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1 'ENDIX, A749 Mr. Truman Decided to Favor of Inflation EXTENSION OP R E M A R K S or HON. EDWARD J. THYE OF MINNESOTA IN THE SENATE OP THE UNITED STATES Monday. February 12 (legislative day of Monday, January 29), 1951 Mr. THYE. Mr. President, I ask unanimous consent to have printed in the RECORD an editorial entitled, " M r . Truman Decided In Favor of Inflation/* published in the Minneapolis Star of February 7,1951. JThe editorial contains a number of questions which are answered by Mr. Arthur Upgrrcn. economic consultant of the Star. It is a very thoughtprovoking editorial. There being no objection, the editorial was ordered to be printed in the RECORD, as follows: M R . T R U M A N DECIDED I N FAVOR o r INFLATION For months tho United States Treasury and the Federal Reserve Board have violently disagreed about Federal money policy. Secretary John W. Snyder wants to support par prices lor Government bonds. The Reserve Board wants to let the open market make the price of Government bonds. When tho disagreement broke out in a public argument. President Truman Intervened and decided In favor of the Treasury Department. To throw some needed light on that decision, the Star got Its economic consultant, Arthur Upgren, to answer the following questions: * Question. How Important was the decision made by President Truman after the White House meeting last Thursday? Answer. The decision was more important than any other In giving the United Btates another dose of inflation. Question. Who will be hurt by that Inflation as It comes? Answer. The Treasury of the United States for a large amount, anC the American people will be hurt by a still larger amount. Question. Will the housewife find it more difficult to buy food for her family? Answer. Yes; because more money will compete with her at tho butcher's counter. Question, Are you willing to guess how much more a $20 T asket of groceries will cost Mrs. Consumer a year from now under these policies? Answer. 71 she goes to the legitimate markets, $2 more; if she goes to tho black markets, something more than that and an awful lot of trouble. Question. What Is inflation? Answer. Rising prices. Question, Then we are already having Inflation? Answer. Yes; we have had a considerable amount of it already—cost of living Is up 0 percent since last March; wholesale prices are up 17 percent; tho price of farm land Is up 5 percent; city real estate is up 5 to 10 percent; farm products are up 24 pcrcent; 28 important raw materials are up 48 percent. That Is a part of the Inflation wo «bave already had. Question. What causes inflation? Answer. Too much money, especially when that money Is In the hands of people who already thing prices arc going higher. Question. I take it you believe tho decialon at the Whlto House last Thursday will mean still moro money? Answer. Yes; it Can mean much more. That's what t r e idea of making this war production period another 2 y3 percent war means.
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