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Show NEWS clZ clZoe \ ( NEwsrt\THE NEwsrt THE BJHIN BEHINiu : ' f oe THEl'tR THEltR lmmTHEl'tR ThENE BEHINiuThENE ThENEBy EJISByPAULMALLON ( . ' lmm EJIS By ByPAULMALLON PAUL PAULM&LLON PAULMLLON MALLON & Y ; , Beleatcd Relensed Released by Wcstera Western Newspaper Newspper , UnionbIARE Union UnionMARK \ MARK l\IARK l IARK bIARE UP OF or FOREIGN rOREIGV l\IOVlErJ l IOVlErJ MONIEf9 MONIEf9COMPLICATES lIOVlErJCOMPLICATES \ MONIESCOMPLICATES COMPLICATES OUK OUR PROBLEMSWASHINGTON PROBLEMSWASHHhGTON PROBLEMS PROBLEMSWASHINGTON WASHINGTON WASHHhGTON - The ST Sv cdes odes cdeshave odeshave 'have have ' have made the krona more costly costlyto costlyto costlyto to us It is worth 27 21 cents plus now nowInstead nowinstead nowInstead Instead of 23 cents plus The Cana Canadians Canadians Canadians dians d d the same thing Their Theirdollar Theirdollar Theirdollar dollar has been marked equal to toours toours toours ours Instead of SO IJO 90 cents as former formerly formerly formerly ly To whatever extent c'ttent cttent cetent ' the rest of ofthe ofthe ofthe the world fol1ows follows ( oUows suit swt its money moneyw W 11 U go up in value valuc and ours will willgo willgo willgo go down Theoretically it can buy buymore buymore buymore more goods here but only theoret theoretIcal1y theoretically theoretically Ical1y ically priceshave because actually our prices priceshave priceshave have gone up more than the 10 per percent percent percent cent increased mcreased value of the foreign foreigncurrencies foreigncurrencies foreigncurrencies foreigncurrenciesAn currencies currenciesAn An Hem Item from South Africa Africatells Africatells Africatells tells the inside talc tale It says saysAmerican saysAmerican saysAmerican American goods were being beingbought beingbought befogbought bought there in quantities hlth bith hlthcrto bitherto hithcrto crto erto unknown-until unknown until unknown - until the th * OPA OPAptlce OPAprice OPAprice ptlce price ceilings celllDgS went off butsince but since sincethen sincethen sincethen then purchases purchascs have been limit limIt- limited limIted limited - - ed Do w we want them to fill filltheir filltheir filltheir their shops with goods ( as they theyreport theyreport theyreport report ) when we are short abort ihortWell ? Well SVell we want to increase our ourworld ourworld ourworld world trade But Bnt can we do dothIS dothis dothis thIS with shortages ? Of such suchconsiderations suchconsiderations suchconsiderations considerations Is the charactert characterof character / of t our oonfnsion oonfuslon oonfusson oonfussonReally oonfuslonReally oonfnsionReally Really it oonfuslonI is worse Today we are areprovmg areproving areproving I provmg proving we can have inflation With Witha witha a balanced budgetBIGGEST budgetBIGGEST budget budgetBIGGEST BIGGEST PEACETIME PEACETIl\IE PEACETIl IE \ BUDGETThe BUDGETThe BUDGET BUDGETThe The main mam business of this adjourn adjournIng adjourning adjourning Ing congress has been its least leastwidely leastwidely leastwidely widely reported aspect It was wascharged wascharged wascharged charged with appropriating approprIatmg money moneyfor moneyfor moneyfor for Mr Truman s unprecedentedpeacetime unprecedented unprecedentedpeacehme unprecedentedpeacetime peacehme peacetime budget of nearly $40 40 $ 000 000000 000 000 The house trimmed sharp sharp- sharply sharply sharply - - . ly but the senate put most of the themoney themoney themoney money back in the bills as is the thecustom thecustom thecustom custom In the end Mr Truman wIll wIllget willget willget get appropriations for this peace peacehme peacetime peacetime hme time fiscal year ( which began July July1) July1 1) 1 ) that are roughly roughIy four tour times and andmore andmore andmore more greater than what Mr Roose Roosevelt Roosevelt Roosevelt velt ever spent . , . The Tbe hIgh highest hIghpst highcet pst Roose Roosevelt Roosevelt Roosevelt velt expenditures in prewar was was9 $9 9 ? $ 665 000 000 in 1940 when he be tookin took tookIn tookin In nearly $6 6 $6000000000 6000000000 $ 000 000 000 In hIs hIswhole hiswhole hiswhole whole administration admlmstratlOn he roughly roughlytook roughlytook roughlytook took In halt half of o1 what he spent whIch whIchwas whichwas whichwas was thought to be inflationary lflatlonary al although although although though it never got prices up The Thespendmg Thespending Thespending spendmg spending is largely tor for army and andnavy andnavy andnavy navy along with Increases in inpeacel1me inpeacetime inpeacetime peacel1me peacetime activities actlvll1es ot of governmentHowever governmentHowever government governmentHowever However Mr Truman is ap- ap approachmg approaching ap approaching - - proaching proachmg a * balanced budget at tlus this tlusspendIng thisspending thisspending spendIng level Wartime taxes taxeshave taxeshave taxeshave have not been reduced materIally materIallyfor materiallytor for tear fear of the big debt so he W1ll will W1lltake willtake willtake take m in this year around or upwards upwardsof upwardsot ot of $35 35 $ $ 000 000 000 Retiring Retlrmg ( ( BudgetDirector Budget BudgetDirector Director Smith S1ll1th calculated the figure figureat figureat figureat at $39 39 $ $39500000000 39500000000 $ 500 000 000 which is us $8 8 $ $8000 8000 $8000000 8000000 $ 000 000000 000 000 more than the January bud budget budget budget get estimated esl1mated ) Agitation AgltatJon thus has hasbegun hasbegun hasbegun begun here for a real tax reduction reductionbut reductionbut reductionbut but some authorities want to retlre retire retlrethe retirethe retirethe the debt instead IDstead In the war weroughly we weroughly weroughly roughly took m In halt half what was spent spentor spentor or about $46 46 $46400000000 46400000000 $ 400 000 000 in 1945 1945while 1945while 1945while while spending spendmg $100 100 $ 400 000 000IVFLATION 000INFLATION 000 000INFLATION INFLATION IVFLATION IS HEBE HERE HEREIn HEREIn HEBEIn In the face of o1 this promised prormsed sta stabillty stabrhty stabihty b-illty b illty brhty - for the first time hme m In 16 years yearswe yearswe yearswe we have Inflation lnfiahon It is a real mflation inCation m mflatlon flatlon flation due to a * shortage of goods goodsm goodsin m in the presence of o1 widespread buy buyIng buying buyin Ing rower power The admmistratlon administration administr ? ' " " has h " figured it would stop the inflatIOn inflatIOnas inflatioas as soon as it obtained obtamed production productionbut productionbut productionbut but we are not getting productJon production productJonand productionand productionand and business busmess estimates it will W1ll be bethree bethree bethree three to five years before betore it can take takecare takecare takecare care of accumulated 41ccumulated demand not notcalculating notcalculating notcalculating calculating the Increase in ID m consum consumer consumer consumer er demand . which v.hIch vhIch has developed developedfrom developedfrom developedfrom from the presence of wIdespread wIdespreadbuymg widespreadbuying widespreadbuying buymg buying power To add to the deter deterrents deterrents deterrents rents of strikes slowdowns govern governmental governmental governmental mental mismanagement famine famme re relIef relief reIief lIef the absence of a foreign trade tradepollcy tradepolicy tradepolicy pollcy policy cheapening cheapemng money sensa sensateonally sensationally I Ihonal1y honal1y teonally high prices and no real realpeace realpeace realpeace peace along with Wlth pitifully Insut insult insultficient Insutficlent insufficient ficlent ficient product on-the on the on - the OPA was wassharpiy wassharply wassharply sharpiy sharply modified ahead of at tJmeCan timeCan time tJme timeCan Can we get out ut of It ' " Yesbut Yes Yesbut Yesbut but only by shrcwdmanage shrewdmanage shrewd shrcwd manage manage- management management - . ment meat By this I mean eonstruc- eonstruc construct constructtive eonstructlve cinstruc-tire cinstruc tire - - tlve tive management of overail overall verall pol poi polIcy poiIcy polIcy Icy as well as detailed affairs affairsObvIously affairsObviously affairsObviously ObvIously we are entering entermg a pe perlod penod period . rlod nod in which there will be no nor normal norcoal normal mal coal It 13 is a previously unchartedperiod uncharted unchartedperiod unchartedperiod period We are in Inflation lnfiation Instead Insteadof Insteadof Insteadof of fearing fearmg Inflation as officialdom officialdomverbally officialdomverbally officialdomverbally verbally does ( and then shoots shootswagcs shootswages shootswages wagcs wages up then prices and next nextwages nextwages nextwages wages again agam ) it must recognize we weare weare weare are in it it . . If It H we get production and andptlces andprices andprices ptlces prices start to decline decbne we will rec recognlze recognize recognize ognlze ognize that the era In which we now noware noware noware are was a period of unprecedented unprecedentedInfial10n unprecedentedinflation unprecedentedInflation Infial10n inflation In a word the govern government government governtnent ment has started the toboggan Thequestion The Thequestion Thequestion question now is can it be stopped stoppedCan ? ' Can it be stabil stabll zed ? ' It has reached reacheda a new level . . Can this be kept reachedI ? I CLEAR-CUT CLEAR CUT - - - PURPOSES PURPOSESCertainly PURPOSESCertainly PURPOSESCertainly Certainly no sat sfactory torelgn foreign torelgntrade foreigntrade foreigttrade trade agreement can be made loose loose- loosely loosely loosely - - lyon ly on such development as congres congresslOnal congressronal congressional slOnal sronal approval of the $4 4 $ 000 000 000 000British 000British OOflBritish British loan ( which really cancels cancelsnearly cancelsnearly cancelsnearly nearly $25 25 $ 000 000 000 of lend Jease lease Jeasealthough leasealthough leasealthough although this tlus figure was never mentioned men mentloned mentroned tloned troned in connection with that a ac action action hon tion ) To make a foreign trade tradepohcy tradepolicy tradepolicy pohcy policy you would hav have to create createfuIJ createfull createfull fuIJ full management tor for it manage management managemeat management ment meat over goods and prices as well wellas wellas wellas as currencIesSuch currenciesSuch currencies currenciesSuch Such controls would be mtoJer intoler mtoJerable intolerable intolerable able and unworkable in peacetime peacet1m . , |