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It took the House less than two hours to vote, 306-13, to approve this drastic measure, but in the Senate an unusual alliance of liberal Democrats and conservative Republicans defeated it, after compelling Truman's supporters to admit that if workers refused to return to their jobs, they could be regarded as traitors and court-martialed. Hence, the ultimate penalty, one Republican pointed out, was "death or penitentiary." Even some senators who wanted to curb unions thought that was going too far.
To moderates, Truman appeared impetuous, and the episode badly hurt Democrats looking toward the 1946 election. Unions, the mainstay of Democratic candidates, were furious. R. J. Thomas, national secretary of the Congress of Industrial Organizations' (CIO's) political action committee, strode into his office, removed the picture of the president and himself hanging on the wall by his desk, and dumped it into a wastebasket. "Labor," he declared, "is through with Truman."
The railway melodrama erupted while Truman was plagued by mounting inflation. In January 1946, he had told Congress that he wanted new price control legislation on his desk by April 1. Not until the end of June, as OPA's authority was about to expire, did a bill arrive. It was so dreadfully inadequate that Bowles, who now headed up the Office of Economic Stabilization, submitted his resignation. "Clearly," he said, "I cannot remain here to administer the inflationary bill which Congress...presented for your signature." What was Truman to do? If he signed the measure, he would be expected to constrain inflation without the mechanisms to do so. If he did not sign, all controls would end at midnight June 30; prices would run riot. Truman vetoed the bill.
Just as he had predicted, lifting government controls caused economic havoc, but Congress was only slightly chastened. In the next two weeks, prices rose more than in the previous three years. Within days, wholesale prices for food soared to heights not seen since 1920; grocery items from butter to coffee surged to record peaks. Congress soon enacted a new bill—little, if any, better than the one he had vetoed—but on July 25, "with reluctance," Truman signed it into law.
The blame for this sorry state of affairs might well have fallen on obstructionists in Congress; instead, most of it descended on the president, the result of his exposed position and his inconsistency. Of this interlude, even Truman's sympathetic biographer, Alonzo Hamby, has written: "Truman's performance was terrible. He appeared to have danced around every side of the issue. He was weak, then strong, then weak again." On July 26, Time magazine's Congressional correspondent, Frank McNaughton, wrote in an internal memo, "Harry Truman could not carry Missouri now."
When a cap was reimposed on meat prices, stockmen refused to send their cattle to packinghouses; tens of thousands of butchers across America had to close down. From Albuquerque to Miami, customers in search of meat rioted.
For weeks, the pursuit of red-blooded protein and lamentation about "famine" became national obsessions. "The weird cry for ‘meat,'" wrote Collier's Weekly columnist Tom Stokes afterward, "seemed, as one heard it, to symbolize the desire for all things material." The demand for hamburger, however, reflected more than the greed of spoiled Americans. (In postwar Europe at that very moment, the specter of hunger was all too real.) It also reflected anxiety that the government could not cope. "Come what may," wrote John O'Donnell, political columnist of the New York Daily News, "this battle for the control of Congress will go down in our political history as the meat campaign."
On October 14, scarcely more than three weeks before midterm elections, Truman bit the bullet. Even when his approval rating dropped to 32 percent, he had told reporters that controls were indispensable. On this night, however, speaking to the largest radio audience since the end of the war, Truman lashed out at "the few men in Congress who, in the service of selfish interests, have been determined for some time to wreck price controls no matter what the cost might be to our people." Then he stunned the nation by announcing that he was lifting controls on meat. With the lid off, prices skyrocketed. The New York Daily News headlined: PRICES SOAR, BUYERS SORE/STEERS JUMP OVER THE MOON. Brickbats flew at the president. "Brother," said Ohio's Clarence J. Brown, chair of the Republican Congressional Committee, "the tide is sweepin' our way."


Comments
good article on truman and the economy
Posted by laura on March 12,2009 | 05:55AM