Kankakee Valley Post, Volume 16, Number 23, DeMotte, Jasper County, 19 April 1946 — News BEHIND THE NEWS [ARTICLE+ILLUSTRATION]

News BEHIND THE NEWS

By PAUL MALLON

Released by Western Newspaper Union.

BARUCH CALLED TO AID IN STABLE FUTURE WASHINGTON. Whenever ths Democrats get Into great trouble, they call on Baruch, the financier. He was assigned the delicate task

of keeping the atom bomb safe for democracies without offense to others, as chairman of the new commission. Again, he was rushed up to the bouse banking committee to save ths OPA and war powers control bill, about which congress is plainly

dubious in the face of business clamor to kick off government restraints. But in this last assignment, Baruch utterly destroyed the fictions of the administration inflation policy said the price structure la out of gear, mistakes have been tragic, the Truman-Bowles bulge in the line against inflation was actually a break and a grave one and laid down his own new program to harness Inflation and get production. The program will not be adopted. While Barnch has long served as a fireman for the administration, and has been called in to pat out blazes getting beyond control, and generally issues wise advice the administration never follows the advice. At the outset of the war, this clear-thinking and unprejudiced mind openly told Mr. Roosevelt how to prevent inflation by a real wage-price control, but the President punctured his control setup so that it became a sieve with the resultant prices of today and the unending wage disputes. Again Baruch submitted a report on reconversion Just before the war end, and only one of his points was adopted reconversion being left in its current state. MANY BARUCH PLANS NEVER CARRIED OUT The official fireman, thus, has been unable to get his own fire extinguisher adopted in the past simply because the administration wanted to play political economics—wanted to get the votes of pressure groups—rather than to accomplish its announced objectives. The new Baruch plan is suffering from the same trouble. A ban on strikes for a year seems impossible to attain because of opposition of the unions. Establishment of a high court of commerce to plan an economy fair to all groups is difficult because the pressure groups would try to pack it, as they have packed similar economic tribunals or pressured them into ineffectiveness. To dispel the sham contention that wage increases will not bring price increases would be contrary to what is considered a good political working formula by the administration in an election year. Now the administration is already doing most of the other things Baruch recommended, but frequently in such a way as to defeat its own purposes. While it is doing his things, it is simultaneously doing other things at cross purposes which prevent it from getting results, or achieving announced goals. Its wage increase policy is, for instance, at cross purposes with its inflation and price policies; and its price-holding policy is being daily violated by allowances of indirect price increases.

So we seem to be inevitably embarked on a loose patchwork reconversion program from which we are not likely to escape. I judge, for instance, Congress will enact a limited compromise renewal of the war powers and OPA, with amendments designed to correct the worst defects, but the correction of the defects will rest with the administrative branch. Congress cannot take hold and legislate a whole new program. Once the administration gets renewal of its powers, it no doubt will continue its chosen, current way. This way will not b$ unsatisfactory to business, but will fail to establish any permanent solution of the labor problem or confidence for the economic future. My guess is some private assurances have already been made that the Bowles idea of limiting profits will not be carried into effect Price increases have been authorized daily for the past three weeks to get production, and I see the stock maricet is staggering to its - feet after having been knocked flat by the first announcement of the new Truman-Bowles policy. However, once we get production, most of our ills will evaporate, because competition can protect prices better than got irnment, and if competition can be restored in the labor market, there will be fewer strikes. There are still several major strikes to be called.

Baruch