INFLATION CONTROL

Otago Daily Times, Issue 26630, 28 November 1947, Page 5

INFLATION CONTROL

FIRST STEPS IN AMERICA LEGISLATIVE POWERS SOUGHT Rec. 8 p.m. WASHINGTON, Nov. 26. The first steps to implement President Truman’s programme for combating inflation were taken to-day, when the Secretary of Agriculture, Mr Clinton Anderson, testifying before the House Banking Committee, asked for legislation to give the Government stand-by price control and rationing powers. He also asked that export controls be extended two years beyond February 29, 1948, the present expiry date. Mr Anderson also urged that the Administration be empowered to limit inventories of grain and to limit the use of grain domestically, and added: “If we were to provide foreign aid only for the next few months I would say we might get by without authoriH' for controlling prices and rationing, but all of us recognise that aid over a much longer period will be required. We ought not to take any unecessary chance of having to curtail our effort at a critical morqent or of endangering our own ecnoomy. Authority for price control and rationing would be a good insurance.” The Secretary for Commerce, Mr Averill Harriman, appearing before the Joint Congressional Economic Committee, requested Government powers to allocate and control the use of scarce commodities, especially steel. He also urged the restoration of consumer credit controls, the allocation of railway equipment and facilities, and the continuance of export controls. Mr Harriman said the proposed measures were precautionary steps to be taken in case a.,rationing and price and wage control programme should prove necessary.