Evening star., 1947-01-08

TREND IN CONSUMER PRICES
ment figures indicates the trel
outbreak of World War II, as
economic report to Congress tod
The whole history of America In
dicates that this progress can be
entrusted mainly to the initiative
and inventiveneSs within our busi-
ness system. But we do need ma
tion-wide concerted action to re-
move the fear that demand will
periodically be inadequate to absorb
maximum production. This is what
puts brakes upon inventiveness and
initiative.
How Government Can Help.
Even In times of prosperity, aside
from war. a substantial portion OF
our productive facilities has been
idle. Recurrent depressions have
brought paralysis to as much as
one-third or even one-half of our
plants and machines.
While the Government has a
function in the encouragement OF
new industries and the development
of research, the greatest incentive
that the Government can provide
for business productivity is through
helping to prevent depressions. II
production incentives are adequate,
business will expand without hesi-
fancy when markets for its prod
ucts are reasonably assured through
successful Nationwide program
for continuous maximum employ
merit. production. and purchasing
power.
Agriculture.
The soil is one Of the most val
liable economic assets of the Ma
ton. Most effective utilization and
conservation of this resource should
be an important aim of the agri-
cultural program of the Govern
ment.
We have experienced amazing
chronological progress in agricul-
ture and further progress is to be
expected. This progress necessi-
tates adjustments in farming, ad-
justments in the processing and
manufacture of foods and clothing,
and in the process of distribution
For Family y-Sized Farms
American agriculture suffered
severe depression in the years fol-
lowing the first World War. This
situation was generally recognized
by all groups. It resulted in large
scale governmental programs tc
help the farmer get incomes more
nearly in line with the incomes
of other groups.
The long-range agricultural policy
of the Government should be aimed
at preserving the family sized farm
and preventing another agricultural
depression as we 60 through ,he re-
adjustments following the second
World War. 1t should help to see
that farmers income. do not fall
below those earned by other ccm-
parable productive groups. This
should involve the least possible
interference in the management ot
actual farming operations. II
should be accomplished without use
of subsidies so far as feasible. We
should seek to make it possible fol
farmers to earn good incomes
through their own efforts.
Above all, the long-range agri-
cultural policy of the Government
should be based upon the principle
of plenty and not upon the en-.
couragement of scarcity. The tern
maximum production" in the En-
ployment Act applies to the farm
as well as to the factory. Thi.
basic policy is inconsistent with 9
policy of production restriction
though we must take a realistic view
of the proportion that agriculture
as whole bears to the economy
and also of the relative amount o1
effort devoted to the several lie.
of production. Our domestic capac.
ity to absorb the products of oul
farms-if farmers are encouraged
to turn their productive efforts II
the right directions-will be enor.
nous as we get nearer to solving tn,
problems of sustained employment
and high purchasing power. How
much Of an export surplus from tn,
United States the markets oftth,
world will be able to absorb vii
depend in part on our internationa
economic policies, notably as to in
dustrial imports and overseas in
vestments.
Increased Production.
Agricultural production increaset
more than 80 per cent during tn,
war. archaeological improvement
| in farming and In food distribution
would make 1t possible not only t,
continue this high rate Of produc
ton, but also to increase it sub
stantially during the next few years
The high rate Of agricultural FRO
duction during and since the wa
has been supported by UNUSUAL.
nigh rates Of food and fiber con
sumption. For the satisfactory so
luton of. our agricultural problem
during the next several years it i
essential that we maintain thes'
high rates of consumption, or ever
increase them. This is desirable
not only from the farmers point o
view, but from the point of viey
of American diets and standards o
living.
The Congress has recently au
thorized q permanent school -luncl
program in cooperation with tn
States. i hope this program vii
be extended until we are sure tina
every American school child get
an adequate diet. In addition, w
should study carefully the possible
need for food and nutrition pro
grams to reach low-income families
| The Congress also recently au
IA rrk1s "A