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About The news-review. (Roseburg, Or.) 1948-1994 | View Entire Issue (Aug. 3, 1950)
Theory Of Controls Asked By Truman To Re-Arm, Stop Inflation Explained BY JAMES MARLOW , WASHINGTON, UPlA, young man, a veteran of World War II, said to me this week: "President wants Congress to give him controls to stop inflation and to re-arm. How would they work? What's the theory here?" Maybe most people reading this know the answer. Maybe not. This will be written for those who don't The president asked for three main kinds of controls: priority and allocation power, higher taxes, and control over credit. The three are all tied together and they go like this: 1. Priorities and allocations This country doesn't produce enough of everything for instance, steel to fill the government's need when it's rearming and at the same time fill the public's desire for civilian goods, like autos. Since the government's needs come first now, it has to have some say over the use of steel. So it wants power to be able to say to the nation's steel mills: "You must set aside or al locate 20,000,000 tons of steel for re-arming. What's left you can use for civilian goods, like autos." But in rearming the government knows it needs some weapons fast er than others. For instance, it may need a lot of tanks faster than it needs rifles. But the tank-maker L and the rifle-maker both use steel. So the government gives the tank-maker a priority on the 20, 000,000 tons of steel whicl. the mills have allocated or set aside for the government. This means the tank-maker has to get his steel from the mills be fore the rifle-maket gets his. Since this means fewe. things ci vilians can buy, that creates a n other problem which bring us to: 1. Taxes When people have a lot of money jingling in their pockets, and goods get scarcer, they compete against one another in buying. In this way tkey bid up prices. And the increased prices mean inflation. Because the higher the price of things, the less a dollar will buy. But If some of the public's jingling money could be drained away, people would have less left for bid ding up prices. Higher taxes would drain way some of this jingling money and in that way serve as a brake o n inflation. At the same time, higher taxes are needed for other reasons. The only money the government has to pay for the army and other expenses is the money it gets from taxes. So higher taxes will serve t h e double purpose of putting a bit of a brake on the inflation while help ing to pay for rearming. But there still is an inflation loophole here and that brings us to: 3. Credit cor.trol . Even though a lot of their ready cash is drained away in taxes, peo ple still can compe'e with one an other in buying and thus force up prices. How? By buying things on time or cn credit. The smaller, the down payment 1 they have to make on a car, a TV set, a washing machine or some- Liniig ci&e ana ine longer mey have to pay off, the more they can buy, in spite of higher taxes. But they'd be able to buy less if they had to make bigger down payments and pay off in a shorter time. That's why the government wants control over credit: so it can make buying on time a little tougher. But even higher taxes and con trol over credit won't plug all the inflation loopholes. People could still keep on buying, thus forcing up prices and bringing inflation anyway. If that happens, the government will have to take the final sep, which at this point Pres. Truman still doesn't think is necessary. That final step will be control over prices and wages and, if nec essary, rationing. ,-: V MARY LOU WESTON has taken over the Roseburq Travel ser vice office, located in tha lobby of the Hotel Umpqua. Former ly a resident of Corvallis, Miss Weston is a graduate of the University of Oregon. The office is open from 9 a. m. to 5 p. m. Information is offered without charge and bookings may ba arranged for travel to all parts of the world, said Miss Weston. . . (Staff Photol Tons Of American Weapons Sent To Foreign Nations WASHINGTON, UP) Offi cials say that nearly 200,000 tons of American weapons and milit ary supplies have been delivered to friendly foreign governments during the past five months. This total probably will be doubl ed or tripled within the next few months, they said, adding that $1,314,000,000 provided by congress in 1949 already has been allocated and orders have been made a gainst the $1,225,000,000 foreign arms program approved last week. President Truman has asked Congress for an additional $4,000.- 000,000 for arming non-Communist countries. The bulk of the deliveries thus Atlantic pact countries Britian, France. Belgium, the Netherlands, Luxembourg, Italy, Denmark and Norway. Officials declined to give a coun-try-by-country breakdown on the grounds that such information :s of value to a potential aggressor. But they said France has received the biggest share in line with west ern strategy to build up the French infantry forces. Since the North Atlantic area is receiving top priority compar atively little has gone to Iran, I ureece aim me riiiiippines, n was I sair! About 300 war planes, including B-29 superfortresses, have been shipped abroad since last marsh. In addition, 13,500 tons of naval craft up to the size of destroyers also have been delivered. Most of this was from surplus stocks. Since the start of the Korean fighting arsenals and weapons re habilitation centers are being put on a two and three shift basis and stand-by facilities are being called on to help out. Also, some new weapons have started to come off of American production