Evening star., 1946-01-21
law, have been increasing, causing
difficulties to many businessmen


The present Price Control Act ex-
pires on June 30, 1916. If we ex-
pect to maintain a steady economy
we shall have to maintain price and
rent control for many months to
come. The inflationary pressures
on prices and rents, with relatively
few exceptions. are now at an all
time peak. Unless the Price Con-
troll Act is renewed there will be no
limit to which our price levels would
soar. Our country would face a
national disaster.
I strongly urge that the Congress
now resolve all doubts and as soon
as possible adopt legislation contin-
uing rent and price control in effect
for full year from June 80. l946
If the price line is to be held, If
our people are to be protected
against the inflationary dangers
which confront us, we must do more
than extend the Price Control Act.
Subsidies Depend on Prices.
AS matters stand today food
prices are pressing hard against
the ceilings. The expected decline
in food prices has not occurred, nor
is it likely to occur for many months
to come. This brings me to the
reluctant conclusion that food sub
sides must be continued beyond
June 30, 1946.
The legislation continuing the use
of food subsidies into the new fiscal
year should be tied down specifically
to certain standards. A very proper
requirement, in my opinion, would
be that subsidies be removed as soon
as it is indicated that the cost of
living will decline below the present
levels.
The Second War Powers Act has
recently been extended by the Con-
gress for six months instead OF for
a year. 1t will now expire, unless
further extended, on June 30, 1916
This act is the basis fos priority and
inventory controls governing the use
Of scarce materials, as well as fol-
other powers essential to orderly re.
conversion.
I, therefore, urge the Congress
soon to extend the Second Wal
Powers Act. We cannot afford tc
wait until just before the act expires
next June. To wait would cause the
controls to break down in a short
time, and would hamper our produc-
ton and employment program.
Summarizes Business Problems.
The fundamental approach to the
job OF encouraging small concerns
must be based on:
l. Arrangements for making pri-
vate and public financial resources
available on reasonable terms.
2. Provision of technical advice
and assistance to business as whole
on production, research, and man.
agement problems. This will help
equalize competitive relationships
between large and small companies
for many of the small companies
cannot afford expensive technical
research, accounting, and tax advice
8. Elimination of trade practices
and agreements which reduce com.
petition and discriminate against
new or small enterprises. -
The Federal Government mus
protect legitimate business and con.
sumers from predatory and monop.
olistic practices by the vigilant en-
forcement of regulatory legislation
The program will be designed tt
have a maximum impact upon mo.
nopolistic bottlenecks and unfail
competitive practices hindering ex.
pansion in employment.
But we must do more than break
up trusts and monopolies after they
have begun to strangle competition
We must take positive action tt
foster new. expanding enter
prises.
Wants 65-Cent Basic Wage.
(The President urged Congress tx
amend the Fair Labor Standard.
Act to provide basic wage of 6.
cents an hour with further in.
creases to 10 cents after one veal
and rs cents after two years. HI
estimated these changes would as.
sure full-time workers of a mini.
mum income of 81 800 annually
The farmers Of America generally
are entering the crop year of 194t
in better financial condition thar
ever before. Farm mortgage deb
is the lowest in 80 years. Farmers
savings are the largest in history
Our agricultural plant is in much
better condition than after Worlo
War 7. Farm machinery and sup
plies are expected to be available
in larger volume, and farm labor
problems will be less acute.
The demand for farm products
will continue strong during the
next year or two because domestic
y,,rrot,o q cos VzrS11 1o c,,NyHlnySs anita t,1