GOVERNMENT: Open Floodgates

Last week Federal Reserve Board Member Marriner S. Eccles bluntly told Congress why price & wage controls alone would not stop inflation. The "cheap-money" policy established by Secretary of the Treasury John W. Snyder would prevent it. Any program of controls, Eccles told a joint Senate-House Committee on the Economic Report, "can hardly be adequate to stop inflation in the long run, as long as the money and credit floodgates are left open."

Eccles got strong support from Allan Sproul, president of New York's Federal Reserve Bank.

The root of inflation, Eccles and Sproul agreed, is the vast...

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