Evening star., 1945-09-06
Federal Aid on Jobs
Held Needed During
Period of Transition
fTert of Presidents Message
on Page A-16.)
By J. A. FOX.

President Truman today pre-
dicted "the greatest peacetime
industrial activity" in the history
of the country "if the Congress
and the administration move
vigorously and courageously tc
deal with the economic problems
which peace has created"
In an 18,000-word message to the
newly convened Congress, the Presi-
dent presented his legislative rec
ommendations-including limited
tax reduction-to speed the Nation
from war to peace. He declared
There need be no reason to fear
either the immediate future or the
years that lie ahead of us" if the
issue is faced boldly.
Mr.. Truman emphasized that
principal dependence must be placed
on private enterprise to create the
Jobs needed to insure prosperity
with the Government providing the
supplementary interim help deemed
essential to absorb the idle as in
dustry regears for peacetime pro-
duction
Must Outline Federal Policy.
Along with this, Mr.. Truman said,
there must be assurance of stabil-
ity and consistency in public policy,
so that enterprise can plan better
by knowing what the Government
intends to do
In advocating no more than a
limited tax cut next year, the Chief
Executive said the public must be
reconciled to that because "a total
war effort cannot be liquidated over
night"
Even with the reduced expendi-
lures resulting from the wars end,
Mr.. Truman said, there will be a
deficit of approximately $30,000,-
100000 in the current fiscal year
wnen receipts are estimated at $780,
900 100000 The level of spending
will continue to be high in l947, he
added.
Explaining he had been assured
of early consideration of the matter
by Congress, the President said the
prospective transitional" tax bill
as he termed it, should follow the
lines of the Adjustment Act of 1945
and aim principally at removing
barriers to speedy reconversion and
to the expansion of our peacetime
economy" Later, the tax structure
should be "modernized,' he said.
The President expressed the
opinion that "the largest single op-
portunity for the rapid postwar ex-
pansion of private investment and
employment, lies in the field OF
housing, both urban and rural" say
ing that the country needed a pro-
gram calling for expenditure OF
$1,000 100000 to $1,000, 100000 an
nuafly for the next 10 years.
Urges Housing Legislation.
He urged that Congress early enact
broad and comprehensive housing
legislation" based primarily or
private spending. Proposals pend
ing in Congress appear to me sound
and essential, he SAID.
AS complimentary measure, the
Chief Executive advocated a pro-
gram of useful public works, that
not only would improve the physical
plant of the United States, but also
would provide employment when
private industry cannot do so.
only such public works should
now be undertaken, however, as
will not compete with the use of
materials and manpower by pri-
vate industry" the President said
Reclamation project farms for
veterans was another type of job
aid suggested.
Mr.. Truman set out an eight
point program which he explained
constituted the broad reconversion
policies of the administration, and
accompanied his message with a
supplementary report from Recon-
version Director John w. Snyder
showing what has been done in the
way of reconversion.
Wants War Powers Extended.
This eight-point program incor-
porated the recommendation for
retention of economic controls in
which the administration has been
insistent. Along the same line, the
President asked Congress to extend
beyond December 3 the provisions
of the Second War Powers Act
which covers rationing-and like
wise warned that care should be
exercised in terminating wartime
controls and wartime agencies gen.
orally, SO the process will be orderly
Accompanying the message was .
report from Attorney General CLARK
listing the principal statutes thai
confer wartime powers and set ur
war agencies, with particular refer.
ence to the circumstances under
which each terminates.
1T is the policy of the Govern.
ment not to exercise wartime DOW
ers beyond the point. at which it is
necessary to exercise them," MIR
Truman said.
Similarly, the wartime agencies
OF the Government will not be al
lowed to continue to perform func.
tions not required by present con-
ditions."
Plans Speedy DemobiIization.
He outlined the reconversion pro-
gram as follows:
Il. Demobilize as soon as DOS
siole the armed forces no longe,
needed.
z. Cancel and settle war con-
q tracts as quickly as possible.
3. Clear the war plants so as tc
permit contractors to proceed with
peacetime production.
a. Hold the line on prices ano
rents until fair competition car
operate to prevent imitation and un.
due hardship on consumers.
IS. Hold wages in line where thei,
increase would cause inf1ationar,
price rises. Where price ceilings
tsee TRUMAN. Page A-l8J