Indianapolis Times, Indianapolis, Marion County, 28 July 1950 — Page 18

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Stop Inflation Now F® IM two eminent sources, Congress and the country got two varieties of advice about what economic actions are made necessary by the world crisis that flared violently in Korea. One variety came from President Truman and his Council of Economic Advisers. Its ‘substance was that the actions already taken or proposed by Mr. Truman are sound and adequate to the present situation, The other variety, filling 15 typewritten pages, was + read by Bernard M. Baruch to the Senate Banking and Currency Committee. Its theme was that Mr. Truman's actions, taken or proposed, though good as far as they go, are gravely deficient in that they don't go far enough to mobilize the country and to stop inflation.

» x ¥ ~ y MR. BARUCH warned against trusting ‘the futile, fllusory hope” that the Korean crisis will pass off without upsetting us too much. That crisis, he said, is bigger than Korea. The “final area gf decision” is mot there. Another world war may yet averted—but only through far greater effort than thul far has been proposed. or we are lagging in a race against an enemy who has mobilized and armed for war while America and other free nations disarmed. Even if the Korean affair did blow over, we still would have to mobilize and arm, or invite aggression elsewhere. But mobilizing and arming on the scale now imperative will require vast government spending, increasing already serious inflationary pressures. Therefore, Mr. Baruch told Congress, it is governments urgent duty to place a ceiling over the entire economy—a ceiling on prices, wages, rents, food and all other costs — to eliminate profiteering and to ration scarce

materials.

. - ” ” » » LIKE many other Americans, Mr. Baruch fears con‘centration of power in the government and too great dedence of the people on the government. But, he said: “The gravest threats to preservation of the American system today are not government controls. They are military defeat abroad and further inflation at home. What could make people more dependent on government than inflation?” He further advocated taxes high enough to eliminate profiteering and cover all defense costs, postponement of all nonessential government spending, and fast steps to organize America for all-out mobilization.

8 ” » . TEN years ugo, in another growing world crisis, Mr, Baruch began giving President Roosevelt and Congress and the American people that self-same advice. x Looking backward now, it's plain to see that the limited amount of his advice then followed promptly has proved wise. : But to a great extent his advice was disregarded, or

followed by degrees too little and too late. This time, let's heed the lessons of experience.

Sheriff Cunningham Acts LAST MONDAY night two deputy sheriffs were charged with shaking down a couple in a parked car. Next day corroboration of the charge reached Sheriff Cunningham. The sheriff didn't brush off the charge. He did not suppress the evidence. He did not announce that he didn’t consider it “too damned bad” for deputy sheriffs to behave like that. He didn’t even suggest that the couple shaken down weren't very nice people and shouldn't have been parked out there. He just suspended the two deputies as soon as the serous charge was made. He just fired the two deputies as soon as the evidence showed the charge was true, All within 36 hours. We have an idea that all the other deputy sheriffs in Marion County now understand rather well that the sheriff doesn't approve of their shaking down motorists and taking bribes. We suspect that they all know that the sheriff won't tolerate a force of thugs and hoodlums under his . command policing the county. Certainly is refreshing. . It's so different.

To the Bone, Eh? THE other day Rep. Stephen M. Young, Ohio Democrat, gent’ his constituents some tidings ‘straight from Washington.” » “This Korean fighting,” Mr, Young wrote in a weekly report, “will be costly in money and in lives and our expenditures for our armed forces will be much higher during the current fiscal year. “It is a fact that there must be a slash—a cutting to the bone—of all non-military federal expenditures. This: is imperative—of transcendent importance.” ; Having dispatched that clarion call for stern economy, Mr. Young took further action. He signed a petition to bring before the House for passage a bill which would cancel Postmaster Geners! Donaldson's attempt to cut his department's $500 million deficit by reducing certain postal services.

Community Progress : [E DEDICATION next Sunday of the new town hall civic center building in Rocky Ripple, rapidly growmmunity in Northwest Indianapolis, is another immilestone in neighborhood developments here. many years ago this area was only a sparsely

district. Today this community has taken its stronger links in the City's chain of

center reflects the progressive Which

: h K oy government

said it

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available to them resources far in excess of their internal capabilities.”

