Evening star., 1947-11-17
Congress

occasion.
Congress
Continued From First Page.)
food and clothing items not in short
supply or for delicacies or luxuries.
The same selective principle, he con-
tinued, would apply to industrial
items.
This same selective treatment
of a relatively few danger spots
is very different from an overall
wartime price control" he said.
While the President expressed
belief that a fair distribution of
shortage commodities could be ac-
complished without consumer ra-
tioning. he warned that mo one
can foretell exactly how serious
some shortages may become next
year"
Rationing Needs Preparation.
Adequate protection from high
prices and unfair distribution can be
assured only by establishing author
ity for price ceilings and rationing
in fields of critical Importance" the
President continued. 1T takes sew
eral months to set up an organiza-
ton and make the administrative
arrangements necessary to put price
control and rationing into effect.
Thus, the only prudent course is to
establish the authority at this time
so the necessary preparations can
be started. If we fail to prepare
and disaster results from our un-
preparedness, we will have gambled
with our national safty-and lost. F"
Backing up the proposed price
rationing program, the President
said that wage controls should be
established if other steps are taken
IF the Government imposes price
ceilings covering a specific area of
production, it should in all fairness
have authority, in that same area,
to prevent wage increases which
will make it impossible to maintain
the price ceilings" was his explana-
ton. This authority should be
granted, although I believe that
there would be few occasions for
its use"
Comedies Plans Are Harsh.
Admitting these measures are
harsh, the President said that even
with the authority to impose price
ceilings that "the Government will
intensity its efforts to obtain volun-
tary action" and that wherever
voluntary action will do the job
there will be no necessity to impose
the Governments authority"
The very existence of these pow
ers, he continued-stressing they
will tend to stamp out proflteering
and speculation-"will demonstrate
to each of our citizens the impor-
tance of carefully weighing each
step that might lead to higher
prices"
Tied in with price control and ra-
tioning Is a proposal for extending
rent controls beyond the statutory
expiration date Of February 20.
If we neglect our economic ills
at home" the President warned in
the general portion of his message.
"if we fail to halt the march of
imitation, we may bring on a depres-
sion from which our economic sys-
tenn as we know it might not recover.
And If we turn our backs on Nations
still struggling to recover from the
agony of war and are not yet able
to stand on their own feet. we may
lose for all time the chance to OBJ
tain a world where free peoples
can live in enduring peace" :"
Sets Out Three Approaches.
In amplification of this program,
the President said that there should
be three approaches to the problem
of high prices and imitation.
First, he put at the top the neces-
sity for relieving monetary pressure,
specifying that one way to ac-
complish this good is to restrain
"the excessive use of credit
Emphasizing that consumer credit
is increasing at a disturbing rate"
and now amounts to more than
s11 ,O00, 100000, the President said
the installment buying curbs which
expired November l should be re-
stored.
He also said that the Government
should intensity its efforts to sell
savings bonds to mop up surplus
savings. Calling for the continuation
of export controls, the President
said that the present program
should be strengthened.
Goods that cannot wisely be ex-
ported, he continued, should be
kept at home and "profiteering in
exports must be prevented"
Rental Rates Rising.
On the question of rent controls,
the President said that next to food
the most important element in living
costs is rent and that under the
present law rents are rising at the
rate OF about per cent a month.
"A IL per cent annual increase in
rents imposes an intolerable strain
upon the family budget" the Presi-
dent continued. The rent control
law should be extended and the
weaknesses in the present law
should be corrected"
While the special session of Con-
gress was called to deal primarily
with the collapse in Western Europe,
the President laid major emphasis
in his message on the situation at
home
He told Congress that he would
shortly submit the long range re-
covery program contemplated under
the Marshall plan, and stressed that
this program is the result of the
combined efforts of thoughtful men
of two continents whose concern has
been the most effective manner in
which 16 European nations, Western
Germany and the United States can
work together for European recov-
cry, world prosperity and lasting
peace"
He did not specify the sum to be
n cLod ,,,Scr tho Marshall nfan