Evening star., 1947-04-21

ton, is always coupled with service
The American pressa free press
must never forget Its obligation te
the American people Its treatment
of the recent war and its discussion
OF our present foreign policy are
examples of the finest effort Of q
free, responsible press. Without
abandoning constructive criticism
the press, with rare exceptions. has
carried the facts fully and fairly 70
the American people, so that they
could be the judge
We are now at a stage in our
national economic life when the
American press can render similar
service.
The manner in which the Ameri-
can press makes clear to our citizens
the problems that we face in main
tanning our prosperity-and the
reasons why it is essential to ad-
vance that prosperity-can helr
determine the future welfare Of
every family in the United States
We all want continued and ever
increasing prosperity. 1t is simple
normal, human desire to want tc
improve the standards OF living for
all our people. The desire for better
living conditions is not the only
reason, however, why continued
prosperity In this country is es-
sential.
We know that the freedom and
integrity of the United States are
safe only in world of free peoples
living at peace with their neighbors
and engaging in free and friendly
commerce. Hence, it is our policy
to aid the free peoples of the world
in their efforts to maintain their
freedom.
Aid Abroad Helps Use.
Many of these peoples are con-
fronted with the choice between
totalitarianism and democracy. This
decision has been forced upon them
by the devastation of war which has
so impoverished them that they are
easy targets for external pressures
and alien ideologies.
BY providing economic assistance
by aiding in the tasks of reconstruc-
ton and rehabilitation. we can en-
able these countries to withstand
the forces which so directly threaten
their way of life and, ultimately
our own well-being. But we can
provide the necessary assistance
only If we ourselves remain pros
porous.
7 And only II we maintain and in
crease our prosperity can we expect
other countries to recognize the full
merits of a free economy. We know
that our system Of private competi-
tive enterprise has produced the
highest standard of living the world
has ever seen. BY steadily raising
this standard, we can demonstrate
to all other nations the vitality and
superiority of a free economy. Our
system OF private enterprise is now
being tested before the world. If we
can prove that it is more productive
and more stable, more generous and
more just than any other economic
system, we shall have won the test.
But if we ignore the needs and
shirk the responsibilities of our
economy. we shall lose both our
power to help others and our ca
pacity to inspire others. Economic
trouble in the United States would
provide agitators with the oppor-
.tunity they seek.
It is necessary that we develop q
new realization of the size and
strength OF our economy. Our tre-
mendous production during the war
iastounded the world, T, It was a
phenomenon which no one thought
could endure after hostilities ceased.
Comparison Made With 1929. =
! We are beginning to sense the
fact. however, that our peacetime
economy cannot only equal our war
time economy, but can surpass it.
The progress we have made is
demonstrated by comparing the
present time with the year 1929,
which was the year OF highest eco
nomic activity before the war.
The physical volume Of industrial
production is now II per cent great
er than it was in 1929. This is ac-
tual physical volume. 1t Is not
dollar value.
The physical volume of agricul-
tural production is now 81 per cent
greater.
Civilian employment is now TO-
000, 900 greater,
Our national income-including
individuals and corporations-is now
running at an annual rate of $l76,-
000, 900 900, contrasted with only
$83, 900 100000 in 1929.
Now, what have these great gains
since 1929 meant to all of us?
In 1929 the average income OF
in this country was 1854
after taxes. Today it is $1,000 after
taxes. Expressed in dollars OF equal
power, the increase has
been from 1925 in 1929 to 81 900 to-
day. This means, on the average for
every man, woman and child in the
country, an increase of 80 per cent
in the power to buy goods and SER
vices with current income. This is
the measure of the rise in our stand
ard of living in less than one gen.
Grafton.
Action Needed on Rising Prices.
This is not record of war pro-
duction. 1t is an unparalleled rec
ord for peacetime goods and services,
devoted to the needs and enjoy
ments of the American people.
But I must say in all frankness
that the economic skies are not
entirely clear. One cloud is shadow
ing our economic future
That cloud is caused by the sharp
and rapid rise in prices.
Some say this cloud is certain to
burst. They are sure of recess
sion or a depression. I do not
share their belief that either Of
these is inevitable.
I believe that we, as Nation,
can prevent this economic cloud
burst. But it requires prompt, pre-
ventive steps.
Price increases have been felt by
every American family. No one needs
to tell them how much the cost of
living has increased.
House furnishings. for example.
have gone up % per cent above the