responsibility for maintaining a relatively stable price level, a stable value for money. Senator FLANDERS. We tried that so far as the value of money is concerned. Mr. HENDERSON. I think the obligation of the National Legislature is to maintain a good stable exchange basis for its money. I am not recommending any of this "funny money" spending, Senator. I opposed that in the early thirties as much as I do now. What I am talking about is the necessity of maintaining a stable economy of which a stable price level must be a part. Mr. Chairman, the Congress is constantly making a series of choices. If those choices are made by the individual committees of the Congress without the guidance of a central committee, the result is bound to be a hodgepodge. That is why I say that the opportunities and the responsibilities of this committee are enormous. It is on this committee that the Maximum Employment Act places a responsibility for developing the over-all economic plan to guide the individual committees of the Congress. Senator FLANDERS. May I advert to the name of your organization, Americans for Democratic Action, and suggest there in my experience in campaigning Senator O'MAHONEY (interposing). Do you have to campaign in Vermont? Senator FLANDERS. Only in the primaries. I was saying that the removal of price controls, I would conclude, are an example of American short-time action, because if there was anything in my State that was popular with the sovereign voters of the State it was the removal of all price controls. So I put that down as one of the examples of Americans in Democratic Action and Mr. HENDERSON (interposing). What do they think about the high cost of living? Senator FLANDERS. I was just thinking about the consumer of 1946. Senator O'MAHONEY. He is talking about the time when promises were made rather than the time of promises. Mr. HENDERSON. The committee examined the American Manufacturers Association and others on their statement how prices would go down if they got rid of the OPA. Senator FLANDERS. Mr. Henderson, all I did was to listen. Senator FLANDERS. I listened sympathetically. I will add that word "sympathetically," because my real thought was not just intended as a jibe. Mr. HENDERSON. I agree. Senator FLANDERS. There is in my mind the thought that your line of thinking involves controls, not of the wartime sort, but does nevertheless involve manipulation by the Government, some of which will be unpalatable, and which under the old notion of democracy and democratic action will not seem to fit into the picture. Mr. HENDERSON. Now, Senator, let us take the question of a certain textile company that during the war had taken over a special 2-percent discount. I think the fellow is a New Englander, probably a friend. of yours. There were negotiations between the powerful groups of buying elements which enabled him to restore that 2 percent. 65210-47-pt. 1-33 You take the building industry where a part of the final cost of th building amounts to only $30 or $40. If that industry just reduce its price it would not be passed on. If there was some voluntar agency that could make a simultaneous reduction that would not in volve the exercise of controls, although it might involve the same kin of pressures which big business exercises on the others, which I alway thought was an unhealthy thing, but we are talking in this price stabilization period of an organized effort to make these negotiations Senator FLANDERS. Have we consulted with the Department o Justice? Mr. HENDERSON. Well, you know, as far as I can give a ruling o that without being a lawyer or a member of the Government, there i nothing in the world to prevent any group of businessmen, each on individually agreeing, or saying to its Government, "We will reduc prices." There is no violation of any of the antitrust acts by tha If there had been, we would have been guilty many, many times i the past. Senator FLANDERS. Mr. Hart, have you any questions? Mr. HART. No, sir. Senator FLANDERS. I think, Mr. Henderson, we will excuse you, an the committee wishes to thank you for your comments and your fin presentation. Mr. HENDERSON. May I thank you and the committee. Senator O'MAHONEY. I cannot take the time now to ask a lot o questions which I would like to ask, because I know Mr. Martin ha a date at 1 o'clock which he must keep; but I would like to make th comment with respect to what the chairman has said about his ex perience with Americans for Democratic Action in Vermont. I thin that without question the masses of the people of America, includin those in Vermont Senator FLANDERS (interposing). We included them in the electio last fall. We included the rest of the country. Senator O'MAHONEY. That is what I was about to say. American everywhere dislike