THE ECONOMY: Stalled Autos

Hardly was the ink dry on Harry Truman's national emergency proclamation (see NATIONAL AFFAIRS) when Economic Stabilizer Alan Valentine cracked down on the auto industry. He ordered new car prices rolled back to the Dec. 1 level—and kept there for at least three months. After the Government had studied the situation carefully, the price structure would be reviewed to see if the auto companies were entitled to the increases they had tried to put into effect.

The order was a direct slap at General Motors and Ford, which only a week before had turned down Valentine's request to suspend their...

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