FRIDAY. MAY: 25. 1962 ehind the News onnummaiimmanumummammanumma = E , 1 2 1 j' E • ii = =, F 7 4 .,Z . i '7"."117 4 . .„:„.::,„. ...,.,.,..„ k l : :_.,. . EIMIE Public Interest M L 1 E i os t of the comments re- unions are not absolute, but - garding the controversy over ) relative. Like all our freedoms, "E. steel prices have tended to miss they are to be exercised with • the essential issue. The ques- due - regard for the freedom of t Ulan is not whether, in' general, others and for the public E companies have a legal right -welfare.• Thus, the government to: raise prices. Ther have, of has ftstricted the right of = course. unionslo strike in cases where # „ ,The question concerns rather the public health or safety is E the wisdom of raising steel endangered. ,:> • F.. prices at this time, whether age-Prica Concern ~ F_-. - from the point of view of the i .. i companies, of their; employers The previous administration, e or , of the public. ?It deemed as well as the present adminis- E unwise, the issue tiirns on the ' tration, concerned itself with LI consequences of such unwisdom wage-price relationships in the @ fOr these three groups. , steel industry. In 1959, for ex • llt continues to be argued, to . ample, President Eisenhower• be sure, that prices are econ- urged both the companies and =• E omic matters, to be determined the 'union to follow a policy of , E - . bY market forces alone. Actual- "restraint" in the interests of ' E ly. Steel prices, like the prices a "non-inflationary" settlement. •of any product produced by a It is true that, when negOtia •E". '4nall number of large comps- tions !broke down, the govern = nies, are policy decitions in the ment; did not then take im-- = making of which rriarket con- mediate action. But when it be ff• ditions are considered but not came evident that a bitter:and 5' passively accepted, protracted strike was in pro -4.. Such a decision - is made in ,gress, the Taft-Hartley Act was • the first instance by a leading invoked to halt it temporarily. :z - -: company and is usually fol- Later, when it appeared that . lowed by tie remaining corn =it might : resume,Vice President ponies. If ifdt, - it is reversed. r= E - Nixon and Se cretary Mitchell = - No 'Political Vacuum' intervened and, armed with the = , = Such decisions are not made threat of Congressional action, = ' virtually dictated the terms of ,Pf in a political vacuum; more- . a settlement' of. the 116-day cal •:.-.• over, they usually have politi- . strike. = consequences. In the writ- • E er's opinion, it would be politf- The p re resent. administration has diffed primarily from the ,-- catty irresponsible to ignore 1-.. anticipated corisegueines or to preceding one not in its gen -74 Seek to guard against•u4nfortun- eral positiog with regard to the problem, but in its prefer -4 ate consequences. Atan earlier F-- time, it 'was common to refer ence to press for desired co to economics by the somewhat operation ,before rather than -..E. broader I and .more apt term, after an impasse had been ---= "political economy." reached. Hence the "guide =• I The government of th e posts" laid down in the Presi- E'United States is directed by = dent's . Economic ' Report for E the EmploYment Act of 1946 to 1962. Hence the activity of Sec = use "all practicable means" retary Goldberg .in trying to - E consistent with our institutions keep negotations going. And !'to promote maximum produc- hence the measures taken= by E- tion, employment and purchas- the. President-when, following• g. ing power.' . an apparently successful,. out @ I It was this law which estah-: come; the steel price rise was E . lished the President's Council announced. •of Economic Advisers. Each . Questions on Interventio n § year since 1946, with the help .. • =of its staff, the Council has It can be argued that less = E --- Prepared the Economic Report action intervention in the early .of the President. Likewise, it stages would , have been pre -M has worked closely in matters ferable. It can also be argued E of national economic policy that, , rather than act on his own ; c"with the Joint Economic Corn- the President should have turn =. inittee of the Congress: also ed ,to Congress. - 5 established by this law, bUtßut such arguments Come E originally under a slightly dif- 'down to the issue of the wisdom ..g: ferent name. I or unwisdom of alternative =:, The administration's moves .courses of action. They do not ff. during the 1962 steel negotia- - support a policy of inaction, _'tions arid following the steel' much leSs the concept of an = price decisiori should be viewed' absolute and unvarying right In ; the light of these develop- of conmanies or unions to make E:rnents. I decisions without, considering 0 ', • The rights of - ' companies