Evening star., 1946-06-30
Text of Truman Broadcast on Price Control

Broadcast on P
delaying action on this bill for 50
many months when they knew that
the price control law was going to
expire tomorrow.
Congress Delay Cited.
I am sure that all of you know
Of the efforts which I made to get
the Congress to act on a price con-
troll extension far in advance OF
the date when the old law was going
TO expire. AS far back as Septem-
ber last year, in message to the
Congress, I urged 1t to pass an
extension of the Price Control Act
at an early date. I did not rest
with that message of last Septem-
ber. In later communications to
the Congress. repeated my request
four times to extend price control.
In addition to these direct COM
munications, stated publicly many
times how important it was to our
safety that a price control extern
sion bill should be passed right
away.
But could not persuade the Con-
gress to act. Instead. just two days
before the expiration of all price
control this impossible bill was
sent to me.
In my veto. message to the Con-
gress, which I sent this morning, I
discussed the various provisions of
the bill.
1 do not have time this evening
to comment on all the provisions
of the bill There are many OBJ
jections to it, but my most funda-
mental objection is to the price
raising amendment for manufac-
turers which was introduced BY
Senator Taft.
Balks at Taft Amendment.
Under this amendment there
would be thousands of needless price
increases amounting to many bill
lions of dollars. The Taft amend
ment provides that the manufacture
er shall receive for each article
the profit which he made on that
article in 1941 and that he may
add to the l941 selling price all in
creases in cost which have occurred
since that time. In l941 the manu-
facturer received a much greater
profit out OF each dollar of sales
than at any time in the five pre-
cedmg years or in any of the five
following wartime years. In fact,
profit margins in 194l were so per
cent greater than in the banner
year 1929.
Volume of sales is much greater
today than in l94l, so that manu-
tacturers would have received a
bonanza. In addition, Senator
Taft's fellow Republicans, Senator
Wherry and Representative Craw-
ford, put amendments into the bill
which made sure that not only
would the manufacturers price in
creases be borne by the public but
that such increases would be pyra- :
mlded by generous wholesalers and
retailers markups.
AS you sit in your homes this eve
ming your interest in this bill and
my interest in this bill are exactly
the same. The question is: What
effect would this bill have had on
you-the people of our country.
Ample Profits Desired.
1 believe in the profit system and
desire that profits should be ample
to provide the incentive for full
The Taft amendment.
however. provides for higher prices
and higher profits even where pro-
duction is already going at full
blast and profits are wholly satis-
factory. s4.s,
We have been through five diff
hcuit years. We are looking for
ward to buying the things we nee6
Let us examine this problem to-
gether.
Do you need new low priced au-
tomobile? II so. what effect would
the Taft amendment have had on
Fhe price OF your new car? It would
nave increased Immediately the
prices OF the popular makes of au-
tomobiles by 1925 to $3.50, per car.
Are you a veteran planning to build
a nome for yourself and famjlvoI
The Taft amendment would have
ADDED immediately a minimum of
~ per cent to the cost of your
building materials. The program
recently approved by the Congress
10 provide veterans housing at rea
'onable cost would have been COM
pietely disrupted by this Taft
Are you a housewife who has
been waiting for years for that new
machine or refrigerator?
The Taft amendment would hayr
made 1t cost one-third more right
away.
Clothing Pricess Cited.
Are you faced with the respon-
sibility of clothing your family?
Under the Taft and other amend
rlents the already high clothing
prices would have been increased
Is per cent right away. For clothing
alone the American people would
nave paid at least three billion
dollars more year.
Are you in a business in which
you need to buy steel? The price
Of steel would have gone up under
The Taft amendment between four
and eight dollars per ton right away
Are you a farmer? Under this
bill the price of farm machinery
would have gone up Is per cent
right away.
Those are only a few examples of
the first round of increases the
Taft amendment would bring. But
that Is only the beginning. Price
increases in one industry are cost
increases in another. BY the time
for example, that the automobile
industry had got its Taft increase
based on present costs, it would be
hit by the Taft increases in steel,
tires, safety glass, and other ma
terials. So automobiles would 70 I'D
still more.
Increases Endless.
In this way increase would fol-
low increase. The bill had no stop
ping place in 1t.
In addition, these increases would