The News from Frederick, Maryland on June 8, 1970 · Page 3
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June 8, 1970

The News from Frederick, Maryland · Page 3

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Monday, June 8, 1970
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V- H. x*' A k%.,;l THE NEWS, Frederick, Maryland Mtaday, Jme 8. lf» Page A-3 Price, Wage Controls Opposed By President - WASHINGTON (AF) _ "The administration of price control if an extraordinarily difficult and complex business, and it ; can work only if the people generally give it their support** So said President Harry a Truman as he regretfully canceled price controls Nov. 9,1946. World War II was over, and the initials OPA- for Office of Price Administration- were d i r t y words to businessmen. Congress, under pressure * from farm and industry groups, - had weakened the law seriously. r Many sellers sabotaged ceilings -by withholding goods-partly to get better prices, partly to force · decontrol. "This withholding is becoming so serious as to threaten key .segments of the economy with , paralysis,*' said Truman's message. "The plain fact is that, under this inadequate law, price con- f trol has lost the popular support needed to make it work.** So the nation's first great plunge into direct interference with the free market ended in confusion, controversy-- and more inflation. President Nixon is said to have decided while a young lawyer in OPA that direct controls were unworkable and harmful. He rejects them today. For a while, during the war years, the ceilings had worked well. Wholesale prices race less than 1 per cent a year, consumer prices by about 2 per cent But by the time victory was at hand, both prices and wages were puncturing their ceilings. There were many reasons why all administrations since Truman, along with most congressional leaders, have recoiled at the idea of wage-price ceilings, and which make the odds against ceilings exceeding, ly high at mis moment. 1. If you cannot clamp ceilings on fast, f you have to wait while Congress debates the question imitoad of imposing an, emergency freeze, the gain may be tart before it starts. Much of the price damage during the Korean War came about before the control agency could get organised. Companies that smdled a price freaxe com* ing began marking up prices. Unions are just as alert to try to nail hourly wage increases at levels high enough to ride out an inflationary storm. 2. Voluntary ceilings, or hold- the-line orders lacking enforcement powers, dont work. The Korean War price controller, Michael V. Di Salle, later reported that just 6 per cent of businesses had complied with a voluntary freeze mat preceded the actual operation of his Office of Price Stabilisation. You cannot set a speed limit without posting a policeman to enforce it to use the phrase of Chairman Paul W. McCracken Senate Confirmation Due Richardson In HEW Post of the President's Council of Economic Advisers. S. There is no general agreement whether direct wage and price controls really work in the long run. ft was argued in World War II and the Korean War they actually suppressed and distorted market forces, so mat inflation broke out with extra fury when the controls were lifted or broke down. McCracken contends it is possible controls can leave a country worse off and tend to result in fiscal laziness about finding a basic cure for the real problems behind the imbalances of supply and demand. 4. Most of those who dealt with the wartime controls agreed with Truman mat public support is vital to effective controls, even temporarily. There is doubt such support now exists, among the public or in Congress, for freezing wages and prices during a limited and un- WASHINGTON (AP) - Senate Democratic Leader Mike Mansfield says Elliot Richardson will have no trouble being - confirmed as President Nixon's ''secretary of Health, Education and Welfare- and he has praised tiie switch that is send- ing Robert H. Finch to the White House high command. "I'm very happy that a real pro is going to be in the White House very close to the Presi- ' dent" Mansfield said after Nix- ri on announced Finch is leaving - HEW to become a counsellor to 7 the President. ' To head that vast and trou- ' bled agency, save for the penta- " gon the biggest in government, - Nixon chose Richardson, under; secretary of State and a man with a reputation as a top ad' ministrator. - Sen. Jacob K. Javits, R-N.Y., said Finch would tremendously ' strengthen the White House - staff "and open new channels of communication and cooperation oetween the President the Congress and the country." Javits said Richardson "is a splendid public servant and should be able to head this vital, complex department admirably well." Richardson, 49, is a former lieutenant governor and attorney general of Massachusetts. He served as an assistant HEW secretary during the Eisenhower administration and was named hhe top State Department official under Secretary of State William P. Rogers. "Richardson is an excellent choice for HEW, but a loss to the State Department" Mansfield said. He said he foresaw no controversy over confirmation. "I cant see them raising any objection to a man who had done a good job at State and has been a good right hand for Rogers there," Mansfield said. Senate Republican Leader Hugh Scott said Richardson's Senate Bares Thailand Deal For Viet Help WASHINGTON (AP) - A Senate