Declaration of War

Congress reconvened this week, in answer to Harry Truman's summons. Facing his ex-colleagues, the President then asked for the most sweeping controls over the U.S. economy which had ever been demanded by a President in peacetime. Congressmen, who had returned to Washington with their minds on the European Recovery Program--which most favored--could hardly believe what they heard.

As the President walked down the aisle of the House, there was no inkling of the shockers he had in store. For 15 minutes, as he talked about ERP, Congressmen listened with calm attentiveness, applauded politely at intervals.

Three-Way Attack. Then the President switched themes. He proposed an assault on the inflationary spiral from three sides. To relieve the inflationary pressure of too much loose cash, he asked that consumer credit controls (abandoned Nov. 1) be restored, that speculation on the commodity exchanges be limited, and that savings be increased. To channel scarce goods into essential uses, he wanted authority to control inventories and to allocate such essentials as steel and grain.

By now Congressmen had stopped applauding; most sat in stony silence. Senator Bob Taft clamped his jaws until the muscles bulged. Even if G.O.P. congressmen could bring themselves to accept Harry Truman's first two methods of attack, they could never agree to his third. Despite his avowed opposition to all controls as the methods of a police state (TIME, Oct. 27), the President now wanted power to:

P: Impose price ceilings on essential cost-of-living items ("food, clothing, fuel and rent") and basic industrial materials. P: Ration basic cost-of-living items "as a preparedness measure." P: Prevent wage increases ("although I believe there would be few occasions for its use"). P: Extend and strengthen rent controls.

The President spoke with full knowledge of the impact of such "drastic measures." He hoped that not all the weapons he requested need be employed, that voluntary measures could turn the trick (particularly under the threat of his club in the closet). But, said the President: "It is apparent that no other methods can safely be counted upon to protect our people from the dangers of excessively high prices and ruinous inflation."

Two-Way Defense. The President left many an unanswered question. Which powers would be used immediately, and which ones later? Might not price ceilings on some items turn out to be price floors? Was it possible to control just a part of the nation's economy? The President had said he wanted "selective" controls. But the manufacturers or retailers whose products were "selected" could, and would, with equal justification, call them discriminatory.

The first reaction of congressional listeners was one of stunned amazement. Politics had, quite obviously, played an important part in the message. Harry Truman had hoped to catch the Republicans over a barrel. He had certainly caught them off base.

But the speech was more than politics. It was the President's answer to growing demands that something be done about prices. The speech was bound to cause bitter controversy and fierce debate. That debate would tell how good an answer it was.

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