Evening star., 1946-10-03
SteeImun
Continued From First Page.)

view of the marked advances of
cotton prices" emphasizing the
danger that prices of cotton cloth
and apparel may get out of reach
of the average consumer" who, he
said, already is having trouble find
ing moderate priced clothing.
Mr.. Steelman said the start of
the second year of peace finds the
country. in a promising position,
with $1,000 900. people employed
an an-tinne record; only 1000, 0,000
jobless; national income at -$167 :
600, ,O00, 600 annually-another record
and the public spending SIZE. .000,-
100000 for. consumer goods and
services, with demand exceeding
supply.
Opposes Uncontrolled Prices.
However, he continued, "our satis-
faction in achievement to date must
be tempered Sy the knowledge thai
the present. level of production and
employment has been the product
in part of delayed demand, backed
by wartime savings, and is not nee
essarily permanent.
There is danger, he said, that un-
less prices can be stabilized, demand
and supply cannot be brought into
approximate balance, except on a
much lower level of income and pro-
duction.
Some have suggested that the
best way TO balance supply with
demand is to let prices co." Mr.
Steelman continued. ,"An uncon-
trolled advance in the general level
Of prices is the worst possible way
to bring demand into balance with
supply"
If consumer or business spending
should falter for any cause, the Gov
ernment should be prepared to take
up the slack, Director Steelman said,
adding that resumption of needed
construction activities by Federal
agencies would be an important
measure to increase total wage and
salary payments and stimulate bus
mess investment" He urged, in this
connection, that public works
which the Government has cut down
should be blueprinted and ready
to CO."
He stressed however that 'the
first and most salutary action to
arrest a decline should be taken by
business itself in reducing prices
wherever possible-without reducing
wages"
There can be no doubt" the
report said, that in some industries
the profit position is such that prices
could be reduced and profits still
maintained at satisfactory level
This will be even more true In the
coming year as volume increases
and unit costs come down."
Discussing wages, the report said
that, despite the increase in rates
and hourly earnings in recent
months, the gross weekly earnings
of industrial employees have declined
approximately S.5 per cent between
April, 1s45, and July, 1916, owing to
a shorter work week, elimination of
overtime and shifts in employment
from war to peacetime industries.
On a dollar and cents basis, it
was explained, this means a reduc-
ton in weekly earnings of $4.05, to
an average level of $43.07.
Coupled with this was a thinly
veiled warning against strikes for
higher pay.
This downward trend in real
wages should and will be reversed, :"
the report said. "Basically, the only
cure lies in the output of more fin
ished goods and services. Any sig
nificant decline in production, how
ever caused, must necessarily reduce
real wages OF the workers of this
country, and a general round of
large wage increases now can bene-
fit only special groups, and in gen.
eral, will do SO at the expenses of
fellow-workers throughout the Ma
fiaY,