subcommittee has released testimony disclosing a secret money-for-troops agreement between the United States and Thailand under which Bangkok sent 10,000 men to Vietnam in exchange for $200 million. The pact, according to an extensively censored summary of hearings seven months ago, was signed on the ambassadorial level Nov. 9, 1967. Although existence of the accord was denied at the time, Thailand announced Nov. 14, 1967, it was meeting a Saigon request and sending a division of volunteers to fight in South Vietnam. Missouri Democrat Stuart Symington, chairman of the Senate Foreign Relations subcommittee that held the hearings, coupled disclosure of the agreement Sunday with a letter to Secretary of State William P. Rogers asking for details of American aid to Thailand in exchange for sending troops to Cambodia as well as to South Vietnam, The testimony during a week of closed hearings last November indicated the United States would cover the cost of training, equipping and overseas allowances for a Thai division in South Vietnam. This included providing logistic support and mustering-out bonus for the soldiers. Besides such aid, the United States also agreed to send Bangkok a battery of Hawk antiaircraft missiles and to increase the military assistance program an by about $30 million during fiscal 1968 and 1969 to speed the modernisation of Thailand armed forces at home. Bangkok announced last week it was sending volunteers to Cambodia, along with other assistance, to be paid for, at least in part, by a U.S. military aid program. Symington, contending the public has a right to know more about U.S.-Thai agreements called on Rogers for fuller disclosures- how much will it cost and which government can initiate the withdrawal of Thai forces from Cambodia. The role of Thailand in other Southeast Asian nations, and the part played by the United States, has been a going controversy in the Senate for several years. Published reports in late 1967 that Washington and Bangkok had reached a secret accord for exchanging money and otter aid for Thai troops were denied on both sides. Related to the troop-money exchange has been a controversy over a so-called contingency plan under which the United States has agreed to help defend Thailand from aggression. The Nixon administration, as the previous Johnson administration had done, maintains the 1965 agreement does not extend U.S. commitments in Thailand past the Southeast Asia Treaty Organization pact- the basis for all U.S. involvement in the area. Senate criticism of this agreement and the refusal of the administration to disclose details of the accord, led to passage of amendment prohibiting the use of U.S. ground forces in Thailand and neighboring Laos. appointment "assures a continuation of dynamic leadership of he highest competence. I be- ieve in Elliot Richardson. He will do a fine job/' One Senate dissenter to the administration m o v e - S e n . Ralph Yarborough, D-Tex., said Finch had been demoted. "I hate to see Bob Finch go, to be demoted this way," said Yarborough, chairman of the Senate Labor and Public Wei. fare. Committee. "I see in this hard days ahead for health and education programs." Finch himself said of his new job "it's a higher calling, but a lower salary.*' A counsellor to the President receives $42,500 a year; a Cabinet secretary *60,000. Finch had faced administrative problems and public controversy at HEW, and there had been speculation he might leave the government entirely. Finch joins a White House staff hierarchy which has drawn complaints among some Republican senators who have been saying privately they have trouble, getting, through the staff to the President, H. R. Haldeman, the chief of staff, and John D. Ehrlichman, an assistant to the President and top man in the domestic affairs field, are rated as the most powerful among Nixon's aides. Finch, who resigned as lieutenant governor of California to enter the Cabinet, has been a close friend of Nixon for more than 20 years. "I regret losing him at HEW, but I need him here," Nixon said at the White House Saturday. Nixon said Finch now will fill a major advisory role, counseling him on domestic matters and also on some foreign policy areas. The President said Finch will travel with him regularly, as he did throughout most of the 1968 presidential campaign. In 1960, Finch was manager of the Nixon campaign for the White House. Despite that long association, Finch had not emerged, as some had expected, as a potent force in White House decision- making. Atty. "Gen. John N. Mtchell appears to have become foremost among Nixon consultants in the Cabinet. The President said he had hoped Finch could serve both as adviser and HEW Cabinet secretary. He said experience had shown the task of running that agency to be a full-time job. Finch was the first man to leave the Nixon Cabinet. me ** m BLUE V E I N DISCOLORAT.IONS b l e m i s h e s Get rid of the unsightly look of blue-purple varicose veins...blemishes, blotches...all skin markings. New "RECOVER" Cover Up Leg Cream smooths on easily, covers instantly. Blends so perfectly with your skin, there's no artificial painted look. Your legs look clew, smooth, firm. "RECOVER" is waterproof-even when you swim. Won't staitror tub off on clothes. Washes off easily when you want it to with soap and water. Unique formula (U.S. Pat. Pend ) Various shades to match your skin. Apply "RECOVER" for flawless looking