Evening star., 1946-02-15

tinued, these strikes could put q
heavy brake on our program"
These work stoppages have contin-
ued and some Of them are serious
enough to threaten our economy
with almost complete paralysis.
They are accompanied by infia-
tionary pressures that also threaten
the stability of our economy.
At such a time, it is necessary for
the Government to bend every effort
to put our economy back to work
to assert control over the forces OF
imitation in the interest of all the
American people, and to remove any
doubt that the Government means
to enforce its program. I call upon
management, labor, farmers-the
American people as a whole-and
their representatives in Congress to
give this effort their unqualified
support.
Review Of Developments.
Let me review some of the recent
developments. Last August I or
nounced a wage-price policy under
which the determination of wages
was returned to free collective oar
gaining within the framework OF
the present rr.ce level. Labor and
management were set free to adjust
wage rates to whatever extent was
possible without raising prices I
urged industry to negotiate wage
adjustments In order to cushion the
reduction in the take-home pay of
millions of American workers result
ing from the loss OF overtime, down.
grading and other factors. 1 en-
phasized that wage adjustments
would have to vary from industry to
industry, or lirm to firm, according
to the merits of each situation.
I had confidently hoped that, as a
result Of free and sincere collective
bargaining, our reconversion pro-
gram would proceed vigorously and
in an orderly fashion. And, indeed,
under this policy many thousands
Of wage adjustments have been
made by mutual agreement without
affecting prices. Nonetheless, COL
lective bargaining has broken down
in many important situations. Sew
eral major strikes are in progress
vitality needed production is tagging
1t Is imperative that production
in great volume be accomplished.
We face real difficulties. Many
workers have found their weekly
pay greatly reduced. Many COM
panies, squeezed between costs and
prices. are not In a position to wait
through q six months period, as
heretofore required, before seeking
price adjustments. This is especially
true in some instances where there
Is complete change from war pro-
duction to civilian production. It
Is likewise true In the case of small
companies which lack the ample re-
serves of many large corporations.
Many small businesses were at a
disadvantage during the war. They
must not be so in peace.
Test Period Abandoned.
I am now modifying our wage
price policy to permit wage increases
within certain limits and to permit
any industry placed in q hardship
position by an approved increase to
seek price adjustments without
waiting until the end of six
months test period, as previously
required.
II the general level of prices is to
remain stable in the next few criti-
cal months, the immediate price re-
lief in such cases must be conserva-
lively appraised. It must, however.
be SUFFICIENT to assure profitable op-
GRAFTON in the test period to an in
dustry not producing at low volume
If the expected improvement in
earnings should fail to materialize
in any industry, OPA will move
to review It's action. Ap-
relief in line with the
modified policy may be accorded, I
where practicable, to individual
firms.
I am authorizing the National