Evening star., 1945-01-09

her than goods and services.
financial institutions NAV DESTROY
purchasing power and create un-
employment. But the use of pro-
gressive taxes for the REDEMPTION of
bonds held by millions of individual
savers may have a stabilizinp in
f1uence on incomes and EMPLOYMENT,
l favor a policy of orderly but steady
debt reduction, consistent with the
obJectives Of long-run economic pol
Icy. The mistakes in debt manage
ment and tax policy after the last
war should not be repeated.
Reconversion Dependant
On Progress of War
AS long as We are at war-at war
against two powerful enemies or
against only one of them-we will
give unqualified priority to all war
production and to all manpower
needs of war Nevertheless. some
reconversion of war industries NAV
become possible, dependent on the
PoSIcSS VI the war.
The foundation for dealing with
the main reconversion problems has
been laid by the Contract Settle
ment Act. the Surplus Property Act,
and the War Mobilization and Re-
conversion Act: the machinery for
the administration of these acts is
oelng put In operation. Still. a great
many problems remain to be solved
II we are to be ready for successful
reconverslon. We may have a
scarcity OF manpower in certain in
dustrles and regions, while tenn
porary unemployment may develou
IN others. We may have surpluses of
some commodities and a downward
tendency In certain prices, particu-
iariy OF raw materials, while search
ties cause continuing upward pres
sure on other prices.
The human side of reconversion
requires effective organization to
aid each discharged war veteran and
war worker to find his way back
into productive peacetime employ
ment. AS far as veterans are con-
cerned, the basis is laid by the
Servicemen's Readjustment Act. I
have already emphasized the need
to strengthen our social security
program. With respect to the re-
conversion period, I am particularly
concerned over the fact that broad
categories of workers are not COW
cred by present legislation and that
present standards for unemploy-
ment compensation are not ade-
quate in many States. To promote
employment opportunities and to
assure the proper occupational ad-
Justment of returning veterans and
war workers, strong, integrated
system of public employment Offices
is basic necessity.
We can best accomplish this OBJ
jective by the establishment, through
permanent legislation, of an effective
national employment service with
adequate coverage throughout the
Nation. For the reconversion period
we should provide assistance for
travel and retraining of war work
ers.
We must also see to it that our
administrative machinery for the
adjustment of labor disputes is
ready for the strains of the recon-
version period. We must apply some
of our wartime lessons in labor
management cooperation in work
ing out sound long-range labor
policy supplemented by permanent
mediation machinery for the ad-
justment of labor disputes.
Surplus Property Sales
Can Aid Production Needs
The material side of reconversion
should also be conducted with a
view toward the long-range objec-
tives of economic policy. Surplus
property disposal should contribute
to filling the needs of production
domestic and foreign. 1t should be
carried on with full recognition OF
the objectives of price stability.
Every effort should be made to
achieve full civilian use of plants
built for war purposes when they
are no longer needed for war pro-
duction and to facilitate their rapid
transfer to private industry for pro-
ductive use. If prompt transfers OF
ownership cannot be made, tempo
rary lease arrangements may facil-
itate early productive use while
permanent arrangements for trans
fer are being worked out.
Statistical information concerning
business activities and markets, en-
ployment and unemployment, In
comes, expenditures and savings Is
urgently needed as a guide for eco
nomic policies during the remainder
OF the war and during the recon-
version and postwar periods.
recommended appropriations for
this purpose to the last Congress
l shall transmit recommendations in
the near future for those essential
parts Of the program on which the
Congress took no action. Business,
agriculture, labor and the Govern
ment need to know the basic eco
nomic facts, If each is to play its role
with maximum effectiveness during
the months and years ahead.
As the war progresses, we must
hasten our plans to secure world
wide economic cooperation in both
the transition period and the post
war period. We have learned that
just as the United States cannot
afford to be isolationist in its po-
litical philosophy, neither can Il
stand the malignant effects of eco
nomic isolationism.
international Monetary
Cooperation Essential
Last July the United Nation.
Monetary and Financial Confer.
ence formulated articles Of agree.
ment for the establishment OF a.
|