis, is causing deep anxiety. “Congress deliberately chose to pervert a measure intended to control inflation into one promoting price advance. Under the limelight of intense national attention, Congress has let the President down and let the country down. If it persists in this course, President Roosevelt can do only one thing—veto the Bill.

HOPELESS BATTLE

ATTEMPTS TO GET BILL THROUGH CONGRESS

(Recd. 9 p.m.) Washington, Sept. 24. Fighting an apparently hopeless battle in the Senate, Senator Brown, who is in charge of the Administration’s anti-inflation measure, said he believed Congress and the President were headed for a collision. He was Fearful that at a time when unity was needed they were going to have criticisf, disunity and discord between the legislative and executive branches of th Government.

Speaking after 13 members of the Senate Agriculture Committee voted to reject the Administration’s compromise in the controversy over farm parity price provisions in the anti-in-flation Bill, Senator Brown said it was possible the dispute might have to be resolved in the third branch of the Government (meaning the Supreme Court). Senator Brown said the Bill, if finally adopted by Congress, would be vetoed. There was not the slightest doubt in his mind that after the veto the American people would demand that the President take action. Neither was there the slightest doubt that the President had authority under the Second War Powers Act.