Monday, Sep. 14, 1942

Mr. Roosevelt Makes a Promise

This week Franklin Roosevelt attacked the problem of inflation. And as on March 4, 1933 he attacked Depression by excoriating "the money-changers in the temple," so on Sept. 7, 1942 he attacked Depression's opposite by putting the blame on the lawmakers in the Capitol.

Remember April. First in a message to Congress, later in a fireside chat with the public, he reminded the world that in April he had laid down a seven-point program* for inflation control, that on only two of the seven points--higher taxes and control of farm prices--he had asked Congressional action.

To Congress he said: "I regret to call to your attention the fact that neither of these two essential pieces of legislation has as yet been enacted into law. That delay has now reached the point of danger to our whole economy."

Recall January. In particular the President harped on the passage by Congress last January of a law forbidding any ceiling being placed on farm prices until they had reached at least 110% of parity (an average of 116% of parity for farm prices as a whole).

Said the President to the public: "This act of favoritism for one particular group in the community increased the cost of food to everybody. ... If we must go on up to an average of 116% of parity for food and other farm products . . . the cost of living will get well out of hand. We are face to face with this danger today."

Look Forward to October. "I have asked the Congress to pass legislation under which the President would be specifically authorized to stabilize the cost of living, including the price on all farm commodities. The purpose should be to hold farm prices at parity, or at levels of a recent date, whichever is higher. The purpose should also be to keep wages at a point stabilized with today's cost of living. Both must be regulated at the same time; and neither can or should be regulated without the other.

"At the same time that farm prices are stabilized, I will stabilize wages. [To Congress his promise was even stronger: 'This I will do.'] This is plain justice and plain common sense. I have asked the Congress to take this action by the first of October."

Either Or. "In the event that the Congress should fail to act, and act adequately, I shall accept the responsibility, and I will act. The President has the powers, under the Constitution and under Congressional acts, to take measures necessary to avert a disaster which would interfere with the winning of the war.

"I have given the most thoughtful consideration to meeting this issue without further reference to Congress. I have determined, however, on this vital matter to consult with the Congress. . . .

"The course of conduct which I am following in this case is consistent with my sense of responsibility as President in time of war, and with my deep and unalterable devotion to the processes of democracy." (Cracked one cynical newsman: "I see the President has given the Constitution a 24-day reprieve.")

Yesterday's Plans. Only this assertion suggested why the Administration's plans for vigorous immediate action had been abandoned. There had been indications, from various "anonymous high officials," of lower food ceilings, a cost-of-living ceiling on wages, absolute freezing of salaries above $7,500 a year, a powerful economic administrator to whip the whole program into sense-making action. Perhaps the President had not only felt it wiser to give Congress a chance to repeal the 110% of parity law, but first to put the heat on Congress and the farm bloc so that there would be less criticism of any step he took.

Good Morning, Suckers. To White House newsmen, who had written dope stories about impending drastic moves President Roosevelt gave another hint--less dignified, and likely to live longer in the history books. It came through Presidential Secretary Stephen Early, who greeted them with a Presidential message: "Good morning, suckers."

Many Congressmen felt that the greeting might as well have been addressed to them. Were they really to blame? Certainly in part: they had yielded to the farm bloc on farm prices, had dallied since February on taxes.

But only the staunchest Administration followers in Congress were willing to take all the blame lying down. The President had never presented a real, urgent price bill to his Congress. The bill that became law last January--containing the 110% parity provision --had gone to Congress so full of Administration compromises with labor and farm groups as to be almost an invitation to further watering-down.

Nor had the President, except through the War Labor Board, made a serious effort to hold down wages. And WLB's wage formula seemed to say only that every wage earner should be able to buy just as much in war as in peace.

Thin Ice? The 65 Representatives and the 40 Senators who had returned from the summer recess listened to Franklin Roosevelt's message this week in embarrassed silence. When they heard the President's threat to take executive action unless they gave him a new inflation law by Oct. 1, some sat bolt upright, some grinned, many frowned. At the end there was light, chilly applause. To Congress the President's promise of action in October sounded too much like a threat.

Loyal New Deal Congressmen spoke up bravely, in print, for the President's plan, but even some of them were sore troubled. On their trips back home, they had seen signs of dissatisfaction with the war effort, suspicion about the quality of the President's advisers, even some coolness toward the President himself. Now they were worried, for the Administration and for their own political lives.

Said one weathered, veteran, trendwise Democratic Congressman: "There never was a time when the people wanted more to support the President and had a harder time doing it. The ice is thin."

Now, until Oct. 1, Congressional debate would be in full session. The outlook for clean-cut, straightforward action was bad.

* The seven points: 1) heavier taxes; 2) ceilings on prices; 3) wage stabilization; 4) stabilization of farm prices; 5) war-bond sales; 6) rationing of scarce commodities; 7) discouraging buying on credit and encouraging payment of old debts.

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