That's a clumsy way of saying that

the Korean Communists are being supported by Russia and Red China, which no one has doubted since the first day of the invasion. Those Red stars on the tanks that are killing American soldiers tell their story. ; Russia an this war by sending puppet troops to invade and capture South Korea, a move obviously well planned long in advance. When the United-Nations called on its members to join in halting this aggression, and Rus-

DEAR BOSS . . . By Dan Kidney GOP Mapping Hoosier Candidates Agree New Vote Tactics Needed WASHINGTON, July 28-Dear Boss—Hoosier Republican in Congress held a campaign council here this week and agreed that new tactics are necessary for them to win the election in November. They decided to accept the Korean crisis, an issue which Indiana Demoerats intend to concentrate on and attribute the lack of preparedness in meeting it to the Truman administration. Paul Cyr, Gary, first district Republican congressional candidate attended the meet-

ing, a luncheon arranged by Rep. Charles A. Halleck, Rens-

Sen. William E. Jenner, To GOP organization boss, atSen, Jenner tended but Sen. Homer E. Pattern Set (apehart, who is up for reelection for a second term, was absent. He explained he was pinned down by the Senate Banking and Currency Committee hearings on the administration economic control bijl The other Congressmen, Reps. Ralph Harvey, New Castle, Cecil Hardin, Covington, and Earl Wilson, Bedford, were there, Mr. Cyr, who was a World War IT major, had attended a previous meeting of all Repub-

A

lican congressional candidates with the dele- ~

gation here before the Republican state convention. Then the issues seemed clear cut with the Democrats likely to be on the defensive on the “Brannan Plan,” “socialized medicine,” failure to cut excise taxes and the so-called trend toward “socialism.” ; When the shooting started in Korea, these measures were among the first casualities. Hoosier Democrats couldn't care less. They knew that they were unpopular proposals, so far as the Indiana electorate is concerned. 8en. Jenner set the pattern for the campaign by urging all candidates to declare that an administration which brought us into the Korean War so unprepared should be replaced as quickly as possible and the way to start is to knock out its congressional supporters in this campaign and replace them with Republicans. He charged that there is no plan for the future, should the North Koreans be pushed

— back to the 38th Parallel and if all fighting

stopped - the Truman Fair Dealers would just come back with the Brannan Plan and all the other measures that have been put away for the duration. Lx “We will use the Nar as a starting point to cite their foreign failures and not let them forget these domestic plans,” Sen. Jenner said, Mr, Halleck said a plea of Rep. John Walsh, Anderson Democrat, not to use the voting records on either side now that the war is on ia 80 much nonsense, Mr. Walsh himself was attacked on his record, particularly of absenteeism, after he hurled a challenge in the House to Rep, Gerald R, Ford (R. Mich.). :

‘Examine the Record’ “WHY in my campaign #wo years ago they challenged me because I didn't vote to fortify Guam some years before World War II,” Mr, Halleck said. “I think we ought to examine the record. The fact is that we never learned about the Yalta deals dntil the Russians let the cat out of the bag.” After the luncheon, Mrs. Hardin boarded a plane for Terre Haute where she gave a sort of preview of how the GOP will support the war with “critical loyalty.” In her speech, released here, she said: : “History has proved our judgment in opposing Korean aid last winter was good judgment. Our own State Department tacitly so admitted in the months between Feb. 9 when Korean aid was approved by 106 voteg in the House, and June "25, when the Communists struck. For, during that four and one-half months only a small amount of economic aid went to South Korea. The baiance of the congressional aid appropriation had not been sent to Korea when the war broke out.” Asserting that he was sorry to have missed the pow-wow, Sen, Capehart said he could sum

“up -the fall campaign in two questions to the

Democrats. They are . . . “Why did President Truman go to war in Korea on his own initiative when we were not ready. : “Why weren't we ready when Congress appropriated $60 billions for defense , . .”.

SIDE GLANCES

hat “the North Korean aggressors have

selaer, dean of the delegation.

~ When spokesmen.for otf won't speak plainly, noiwonder some of our troops in Korea confess they don't

CWA

A Mighty Man Is He

nat pn

SAME OLD ISSUE . . . By Earl Richert ; How Far Should Controls Go?

