The Waterbury Democrat., 1941-07-30
Threat Of Initiation Hurts Defense Plans
Ccontlnued from Page D

"I am, thereSore, recommending % the congress the adoption of measures to deal with this threat" hEr, Roosevelt said.
 Faced now with the prospect of anilationary price advances, legis- ahtive action can no longer be pru- dently postponed. Our national safety demands that we take steps ats once to extend, clarify an d strengthen the authority of the gov ernment to act in the interests Of the general welfare"
 Specifically, MT. Roosevelt called for authority extending for the duration of the emergency, to: ' 1. Establish ceilings for prices end rents.
 2, Purchase materials and corn- modities when necessary, to assure price stability.
 3. Deal more extensively with excesses in the field of install n1ent credit.
 Wage StabilizatiOn
 Although not requested for inclu- sion in the price control legisla- ton, stabilization of wages was closely integrated in the Presidents message. Such wage stabilization would be achieved first by voluntary cooperation of labor and capital both accepting the responsibility not to prof1teer from the defense emer- gency. Second it would be reached by operations of the national de- fense mediation board and wage stabilization committees, the Prest- dent said.
 T also recognized that we may eX- pect the wholehearted and voluntary cooperation of labor only when 1t has been assured reasonable and stable income in terms of the things money will buy, and equal restraint or sacrifice on the part of all others who participate in the defense pro- gram" the President said. "This means not only reasonable stabil- ization of prices and the cost of living butt he effective taxation of excess profits and purchasing power.
 Tn this way alone can the na- ton be protected from the evil con- sequences of a chaotic struggle for gains which must prove either illus ory or unjust, and which must lead to the disaster of unchecked infla- tion."
 Must Give Wide Power
 MT. Roosevelt emphasized, that Congress must give the administra- tion wide powers for price opera tions. But he emphasized that Con- gress could impose basic check on such powers by providing that they terminate within limited time after expiration of the emer- Ggency.
 ITO be effective, such authority must be flexible and subject to exercise through license or regula- tions under expeditous and work able administrative procedures" he said.
 "T'he concept oS @ price ceiling is already familiar to Us as result of our own World War experience. Prices are not fixed or frozen; an upper limit alone is set. Prices may ductuate below this limit, but they cannot go above 1t.
 ITO make ceiling prices effective it will often be necessary, among other things, for the government to increase the available supply Of a commodity by purchases in this country or abroad. Tn other cases, it will be essential to stabilize the market by buying and selling as the exigencieS of price may require
 Rise of Labor Costs .....
 "Of course, there cannot be price stasility if labor costs rise abnor- mally. Labor has far more to gain from price stability than from ab- normal wage increases, for these are likely to be illusory, and quickly overtaken by sharp rises in living costs which fall with particular normal wage increases. For these hardship on the least fortunate of our workers and our old people"
 MT. Roosevelt warned Congress that the facts of today "are fright eningly si milar" to those in 1915 when the price structure started upward finally to go through the roof and end in the dehation which brought the great economic depres- sion which ushered in the New Deal.
 We face imitation, unless we act decisively and without delay" the president said. '"The consequences of imitation are well known. We
 Producers, unable to determine what their costs will be hesitate to enter into defense contracts or otherwise to commit themselves to ventures whose outcome they can not foresee. The whole production machinery falters.
 "Speculators anticipating success sive price advances, withhold com modities for essential military pro- duction.
 Public Debt Goes Up
 Costs to the government increase and with 1t the public debt.