The Wilmington morning star., 1946-06-30

present bill should become law, l
urge the congress with all the
earnestness at my command to
reconsider the whole problem Of
sterilization.
In that reconsideration, let us
see just where we stand today.
Under the existing sterilization
laws production has recovered re-
markedly from the shock of wars
end. Output of civilian goods al
ready surpasses the 1941 level and
employment exceeds that level by
six million. This record has been
achieved in spite Of shortages Of
critical materials and parts and
in spite of extended work stoppoges
in basic industries. The major
acknowledgement disputes are
settled, and we are moving rapidly
toward the realization of Dull post
war detectives of full production
and full employment in a sound
economy.
There still are shortages. but
they will be progressively wiped
out in the months ahead if bust
ness and labor stick to their job
of producing the most possible
goods in the shortest possible time.
This can happen only if business
has assurance of reasonable stabi-
lily in its costs and if labor has
assurance that it's real wages
will not be cut sharply by rising
living costs.
Sees Steady Easing
We can look ahead to a steady
easing of other inflationary forces,
The efficiency of production is
bound TO increase and bring with
it an upsurge in total output. Il
the sterilization laws are renewed
in effective form, it is expected
that the federal budget will be
balanced during the coming year,
thus eliminating the deficit which
was a basic source of inflationary
difficulties.
AS the inflationary p~ressures
lessen, commodity after commodi.
ty can be removed from controls
and we can emerge with a stable
economy in which the traditional
American free enterprise COM
petitive system can take command.
Not until then will the law of
supply and demand keep prices
at reasonable levels. So long as
demand far exceeds supply, the
law of supply and demand will
drive prices up.
Let us remember further that
initiation and collapse in the United
States would gravely ~jeopardize
our efforts to build the kind of
international economic relations
that will provide a solid basis tor
world peace. The whole structure
of international prices, currency
values, and financial and trade
relations is still unsettled. Because
of our position and influence in
world trade and finance, initiation
and collapse in this country would
shake the entire world.
In short, the mos. serious diff
ficulties of the transition from
wal to peace VI already be-
hind us If only we have the
wisdom and fortitude to see to
it that the forces of initiation,
so long held in check, are not
unleashed when victory Is all
but won.
Therefore I call upon the
Congress to act and act now
by passing a bill which will
give the nation adequate as
of completing a sue
cessful transition to a sound
peacetime economy. Such a
bill should contain the follow
ing provisions:
First. The bill should provide
for extension Of the stabiliza-
ton laws for a full year.
Second. The bill should auth
orize the continuance Of stab
ilization subsidies on a scale
sufficient to avoid serious in
creases in food prices during
the next six months and to per-
nit the orderly termination Of
subsidies during the first half
of 1947. In my judgment. an
authorization for the expendi-
ture of a billion and a quarter
dollars during the year as a
whole is the minimum neces-
sary for these purposes.
Third. The bill should lay
down a congressional policy
with respect to the termination
Of price controls and subsidies.
/ approve the provision of
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