TRUMAN TO SIGN AN ANTI-INFLATION BILL

Wanganui Chronicle, 30 December 1947, Page 5

TRUMAN TO SIGN AN ANTI-INFLATION BILL

“FEEBLE” REPUBLICAN MEASURE (N.Z.P.A—Reuter—Conyright.) Washington, Dec. 28. President Truman announced today that he would sign tomorrow the Republican anti-infiation Bill passed by congress, though it was a feeble and pitifully inadequate weapon against the high cost of living. Mr. Truman said the measure would not prevent prices going higher, and warned that the American people faced the danger o£ a serious depression 4f prices kept rising. I’he Bill as approved by Congress provides for continued curbs on exports and transportation, controls on grain consumption by whisky distillers and a voluntary system of indus-try-wide allocation of scarce materials such as steel.

Mr. Truman’s original 10-point programme provided for authority to regulate consumer and business credit, authority to extend and strengthen rent control, and authority to use on a selective basis rationing and price controls for essential cost of living items and Industrial products.

Announcing his Intention to sign the Bill, Mr. Truman said: "I am signing the Bill with a sense of deep disappointment that Congress has seen lit to take such feeble steps toward control of inflation. At a time when nearly everyone in this nation is feeling the pressure of exorbitant prices, Congress has enacted a Bill that is pitifully Inadequate as a weapon, but I feel I must sign it because it contains some-measures that are needed now.”

Mr. Truman then referred to his 10" point programme presented to Congress on November 17 and pointed out that three ot these points —points o£ minor importance compared with the others.

“The meagre authority contained in the Bill will be utilised to the fullest extent by the Government, but the public must not be misled into believing that this Bill will do the job,” he said. “I would be shirking my responsibility it 1 did not protest against the obvious insufficiency ot this legislation.”

Mr. Truman emphasised that the Bill's provisions for a purely voluntary agreement for the allocation ot transportation facilities and equipment. for the allocation and inventory control of scarce commodities, and for the regulation of speculative trading on commodity exchanges did not enable the Government to protect the people's interests. If members of an industry refused to make an agreement, there was nothing the Government could do to see that a programme was developed for that industry. If members of an industry reached an agreement which was inadequate or against the public interest there was nothing the Government could do to improve it. The Government could, not prevent industrial concerns refusing to enter into agreements. The President said the Government had tried repeatedly during the past year to Induce Industrialists to make voluntary agreements, but the results had been wholly inadequate In stemming the tide ot rising prices. Inflation and the high cost ot living confronted all the American people with a grave danger. Unchecked, Inflation could bring a serious depression that could cause untold hardship. The American people looked to Congress to pass legislation adequate to perform the all-important task of combating Inflation.