Evening star., 1947-01-08

are needed ana Iney tnen become
infiationary rather than stabilizing
Even If advance preparations are
made through the completion Of
plans, the acquisition Of sites, and
the accumulation Of funds, there
will be an inevitable time lag be-
tween calling the emergency pro-
gram into operation and the en-
ployment of men on the job.
These comments are substantiated
by experience. The chief lesson to
be learned is that no one device
constitutes an adequate safeguard
against recession or an adequate
fighting apparatus against depres-
sion. AL useful devices need to be
thought through in advance and
blended into consistent program.
In Terms Of Needs.
| Instead of regarding public works
as the first and foremost device to
restore our whole economy when 1t
says, we should attempt to stabilize
public works construction according
to our long-term needs. Increasing
regularization of public works ex-
penditures at all levels of govern
mental activity over a long period
will offer an assurance Of q demand
for capital, of a market for materials
and equipment, and of a field for
employment which will assist In
stabflizing that segment Of the busi-
ness world. This approach to public
works will have the further advan-
tage of appraising their size and
character in terms of our total ma
tional needs.
This policy by no means forestalls
the expansion Of public works as q
sustaining factor if recessions or
depressions should unfortunately
develop despite our best efforts to
avoid them. The very procedure
necessary for long-term regularized
expenditure will pave the way for
more effective emergency use than
in the past.
Research Board Set Up.
Research and patents:
The United States will this
year invest more than $1,0o0,-
0o0,000 in research. In order to
protest national security and the
development of the domestic econ
omy, have established by execu-
tive order presidential re-
search board to survey Federal re-
search and development programs.
The continuance Of research pro-
gram Of large magnitude for many
years to come, together with the
fact that many of the inventions
resulting from it will be patentable,
calls for action to protect the public
interest IN inventions and discover
les resulting from expenditures of
public funds. hope that suitable
legislation for q uniform patent
policy will be enacted by the Con-
gress at this session.
3. Encouragement of free enter
prise.
It is imperative that there be no
restrictions on free competition
resulting in curtailment of produc-
ton and employment, or in main
tenance Of high prices, or in inter-
ference with freedom to invest
funds, or in hampering the entry
of new firms to any line of produc-
ton or trade, I recommend that
1 the Congress review the studies
4 made by the Temporary National
Economic Committee and by other
congressional committees with a
! view toward supplementing sor
I strengthening existing legislation in
\ this field. Among the steps to be
taken is the extension Of Section z
kof the Clayton Act to prohibit merg-
/ ers by the, acquisition Of assets, as
well as by the acquisition Of stock
control.
Increase for Antitrust Law.
Enforcement Of existing antitrust
laws:
The Antitrust Division of the
Department Of Justice and the Fed
eral Trade Commission have both
labored under inadequate appropri-
ations. They should be better
supplied with funds so that their
activities can be more closely in
tegrated. Accordingly, I am recon-
mending in the budget message
increased appropriations for the
control of monopolistic practices.
Encouragement of small business:
The Government should take af-
firmative action to enlarge the op-
portunities for efficient and enter
prising small businesses.
I believe that the Government
should study ways and mems of
facilitating the availability of long
term credit and equity capital to
small and promising business en-
terprises.
The Department of Commerce
has developed, and will further de-
velop. business service programs
providing businessmen with such
information on markets and tech
nical and commercial facts as only
large establishments can provide by
their own stats.
Consideration should be given to
the impact which existing taxes
have upon small and growing busi-
nesses.
Welfare and Economy.
4. Promoting welfare, health and
security.
There are certain programs of
Government which have come to be
looked upon as welfare programs"
in a narrow sense. This has placed
them in an insulated compartment.
They have not been sufficiently re-
lated to the needs of the economy
as whole. In fact, they are a
! part of the problem Of maximum
employment, production, and pur-
chasing power.
The Employment Act presents the
opportunity to abandon this irsu-
. lation, and to put these programs
back in the economic setting from
which they must draw their sus-
! tenance.
il Unemployment insurance is de-
signed to take care of the unem-
ployed as a matter Of right rather
i than Of charity, but IL also pro-
|, vides purchasing power as cushion
|; against recessions, and its tax fea-
lures are Of general economic sig
niflcance. Retirement and pension
systems exist to take care Of work.
ers who have given Of their years