legs. icover. Av«ll«»l« At All restores natural-look to legs and skin EQPLZS DRUG STORKS popular war. That problem did not exist after Pearl Harbor. The OPA was already in being, although mostly on paper. And people remembered World War I had brought a rise of something over 100 per cent in U.S. wholesale prices when there had been no formal wage- price controls. World War H brought an increase of nearly 40 per cent in U.S. wholesale prices from the fall of Poland in 1939 to the surrender of Japan, with price and wage controls from 1942 on. The galloping price inflation was slowed to a crawl in the years 1943-5. But when the ceilings began to crumble after V-E Day and then V-J Day, prices shot up again. The ceilings were badly tattered by November 1946, when OPA finally died. There was no expectation they would be needed again. But the Korean War came only five years later along with new price-wage ceilings. The government was unprepared for action. Wholesale prices rose about 12 per cent in 1951, after Red China's entry into the Korean fighting, and consumer prices went up about 8 per cent. Still, the Office of Price Stabilization did a reasonably good job of holding prices down with the help of military successes, an outpouring of civilian production, and an impressive display of persuasiveness and jawboning. A recession also helped in 1953. When President Dwight D. Eisenhower took office in 1953, he left no doubt price ceilings were on the way out. The OPS went out of business officially in April 1953. The country's first price control agency, the OPA, was created April 11, 1941, by President Franklin D. Roosevelt to prevent "price spiralling, rising cost of living, profiteering and inflation.*' ' Soon after Pearl Harbor, R o o s e v e l t named Chester Bowles, a highly successful advertising executive, to head the OPA. The Emergency Price Control Act of 1942 gave OPA clear statutory powers to issue a sweeping decree setting prices on most goods at the highest level charged in the previous month. There still were many gaps in the ceilings, including 40 per cent of the food in the average consumer's budget. It was April 1943 before Roosevelt issued a hold-the-line order on meat, butter, fish and fresh fruits and vegetables. But Congress already was weakening controls. Fearful of grade labeling, it rejected OPA's efforts to enforce ceilings by quality stand- ards. An effort to roll back some prices stalled because of congressional reluctance to hurt farmers or squeeze producers* profits. Wide-range rationing by then was an overwhelming fact of life. And black markets flourished in many commodities. On June 29, 1946, Truman vetoed a bill which would have weakened and extended the law. He asked for a strong new bill but got a weak one, the statute under which the wage and price controls were killed. Congress passed a bill in 194'6 extending the wage-price control law, but riddled it with weakening amendments. On June 29, 1946, Truman vetoed the extension bill saying it would have added $3 billion a year to consumer prices and destroyed wage stabilization. So, for a time, federal control of prices and wages was dead, and as far as the World War H price chief is concerned, they should remain buried. "I shudder to think of putting them into effect again, in anything short of a catastrophe,'* Bowles said in an interview. Tte Cost M ALWAYS » matter of your owa choke. DAILEY'S FUNERAL HOME 1201 NORTH MARKET ST. Successor To C. I, Cline Son EST. 1M3 Tradition -- Understanding and Personal AttenttOB b always extended at DaQey'f. HEARING PROBLEM? I You're never alone when you wear a Sonotone .Sonotone* Hearing Aids can break the sound barrier that so often separates people. There's a wide variety of powerful, I dependable Sonotone Hearing ' Aids to fit your needs. And ; over 350 nationwide Sonotone offices to provide expert consultation service. (Sonotone Hearing Aids are guaranteed for one year.) Rely on Sonotone to help restore the pleasure of healing. Call for Appointment -Home or Office S O N O T O N E FRANCIS SCOTT KEY HOTEL JUNE 9 1 P.M. TO 8 P.M. Sonotone Of Hagerstown '.. ROY B. FURR, Manager \ 733 South Potomac Street "Free motel and meals?" Yes, if your home is made unlivable by an Insured damage, your Homeowner Policy will pay the additional cost of living away from home until your home is repaired and livable. Investigate a Homeowner Policy at' the Stoffer-Sanner Agency. INSURANCE AGENCYlnc 25 N. COURT ST. DIAL 662-4119 Special Introductory SALE on 1970 7 H. P. Scrampers Reg. $599.95 With Electric Starter Sale Priced *479 95 Also special prices on all other models in stock. VERNON E. STUP COMPANY Rt. 2, Frederick, Md., at Evergreen Point Tel. 663-3185 New Location DR. K G. H ARNISH Chiropractic Physician Of WBsM Place Hours -- Dafly By Appointment Tuesday and Thursday Phone 662*2351 "CLUSTERED SPIRES" 11 Inch Tole Tray --Green or Black $^.50 JIWIltT STOIB 4 E. Patrick St. in Downtown Frederick With your Purchase · TABLE · UMBRELLA · 2 CHAIRS POOL POOLIHCLUOtS 22 , x i3-OutsideDimens.cn . 1 8 x 1 , 42" constant SUN DECK CALL TOD AY-CALL COLLECT | 24-HR. SERVICE DAILY SUNDAY | 662-8127 S {NEWSPAPER! Home-A-Rama (Mail Dept.) 32 Baltimore Annapolis Blvd. HW = Gltn Bum!*, Maryland | Please have your renreseaUtlve eaO, I aMet«ta«l I there is BO obUfattra. · NAME | ADDRESS | CITY STATE · PHONE : 5 ,,,,, {NEWSPAPER!

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