WASHINGTON, July 28-—-The big argument in the capital today is: How far do we go with our economic control program? There are three different viewpoints. ONE: The middle-ground view of the Truman administration, The President and his adg visers think the economy is strong enough to stand the strain of the proposed war spending without a complete set of economic controls now. They think that the limited program proposed will do the job, if everyone practices moderation and co-operates. WO: The “all-out mobillzation now” school headed by Elder Statesman Bernard M. Baruch. Mr. Baruch, who has : been through it all before, Mr. Martin . . JSays the administration’s protoo much power: cram is an invitation to further inflation. He says complete economic controls should be slapped on now and predicts that the administration will have to ask for them later, THREE: The belief by right-wing Republicans that the President is asking for too much power—much more than he needs, House Minority Leader Joseph W, Martin and others stress the fact that the administration controls bill proposes some powers which were not granted in the last war. For example, the administration is asking for power to control margins on the commodity exchanges—a control not established in the last war. Then there is the new proposal to control size of down payments on real estate when privately financed. Rep. Jesse Wolcott (R. Mizh.) argues that the administration is not now using many of the control powers it has, He says the administration could tighten up credit considerably by letting interest rates go up and by increasing bank reserve requirements so banks would have less money to loan. A corollary to the question of how far domestic controls should go is: How much will the people accept? Mr. Baruch argues that they are far ahead of both Congress and the administration in willingness to accept complete controls for mobilization and to prevent inflation.

not on her side.

nism. The drawback is we don't have arms to give them, and probably won't for at least two years,

» ” ” PART of the trouble is the old American talent for ending every war confident that there never will be another. We walked into the rich

arms-producing areas of the American zone in Germany and ‘systematically destroyed her ~ military potential. Machines were demolished or carried away, dies smashed and even blueprints destroyed. © » = =» = A HIGH military government official estimates that it

It's a bitter truth because thousands of West Germans would gladly join any army that gave them a chance to fight commu-

Allan B. Kline, president of the American Farm Bureau, disagrees. He says the people are not convinced the present situation is serious enough to warrant complete controls. It would require a major selling job by the President and other leaders to convince them, he says.

Answers Capehart

“HOW can you sell the people 100 per cent mobilization when the President doesn’t say it is needed?” Sen. Homer E. Capehart (R. Ind.) asked Mr. Baruch at hearings before the Senate Banking Committee. “If the President maintains that position, it's going to be very difficult,” replied Mr. Baruch. Some administration officials agree with Mr. Baruch’'s recommendations, but believe Mr. Kline is right on his size-up of the public temper. . “The public would not accept price controls

and rationing now,” said one high administra-

tion economist after an extensive trip throughout the country, “But Mr. Baruch is right, of course.” In addition to right-wing Republicans, farm groups already have started shooting at the President's limited controls bill. The Farm Bureau and the National Grange are opposed to a section which would let the Agriculture Department drive commodity prices down to price support levels by selling surplus stocks, without including handling charges in the price.

Same Old Throes

THE farm leaders contend that this would be unfair and discriminatory because it would tend to place farm commodities under price ceilings when wages and prices of non-farm products were not controlled. . The commodity exchanges are fighting the request for power to control margins in commodity trading. Exchange spokesmen say mar- . gins were regulated during the last war in accordance with the wishes of the Agriculture Department and no special grant of power is néeded. And so it goes. Washington is going through the same throes of indecision as it did 10 years _ ago when the problems were much the same. “I guess we'll have to learn all over again the hard way,” said the economist who believes Mr. Baruch is right.

aircraft of model.

Even when American finishes equipping herself it won't be possible to help Germany— ironically mans themselves who are to

High Commissioner for Germany, last week told the Germans they “could hardly be de- and nied” a chance to fight for their own soil, > 88 8 UNFORTUNATELY, Dpitchforks aren't much good against Russian tanks. Neither, it has turned out in Korea, is a lot of American equipment. The first job of the United States is the modernization of our own Army and equipping it for expansion. The American Army in Europe probably is better equipped

blame.

«In addition,

the giant Russian rifles. Half the fighter strength theater still is propeller-driven World War II

Hitler's troops, when they marched into Western Europe; were equally methodical in destroying the war industries of France, Belgium and Holland. These countries depend almost entirely on American help and most of the equipment they now have is far out of date. -

» » - EVEN if we wanted to create a new German army, we... could hardly do it at the expense of Allies who helped fight her during the last war.

man has made broad commit-

plan which it is proceeding to execute. We are meeting this dynamic challenge with diplomaey as usual, politics as usual, business as usual. Our government isn't even convinced that it should veto Red China's applica“tion for ‘Tembership in the United Na. “tions Security Council, although troops which fought in the Red China Army are fighting against us in Korea. We can't win this war until we face the facts and make up our minds that we want to win it.

