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Show I WEEKLY NEWS ANALYSIS , Truman, flttlee Talk Over World Situation; U. fJ. Soldiers Retreat; Wage-Price Controls Are Hinted (EDITOR'S NOTE: When opinions are expressed In these columns, they are those of Western Newspaper Union's news analysts and not necessarily of this newspaper.) CONTROLS: May Be Soon For the first time, a high government govern-ment official predicted that general wage-price controls will have to be invoked ''to avoid damaging inflation." infla-tion." The official was Secretary of the Treasury Snyder. At a senate finance committee hearing, Snyder said: "I should say that the situation as it is today, to avoid inflation of a damaging nature, these (general) controls will have to be put into effect." Alan Valentine, chief of the federal fed-eral wage-price-control agency, declined de-clined to be specific on timing when senators demanded to know what the administration plans to do about rising prices and wage problems. Valentine told the lawmakers "we must look for and find very soon a plateau where prices and wages are generally in balance. I hope we now are near it." There had been much private talk about price and wage controls, but this was the first time an official of-ficial had publicly stated that the time. was near at hand. One sad fact must be faced, however. During Dur-ing the past months when it was becoming more and more evident that sooner or later controls would have to be invoked, the administration administra-tion took no steps to set up the necessary machinery to direct them. Now that the question is becoming more pressing, there will be another anoth-er delay while the government mobilizes a staff to direct control activities. In the meanwhile, the small towners of America can expect ex-pect the price spiral to continue, A-BOMB: A Frightened World Pyongyang; j OSOUTH j Communist armies, estimated to total 1,000,000 men, plunged oat of Manchuria and smashed the United Nations offensive that was launched to end the war. Pyongyang, capital of North Korea, was lost and U.N, troops retreated southward. Military observers observ-ers were hesitant to name a probable defense line. One possibility seemed just north of Seoul, capital of South Korea. TRUMAN -ATT LEE: For Unity and Peace Prime Minister Attlee of Britain and President Truman held a series of conferences in Washington during -which the leaders of the two most powerful democratic nations discussed dis-cussed the world situation in general and the Korean crisis in particular. Although no official announcement had been made on topics under discussion, dis-cussion, reliable sources said they tried to solve three questions: 1. Should the divided, badly outnumbered, out-numbered, and already reduced forces of the U.N. be withdrawn from Korea as soon as possible, or should they remain and try to fight it out? 2. Should the western powers, if they withdraw or are forced out, Wealthy Red I ' i i - N 1. ! t 1 - r s t , v , . f ?' - ' ' ( - ' K ' 1 . " &, .v-v -Ai .v.- J-.wi- .AAdA.v. vh, ... v:jL vfr'jx. A frightened world heard President Presi-dent Truman tell his weekly news conference that the United States would fight on in Korea and would use the atomic bomb if necessary. Before his remark could be further fur-ther explained, the capitals of Europe were in an uproar. Fear spread across western Europe like a tidal wave. Newspapers issued extras with black headlines and radio programs were interrupted to put the announcement on the air. Near panic on a world-wide scale was evident for the first time in history. The President's statement created creat-ed the impression that he had already al-ready given General MacArthur authority to drop the A-bomb whenever when-ever he considered it necessary and practical. Some hours later, however how-ever a White House statement made it plain that MacArthur had not been given that authority. Although the situation had been somewhat cleared, the question of using the atomic bomb and its status in the event of all-out war caused a wave of discussion throughout the world.. Nearly every country in western Europe went on record against using us-ing the weapon. These nations obviously ob-viously feared retaliation in kind from the Russians should the U. S. employ the weapon in the present Korean campaign. Within the country the question was also top-most in the minds of every American. Most observers believed the public about equally divided on its use. The main argument argu-ment for its use seemed to be it is the only weapon available that would prevent a disastrous military defeat in Korea and the loss of nearly 100,000 American soldiers. On the other hand, Americans in every walk of life pointed out that if we used the bomb the Russians might retaliate by bombing American Ameri-can cities and thus launching dreadi