and the public interest 1 - 4 I , KIIIIIIMUMIMIIMUIMUMMIUMIIMMIIIEIIIII=IIIIIIIIIIIIIIIIIIMIIIMMUUMIIIIIIIIIIIIMMIIIIIIMMIUIIOIIII=IIIIIIIIIIIIIIIIIIIIMMIWIMIIIMIIMIIiIitiIina THE DAILY COLLEGIAN". UNIVERSITY PARK. PENNSYLVANIA lIIMERIM Reprinted with permission from the Philadelphia Inquirer What's Going on Hero?" .By ARTHUR H. REEDE Professor of Economics Pricing The writer is not blind to the problem faced by the Amer ican steel industry. Much of its equipment is outmoded and therefore at a "disadvantage When competing with the prod duct of mills rebuilt since 1945 , in war-ravaged 'nations. But how is this situation im proved if one raises' the price of the product of an old wire or pipe mill competing with a new one? The administration's policy of speeding moderniza tion by more generous tax policies, especially as regards depreciation, seems much bet ter adapted . to meeting this problem. Is it wise to raise prices at a time when there is extensive unutilized capacity and wide spread unemOloyment7 Or at a time when the demands of defense production remain high, and when we are losing gold to other nations? Or at a time when, however tacitly, union' representatives have been given to understand that a "non-inflationary" settlement is desired and accordingly have agreed to the most moderate contract since the end of World War II? Differences' on Details There is room , for honest r i dif ferences as to he precsei de tails in these otters. Some economists would admittedly favor a minimum of govern ment intervention in them. In the mixed ecom!my of the '6o's. however, and especially while . the cold war continues active. a- majority of economists will be concerned about "non-clas sical" or "cost-push" inflation, and, like a. majority of our people, will favor an active interest on the part of our government .in economic sta bilization.' . • It is a mistake'to conclude that the administration has any plans for( formal price control. It is interest in evoking, both on the part of Management and of Labor, a greater amount of consideration of the public's interest in, economic growth with a minimum of inflation. The President expressed such views with ,considerable forth rightness in' his recent address at the convention of the United Auto Workers. Contrary to a widespread im pression. he did not cling dog matically to higher productiv ity as an exclusive guidepost for 'wage acljustrtients, but took account of those differences in situations which we often call "wage inequities." •liit.til The staff of News and Views, a publication of the College of Home :Economics, will hold a bake sale in the Home Economics lobby. Ronald Green. professor of geo , physics ;at the University of•Taii mania, t ill speak on "Geophysics in Australia" at the - 11Iineral In dustries! Colloquium at 3:45 p.m. in the M.I. auditorium. Student 'Encampment Applications for the fall Stu dent Encampment to be held Sept. 12-14 are now available at the Hetzel Union desk and must be returned there tomorrow. Agricultural Economics sion, 1-5 p.m.. HUB assembly room. STRAW BEER-CAN HATS Special SI.BO PARISH'S Campus Shopping Center 113 S. GARNER 't•Zrif7 ,l l , . , :or. ' TODAY ON CAMPUS Bake Sale Colloquium Meetings ° iJ O 0 0 , 0 0 0 90 0 U VU • THAT BREAK THE CAMEL'S BACK Summer vacation is a two way trip, so, why load yourself down like a beast of burden? Remember, it's the last straw that breaks the camel's back. Be bright! Travel light! Store all of your bulky winter wear in one of our jumbo storage boxes. Fill it—we'll.insure the contents, dryclean everything - and put all in the safe. keeping of our storage vault. In the fall, each item will be pressed and ready to wear when • you call. Not a cent required until after vacation, and then only a penny or two a day for 'storage plus our standard cleaning charges. Stop at the nearest Balfund store for complete details. Agricultural Extension cof fee hour, 2-3:30 p.m, HUB main lounge. Gamma Sigma Sigma, 8:30 and 8 p.m., 105 Armsby. Inter-Varsity Christian Fellow ship; 7:30 p.m.. 11l Boucke. Taylor Accepts Position Hugh Taylo r. assistant Oro tessor of geochemistry. has ac cepted a position as an assistant professor of geology at the Cali fornia Institute of Technology. Pasncleha, Cal. His resignation is effective June 30. Taylor has taught here since February 1961. Prior to that time he was an assistant professor at the California Institute of Tech nology far a year and a half. .:.linimantuttntimounituminimmuniunitst 1 RADIO•PHONO 1 • SERVICE " I i a delivery AD 843021 E.... & pick -up - { , ) TELEVISION --1-11$--:SC 1 SERVICE CENTER 232 S. Allen St. A 4 finotatimminnimaiummitusiumn nunnetnat: 1 ) 11 1, , ant: 307 W. BEAVER AVE GARNER ST. PAGE FIVE
Significant historical Pennsylvania newspapers