Evening star., 1947-01-08


ID in consumer prices since the
outlined in President Truman's
ay.
program to improve the marketing
and distributing of farm products.
This includes the strengthening Of
research and educational work, as
well as the Improvement of the
various marketing services per-
formed by the Government. We
shall need to give increasing en-
phasis to marketing during the next
few years. Better marketing can
60 a long way toward maintaining
adequate rates of consumption, with
benefit to farmers and the public
alike.
Flexible Program.
We must honor the Governments
commitment to support farm prod
uct prices during the period of re-
adjustment to a stabilized peace
time basis. However, experience
within the past year has demon
strated, on a small scale, some of
the dangers that may result from
holding the support level for any
commodity too high. This only
leads to Embellishments within
agriculture, to the wastage of food,
and to unnecessarily large Govern
ment expense
The Governments long range
program to support farm incomes at
reasonable levels must be kept flex-
ible. It should be designed to en-
courage adjustments Of production
in line with the capacity of mar
kets to take products at price
remunerative to efficient farming.
It should promote well-managed
use Of our vast resources Of farm
land, machinery, and agricultural
labor In such ways as to be profit
able to farmers and of maximum
benefit to the public as a whole.
The standard Of living on farms
depends on more than tiae amount
Of money income received by farm
ers. Farm communities have never
received comparable treatment with
cities in such matters as educa-
ton, housing, medical care. health,
nutrition, and social security. Fed
eral and State programs in these
fields should give increasing atten-
ton to the needs of rural areas.
Power, Flood Control.
Regional development.
Wide regions of this country still
hold the promise of tremendous eco
nornic development. The Govern
ment should examine particularly
the contribution it can make to-
ward this development by stimulate
ing production and distribution Of
low-cost hydroelectric energy, by
developing flood control and naviga-
tion, by improving roads, by enforc-
ing fair competitive rates of trans
portation, by removing barriers to
truck transportation, by land drain
age and irrigation projects. We need
to rebuild crop-lands, grazing areas
and forests. Future programs of re-
source and industrial development
should be prepared so that we can
move ahead rapidly at the appropri-
ate time.
Even under today's full employ
ment conditions, there are q few
chronically depressed areas, and
some areas left stranded by the in
terplay of Nationwide forces and
our Government has the responsi-
bility Of assisting these communi-
ties in developing ways and means
Of improving their positions. The
Council Of Economic Advisers will
give particular attention these prob
lens.
Federa1-aid programs:
The Federal Government is en-
gagged in several programs of grants
in-aid to State and local govern
ments involving large amounts OF
money. Further programs are
planned. These programs, particu-
larly those related to health and
education, public works and road
and airport construction, contribute
greatly toward bringing all sections
of the country up to the levels OF
productivity consistent with Amer
lican standards of living.
I have asked the Council OF Eco
nomic Advisers to cooperate -th
the Bureau of the Budget and other
Federal agencies concerned. AND
with state and local advisory COM
mittees, to undertake a study OF
Federal grants to State and local
governments to determine to what
extent revised standards for the dis
tribution Of these grants may take
into account more fully the needs
for support that exist in various
parts Of the country.
Subject to Adjustment.
/ Public works:
! Aggregate expenditures for public
works are large. They obviously
have a considerable effect upon the
whole economy. Further, since
many public works projects are moi
related to the daily problems o1
business operations nor to the daily
needs of consumers. they are SUBJ
ject to adjustment in their time oi
/ commencement and their rate oa
progress. This had led. particularly
in recent years, to an overemphasis
upon the prospects Of stabilizing ou,
whole economy through the bold use
of public works.
4 There are valid reasons why
public works cannot accomplish al
much toward sterilization as some
have supposed. In the event o1
severe unemployment, they cannot
| be generated in sufficient volume te
avoid experimentation by Other
means. In q period Of mild reces-
sion, they cannot be generated or
time to be fully effective. If thu
tempo of the public works program
i Is geared to some business index