Show Break Impends At Washington Over Inflation Issue Forcing Administration Administrator and Congress to Open Rupture WALLACE WALLACE IRES SOLONS L Secretary's Speech Adds Fuel to Monetary Fire i By LYLE C. C WILSON 11 United Press Staff talt Correspondent WASHINGTON ASHINGTON W Sept 21 The 21 The in In- Issue was smashing through party lines and pushing congress and andi i the administration toward an open break today Congressional read an address of Secretary of ot Agriculture Wallace at Chicago yesterday as unqualified un uno q qualified defiance of their program Inflation Uon appeared to have a majority ma- ma of house and senate The legislators legislators legislators legis legis- were ready for lor a fight and wished they were in session Senator Thomas D. D Okla Okia a 1 lead leader ad er of the thc inflation bloc met Wallaces Wallace's challenge today with a demand for Jor a 40 dollar I Some of us Jast last winter thought a 1 cent 0 d dollar 1 would do the the Thomas told the United United Press Weve got it 1 but bui it is not enough A t 50 SCent S Cent dollar ollar may not serve the purpose se We may have to go to 40 c cents and andI should hould not hesitate te todo so- so Thein- Thein nation fight will wUl continue You may I depend on that Congressional feel that thattie the tie presidents president's honest dollar policy has ha las not been carried out sufficiently Thomas declared that th t in his belief President resident Roosevelt hasn't done all alle he e has dared do to toward inflation without without with- with out ut adopting the radical proposals of 01 the he congress bloc DEFINITE OBJECTIVE On May 7 the president said the administration has the definite tive ve of raising commodity pric prices to touch such uch an extent that those who have borrowed x money will on the average be e able to repay that money in the same ame kind of doll dollar r which they bor bor- rowed owed Up to now Thomas asserted all that lat has has' been done in that direction is 3 to start open market purchases es of 01 government government bonds press for credit expansIon ex- ex and push reopening of banks The gist of Wallaces Wallace's pronouncement pronouncement pronouncement pronounce pronounce- ment that inflation has gone far enough nough for the time being and that the ic country must find its immediate salvation in increased payrolls and decreased farm production was a direct direct di- di challenge to aroused majorities in Iii both oth houses The speech nevertheless was WM considered con con- dered by capital observers as second in n importance only to President Roose- Roose Roosevelt's Roosevelt's velt's elt's inaugural address in which the outlined the broad scope of his cry ery ry plans Wallace promised higher agrIcultural prices in a few months specifically in January and said they might be achieved in a few weeks That program scarcely ly meets mc the demands of s such ch party leaders as Chairman Harrison of the senate fiance fi Ii- nance ance committee who publicly stated after Her a conference with Mr Roosevelt that hat the administration must inflate while crops still are in the hands ands of f the producers or accept os-accept mandatory Inflation by congress next winter REACTION IRRITATES Market reaction to the Wallace Wallaces s speech ech infuriated congressional Continued on Paw Pue Three 4 I BREAK LOOMS LOOMS' ON INFLATION Continued from Page Pace One For whatever cause commodity com corn and stock markets markets' sagged after fter the secretary spoke in Chicago Cotton went off oU 2 a bale at atthe the moment moment moment mo mo- mo- mo ment a disgruntled cotton conference was adjourning here without having obtained administration acceptance e of ot its ts inflation proposals Close observers of the money dis dis- ute believed the Issue had shifted I from rom mere Inflation which already has las been sanctioned by the adminIs ration to the extent that the dollar I today oday is js worth but 60 cents In foreign loreign markets The The argument now is over the quantity of money as as' as well as th the value alue of ot the dollar The embraces the so called greenbacks Some congressional who refuse reluse to discuss publication agree privately that the printing press money is Js what they now are after alter A greenback greenback greenback green green- back issue with provision for lor amortization amor anor- was Included In the so called Thomas Inflation plan approved by congress last session The issue is discretionary with the president The administrations administration's mon money y policy polley as outlined by Wallace did not Ignore inflation The secretary said he was for controlled inflation I The e tenor of h his s speech ech however was that no fundamental purpose immediately Immediately Immediately Im im- Im- Im mediately would be served merely by further cheapening of the dollar And to o the he held out no promises whatever The secretary's prescription was first reorganization of ol the domestic market by controlled production with the thc explanation that this was a stopgap stopgap stop slop gap policy The long time plan of the administration was for lor expansion of ot foreIgn loreign markets And to eX expand and foreign market Wallace cm l that this country m must t lower it Jt tar ills IUs to to it customer customers also aLto to iq sell seU |