lines for shipment over seas. But most of the military equipment needed is heavy and will take months to manufacture once the orders have been given, authorities point out. Auction Of U. S. Land In Baker County Scheduled BOISE UP) The bureau of reclamation has announced that 16 tracts of land along the Thief river valley reservoir in Baker county, Ore., would be sold at a public auction in North Powder next Tuesday. The shoreline tracts range i n size from Z" to 41 acres, totaling 474 acres. The bureau said mini mum prices have been set, rang ing from $10.50 to $12.34. No pur chaser will be allowed more than 160 acres. The announcement said the tracts are well above the water line. They originally were acquired by the government some 20 years ago when the reservoir Droiect was started. It turned out they were not needed, and they since have been leased, the bureau said it now had decided to sell the lands, rather than continue leasing. ,U. S. May Arm Chinese Nationalists, Acheson Says WASHINGTON UP) Secre tary of State Acheson says t h e United States is thinking of lend ing arms to the Chinese Nation alists in order to strengthen the defenses of Formosa. He declined, however, in answer ing a series of news conference questions, to say what specific steps this government will take. Other responsible officials expect that shortly the United States will resume sending military aid t o Generalissimo Chiang Kai-shek on a limited basis,, beginning with spar parts and ammunition. Acheson opposed the Senate's $100,000,060 Spanish loan "rider" to a pending ECA appropriation. He said there were adequate funds for any justified Spanish loan already available in the export-import bank. He also said that the state de partment had met with no success' in efforts in recent months to per suade Spain to adopt a more de mocratic government. States To Get Grazing Fees After Long Denial WASHINGTON, IP) Fifteen states, including Washington, Ore gon and Idaho, are a step nearer to collecting their share of national forest grazing fees improperly withheld nearly 20 years ago. The house public lands commit tee has approved the bill that would authorize payment of $1, 351,149. The general accounting of fice recently held the reductions to be improper. Under the bill, Washington would receive $19,085: Oregon $77,960; and Idaho $167,473. Brunswick, Germany, is called Braunschweig in German. Donations Doom Only Ragweed Patch In Oregon OREGON CITY UP) Destruc tion is neir for Oregon's only patch of ragweed, scourge of hay fever victims. Officials of Clackamas county announced recently they couldn't afford the $100 necessary to de stroy the 15-acre patch. That brought contributions from hay fever victims and chambers of commerce bent on keeping Ore gon one of two states in the nation free of the weed. County Agent J. J. Inskeep said the patch would be sprayed start ing Monday with donated mater ials, equipment and labor. A $165 cash fund will be used for hand-eradication of scattered ragweed plants surrounding the major infestation near Estacada, he said. Ttiun., Aug. 3. 150 The Newr-Review, Roieburg, Ore. 9 Pacific Northwest To Get Canadian Gas, View SEATTLE, UP) -Canada will be sending its natural gas into the Pacific Northwest before long, Premier Ernest C. Manning of Al berta says. "It is definitely our opinion that we're going to be in the market in the near future as an exporter of natural gas." said Manning on his arrival here to address the annual convention of the Pacific Coast Gas association. He told a gathering that the Alberta conservation board hopes to speed its decision on the appli cations of four companies seeking permits to transport natural gas to the Pacific Northwest. Thp last of the hearings is scheduled for Dec. 4. Canada's vast supply of natural gas will b a "definite factor in hemispheric defense." he said. Early consideration will be given to the possibility of the construc tion of a crude oil line from Alber ta to the Pacific Northwest. U. P. Brakemon Killed In Switchyard Accident ARLINGTON, Ore. UP) Wil lis L. Sargent, 63, Pendleton, slip ped to his death in a switchyard accident here Tuesday night. A brakeman for the Union Pac ific railroad, Sargent was attempt ing to board a caboose that was being pushed by a locomotive. A crew member said he saw Sar gent slip, and yelled for the loco motive to stop. The engineer threw on the brakes, but Sargent already had been struck. HEADS ENGINEERS James I. Shields (above), 60. of Cleveland, was elected Grand Chief Engineer by the Brother hood of Locomotive Engineers, an independent railroad union. w mi lli'iliu'T- 'til - NAMED John K. Strong GOP During War, Hoover's Urge SALT LAKE CITY UP) A western regional conference o f Republican leaders concluded here with a closed session of the ex ecutive committee of the party's naticnal committee and western states members of the national committee. The session followed a speech by former President Herbert Hoover, in which he urged Repub licans to keep their party strong during the course ot me Korean war. "A strong Republican party," the former chief executive said, "is more needed now than ever as a check and a balance on the ad ministration of this government. At the close of the two-day ses sion, delegates expressed enthus iasm over the idea of such regional meetings. They said they provided the opportunity for the exchange of campaign techniques. AS ENVOY Peurifoy (above). Deputy I'nder Secretary of Stale for Administration. ha been nominated hy President Truman as Ambassador to Greece. iPlid Advertisement! 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