ed World War III. Frederick Vanderbilt Field, center, wealthy New Yorker, indicted for contempt of congress, con-gress, confers with his attorneys, attor-neys, Harold Cammer, left, of New York, and Joseph Forer, of Washington, D. C. Field was indicted in-dicted for refusing to answer questions before a senate foreign for-eign relations subcommittee. KOREA: Heartbreak Road The military situation in Korea reached the point where no one would predict what would happen next. The situation was considered serious, and before this reaches print, may be desperate. Military observers throughout the world were asking themselves if another Dunkerque was in prospect? pros-pect? They wanted to know was it possible, or even practicable, to attempt the establishment of a new defense line? But several bitter facts could not VlP rffanioH TTnito Tnlinn i then carry on a naval and air blockade of Communist China in an attempt to make the governing of China by the Communists as difficult diffi-cult as possible, or should they reject such a course as an interminable intermin-able and fruitless operation and choose instead to divert their forces to the defense of Europe andor southeast Asia? 3. Is a combination of these two courses possible? For example, would it be possible to arrange, through India or the. U. N. a ceasefire cease-fire at the 38th parallel, with a view to seeking an honorable solution, and, if no such solution is offered, then carrying on a limited war against Red China? Observers were also quick to point out that the meeting of the two was further designed to show the world that Britain and the United States were united in purpose. Many observers put the problem facing the President and the Prime Minister this way: To get peace on honorable terms if they can, but to continue to punish aggression if they cannot, without becoming involved in-volved in a general war with Red China and without getting too many of their forces pinned down in the far east. The two men were said to agree on one point, that Europe, not Asia, is the decisive theater of operations. Champion "K '- - -if . L v V r --'I 1 j Korea were in full retreat. Pyongyang Pyong-yang was evacuated and the retreating re-treating army jammed the road to Seoul, endless columns moving bumper to bumper. The road up the peninsula had been bloody, the one back was heartbreaking. And as much as the free nations of the world hated to admit it, the Communist armies of China had demonstrated to the world they could march where they wanted to in the face of stiff resistance. General MacArthur estimated that China had thrown as many as 1,-000,000 1,-000,000 men into the campaign. Military observers said it appeared ap-peared the Chinese were determined deter-mined to destroy the eighth army. If Lt. Gen. Walton H. Walker, commander, com-mander, decided to stand and fight at some spot in South Korea, the U. S. army would face the greatest odds in its history. Most observers admitted frankly that such a stand would be almost impossible against overwhelming odds. And a defeat would mean the loss of the entire eighth army. The only other possibility was a beachhead like the one at Pusan, with artillery, planes and ships putting put-ting up a wall of steel from behind which the eighth army could be evacuated to Japan. PRICES: Hit New High The government's cost-of-living index soared to a record high of 174.8, meaning 174.8 per cent of the 1935-39 price average. A seasonal decline in meat prices failed to halt the general upward surge in the cost of things that enter en-ter into a family's living costs. Apparel Ap-parel and house furnishings led the way, but ail major items in the family budget joined the climb. The, increase brought automatic pay boosts to nearly a million automobile auto-mobile workers whose contracts are geared to the rise and fall of the monthly price indicator. Millions of other workers, however, find only a greater strain on the weekly pay check. Middle income groups in the United Unit-ed States, especially the white collar col-lar worker whose wages are not tagged to a cost-of-living contract, are feeling the pinch of increased prices. Big Springs Special and his ownej, Lloyd Robinson, 19, of Big Springs, Texas, are shown just after the steer won the International In-ternational Livestock Show's championship. The steer was sold for $12 a pound, bringing the youthful owner $12,300. It was a record price for the show. PROFIT TAX: House Passes Measure By a vote of 37R to 20, the house passed an excess-profits tax estimated esti-mated to bring in $4,600,000,000 from corporations in 1951. The measure is now expected to pass the senate and reach the White House by New Year's. No one had expected the measure to get action in the lame-duck session ses-sion of congress. The Korean crisis, however, made immediate action necessary. j |
