Imperial Valley press., 1942-09-07
FR Asks Congress
Action by Oct. I

which will become smaller and
Smaller-continual threatens to
disrupt our whole price structure
While it is still the policy of the
government to encourage free col
lective bargaining between employ
ers and workers" Mr.. Roosevelt
said that in times of danger to
our economy" the government must
step in and see that the process
es of collective bargaining and ar
bitration and conciliation are not
permitted to break W the balances
between the different economic fac
tors in our system"
He said that prices and rents
should not be allowed to advance
so drastically ahead of wage rates
that the real wages of workers as
OF today-their ability TO buy food
and clothing and medical care
will be cut down"
For if the cost of living goes
UP as fast as it is threatening to
dp in the immediate future. it
will be unjust. in fact impossible.
to deny workers rises in wages
which would meet at least a part
of that increase"
Thus Mr.. Roosevelt indicated that
his wage policy will be somewhat
flexible and that the war labor
board will continue to have primary
responsibility for carrying out the
wage stabilization program.
The President renewed his plea
for an individual net income lim-
itation of s25,000 which he request
ed last April This has not been
incorporated into the revenue bill
now before the Senate Finance
committee.
In the higher income brackets"
he said, the tax rate should be
such as to give the practical equiv
alent of top limit on an indivi-
dual's net income after taxes ap-
proximating s25O00."
We can rightfully expect the
fullest cooperation and self-re-
straint of the whole nation
required to stabilize the cost of
living" he said. only if the tax
burden is being fairly levied in
accordance with ability to pay"
1T means that We must recapture
through taxation all wartime prof
its that are not necessary to main
tain all-out war production. Such
provisions will give assurance that
the sacrifices required by war are
being equitably shared"
The President also called for
elimination of the tax exemption
of interest on state and local Sc
curities, and other special privil-
eges or loopholes in our tax law.
I'VE are fighting a war of sur
vival." he said. Nothing can yield
to the overall necessity of winning
this war. and the winning of the
war will be imperiled by a runaway
domestic economy"
Tracing the efforts to date of
the government to control prices.
the President reported thaf the
cost of all food. controlled and
uncontrolled. has been going up at
a rate of l Ia per cent a month
since the original price ceilings
were set last May
IF this rise should be permitted
to continue" he said, the increas-
ed cost of food to wage earners
next May would be more than Is
per cent over the level which eX-
listed when the ceilings were set "
Mr.. Roosevelt said that such an
increase would be the equivalent
Of IS per cent sales tax on food,
and that the drastic rate OF in
crease was caused chiefly by the
fact that a number of food COM
modities are exempt under existing
law"
He pointed out that the cost of
such uncontrolled food has been
going up at an average of IA
per cent a month since Mag l, this
spiral constituting IAN immediate
threat TO the whole price structure,
to the entire cost of living, and to
any attempt to stabilize wages"
The President said that prices re-
ceived by farmers have risen by 85
percent since the outbreak OF war
in September. 1889, and gave soma
specific examples of how uncon-
trolled food prices have advanced
sharply in recent weeks.