regimentation by Government, but the solution that seem to be presented to us depend upon the discovery of som mutual force, and I take it ADA is trying to find a course betwee regimentation by the Federal Government, if we could make th economy work under that, and the real competitive system that seem to be desirable. Is that your objective? Senator O'MAHONEY. I notice at the very beginning that you stat we were not yet ready for a free market. Do I understand that t mean that you feel a free market could be of advantage? Mr. HENDERSON. That is right. Our feeling is we passed into so-called free-market situation entirely too soon, and the condition that would make a real free market were not present. Senator O'MAHONEY. I just wanted to make the record clear yo were not appearing as an advocate of Government control as such. Mr. HENDERSON. No. Our nine-point program is not a suggestio for the reestablishment of legal control. The CHAIRMAN. I take it as far as your program is critical of wha the Government has done it includes the administration as well people in the legislative branch. bald Mr. HENDERSON. Oh, yes. I was surprised, Senator Taft, that was not your first question. The CHAIRMAN. Well, I note the housing controls, which were removed by the President and not by Congress, and one or two other things. Mr. HENDERSON. I might say, in the document we submitted you will find that we feel that one small step on housing could be accomplished by what is known as the Taft-Ellender-Wagner bill. The CHAIRMAN. Four times as large-500,000 instead of 125,000. Mr. HENDERSON. When you get Americans for Democratic Action, there is nothing small about them. The CHAIRMAN. Thank you. (The data furnished by Mr. Henderson is as follows:) LIST OF TABLES ACCOMPANYING STATEMENT OF AMERICANS FOR DEMOCRATIC ACTION BEFORE THE JOINT COMMITTEE ON THE ECONOMIC REPORT Table Table 1.-Consumers' price index and selected components for selected dates and percentage changes to March 1947. 2.-Wholesale price indexes for selected dates and percentage changes to March 1947. Table 3.-Wholesale price indexes, August 1939, June 1946, and March 1947, and percentage changes to March 1947. Table 4.-Indexes of income payments and of salaries and wages, seasonally adjusted, for selected quarters and percentage changes to first quarter of 1947. Table 5.-Indexes of real income payments and of real salaries and wages, seasonally adjusted, for selected quarters and percentage changes to first quarter 1947. Table 6-Indexes of weekly earnings in nonagricultural industries for selected months and percentage changes to March 1947. Table 7.-Indexes of real weekly earnings in nonagricultural industries for selected months and percentage changes to March 1947. Table 8.-Indexes of hourly earnings of nonagricultural wage earners for selected months and percentage changes to March 1947. Table 9.-Average weekly earnings in nonagricultural establishments, by industry divisions, for selected months and percentage changes to March 1947. Table 10.--Average real weekly earnings in nonagricultural establishments, by industry divisions, for selected months and percentage changes to March 1947. Table 11.-Average hourly earnings in nonagricultural establishments, by industry divisions, for selected months and percentage changes to March 1947. Table 12.-Average net spendable weekly earnings in manufacturing establishments for selected months and percentage changes to March 1947. Table 13.-Average real net spendable weekly earnings in manufacturing establishments for selected months and percentage changes to March 1947. Table 14.-Corporation profits before and after taxes for selected years. Table 15.-Return on net worth, before and after taxes, of 2,500 leading industrial corporations, 1936-39 to 1944. Table 16-Indexes of retail sales, adjusted for seasonal variation, for selected months and percentage changes from peak month to May 1947. Table 17.-Gross national product and components: Annual totals and seasonally adjusted quarterly totals at annual rates. Table 18.-Monthly changes in dollar value of business inventories, September 1945-March 1947. Table 19.-United States export surplus and sources of payment, 1946, and first quarter, 1947. TABLE 4.-Indexes of income payments and of salaries and wages, seasonally adjusted, for selected quarters and percentage changes to first quarter of 1947 TABLE 5.-Indexes of real income payments and of real salaries and wages, seasonally adjusted, for selected quarters and percentage changes to first quarter, 1947 [1935-39=100] Source: U. S. Department of Commerce indexes adjusted for changes in consumers' prices (BLS index). TABLE 6.-Indexes of weekly earnings in nonagricultural industries for selected months and percentage changes to March 1947 |