OOS\ER FORUM

"| do not agree with a ward that you say, but | will defend to the death your right to say it."

- . ‘Fair Decision Needed’ By J. M. Syler, 3139 Winfield Ave. MR. LEIBOWITZ and Mr. Booker’s pro and con articles on the trucking industry's destruce tion of Indiana highways were of especial ine terest to me as I travel these highways to the tune of about 40,000 miles a year and am in a good position to observe first hand some of the facts brought out in both gentiemen’s observations. And from my personal experience I am definitely inclined to agree wholeheartedly with The Times version of the question, Perhaps my perspective’ has become somewhat jaundiced from so much observation of the utter disregard of other motorists’ rights and privileges by a great many of these highway monsters, but I question very much that the trucking industry pays anywhere near its fair share of the highway maintenance. I do know this: Virtually every driver I talk to throughout the state is ready to take up the cudgel for almost anyone who will do something to see that this question is fairly decided. Almost without exception the driving public is of the opinion that we need more and wider roads and that the reason we do need them is that the trucking industry has made it necessary, While I have driven several hundred thousand ‘miles on Indiana highways, I have never had a chance to observe what it would be like to travel a good highway without excessive truck traffic, but I doubt that it would be near the task that it is with such truck traffic. 2? % %

MR. BOOKER states that if highways were built with proper drainage, water would not collect under them and pumping would not occur. The thought occurs to me that if it were not for the trucks, would such expensive highway construction be necessary? And if the trucks are to use the highways wouldn't it be logical that they should pay whatever amount above the cost of such construction as would be necessary for them to travel without destroying the roads as they now apparently do? I have often heard it asked by motorists just how much the state of Indiana collects from trucks that run between Chicago and Louisville and Chicago and Cincinnati, 95 per cent of whose mileage is on our highways but whose terminals are in other states. It would be in. teresting to know if they pay anything. I labored behind a huge monstrosity of a vehicle one evening for about 12 miles between Huntington and Marion on Road 37 and all that time had to look at a sign ‘written across the back of the thing that said: “Indiana Motorists! Last year the trucking industry paid one-third of the cost of maintaining Indiana highways.”

* % 9 BY THE time the driver of that truck could no longer hold the line of about twenty cars that had a&tumulated behind it and I had a chance to pass it and its odorous exhaust I felt that I would have a lot of satisfaction if I could write in the dust below that sign “And caused two-thirds of the destruction of those same highways.” Mr. Booker mentions that railroad propa ganda should be ignored. But as an everyday motorist I must say that their propaganda makes a lot more sense to me than anything else I have read on the question—and perhaps neither is exactly right. The only hope motorists now have is that whatever is wrong—and something definitely is—can be worked so that we can all pay our fair share to a highway system that in Indiana is apparently doing all it can to make our roads safe, Until then the statement in The Times editorial that freight hauling by trucks is likely to increase is a pretty discouraging aspect for drivers like me to consider.

What Others Say—

THE general program of the Truman crusade i= clear. Promise everyone everything, and hope to back it up with government money. , ., Such a policy will wreck the United States and reduce it to bankruptcy.—Sen. Robert A. Taft (R. 0.),

SOVIET communism is in deadly earnest, whereas the so-called “free world” is lackadale sical. . . . This cold war is a serious business. John Foster Dulles, GOP adviser to the State Department.

THE hallmark of a dynamic economy fis a labor shortage and not a labor surplus. In an expanding economy, there should be more fobs than people to fill them.—Sen. Herbert H, Lehman (D) of New York.

By Galbraith NATION OF SOLDIERS . . . By William Cooper West Germany Potential War Foe of U. S.

STUTTGART, Germany, July 28-.Jf Germany fights within the next two years, it probably will be against the United States,

HOW many Germans would fight for Russia is problematical, but Germany is still a nation of soldiers. Chances are any country that furnishes guns could recruit a sizable handful of divisions. The problem of defending Europe is tremendously complex at best and West Ger. many, of all free countries, deserves least sympathy. But it will be an unhappy day for the GI if he slogs out to war again and finds a reborn Ger. many army in front of him,

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follow the return from vaca-

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Hundreds Molester ¢

HUNTINGI UP)—"“Hun people” gatl Highway Pat after an ex-¢ for molesting Patrol Capt. ported. Mr, Fletch disbanded aft 30, a former moved. .to, th Tenn., as a “| ure.” Fletcher sa entire 22-man the captive a erowd action.