The Wilmington morning star., 1947-01-07

must be supplemented by positive
measures of aid to new enter
prises. Government assistance, re-
search programs, and credit
powers should be designed and
used to promote the growth Of new
firms and new industries. Assist
ance to small business is partic-
ularly important at this time when
thousands Of veterans who are
potential business and industrial
leaders are beginning tn e
careers.
We should also give special at
tention to the decentralization of
industry and the development Of
areas that are nov under-indus-
trialized.
The third major policy is also of
great Importance to the national
economy-an aggressive program
to encourage home construction.
The first federal program to re-
lleve the veterans housing short
age was announced in February,
1916. In 1916 one million family
housing units have been put under
construction and more than 665, 600
units have already been complet-
ed. The rate of expansion in con-
struction has broken all records.
In the coming year the number
of dwelling units built will ap-
proach, if not surpass. the top con-
struction year Of 1926. The pri-
mary responsibility to deliver
housing at reasonable prices that
veterans can afford rests with pri-
vate industry and labor. The gov
eminent will continue to expedite
the flow of key building materials,
to limit non-residential construc-
tion, and to give financial support
where it will do the most good.
Measures to stimulate rental hous-
ing and new types of housing con-
struction will receive special en-
phasis.
To reach our long-range goal O.
adequate housing for all our peo-
pie, comprehensive housing legis-
lation is urgently required, similar
to the non-partisan bill passed by
the Senate last year. At a mini
mum, such legislation should open
the way for rebuilding the blighted
areas of u cities and should
establish positive incentives for
the investment of billion of dollars
Of private capital in large-scale
rental housing projects. 1t should
provide for the Improvement o.
housing in rural areas and for the
construction, over a four-yea1
period, of half a million units O.
public loW-rental housing. 1t should
authorize a single peacetime fed
eral housing agency to assure eff
ficient use of our resources on the
vast housing front.
Fiscal Affairs
The fourth major policy has te
do with balancing the budget. Ir
a prosperous period such as the
present one. the budget of the
federal government should be bal
anced. Prudent management o.
public finance requires that we be-
gin the process of reducing the
debt. The budget which l shall
submit to you this week has q
small margin of surplus. In the
budget message, I am making rec
concentrations which, if accepted
will result in a substantially larger
surplus which should be applied te
debt retirement. One of these rec
concentrations is that the Con.
gress take early action to continue
throughout the next fiscal year the
war excise tax rates which, under
the present law, will expedite on
June 80, 1947.
Expenditures relating to the war
are still high. Considerable sums
are required to alleviate world
famine and suffering. Aid to vet
Grams will continue at a peak level.
The world situation is such that
large military expenditures are re-
quired. Interest on the public debt
and certain other costs are ire
ducible. For these reasons l have
had to practice stringent economy
in preparing the budget; and
hope that the Congress will CO.
operate in this program OF econ
omy.
Agriculture
The fifth major policy has to do
with the welfare of our Farm pop
ulation.
Production of food reached rec
ord heights in 1916. Much of our
tremendous grain crop can read
lily be sold abroad and thus will
become no threat in u domestic
markets. But in the next few
years American agriculture can
face the same dangers it did after
World War I. In the early tWen-
ties the nation failed to maintain
outlets for the new productive
capacity of III agricultural plant.
It failed to provide means to pro-
tect the farmer while he adjusted
his acreage to peacetime de-
mands.
The result we all remember too
well. Farm production stayed up
while demand and prices fell, in
contrast will industry where
prices stayed up and output de-
clined. farm SURPRISES piled up,
and disaster followed.
We must make sure OF meeting
the problems which we failed to
meet after the First World war