The Question Of Governmental Oil Import Restrictions

How is the Government's oil import control program doing? In July 1954 Mr, Eisenhower established the Cabinet Committee on Energy Supplies and Resources Policy. On July 29, 1957, the Administration imposed "voluntary" company oil import quotas on American oil importers to maintain "a healthy domestic (oil) production industry" and safeguard "national security." On March 10, 1959 the President by proclamation made the voluntary program mandatory. But study of the program in practice shows that it is not working out as expected and-that there is some doubt that its aims and other related Administration purposes are being achieved. Take the Administration's anti-inflation policy. To be sure, the President apparently recognized in his March 10th proclamation that in restricting cheap imported oil in favor of more expensive-domestic oil he was making the inflation fight that much harder, for he called for Government surveillance of domestic oil prices to prevent them from getting out of hard, And indeed while domestic crude oil prices have not risen appreciably during 1959 neither have they fallen appreciably (although there has been some price weakness in the past few weeks).