Evening star., 1947-07-22
president's Analysis
OF Economic Situation
Lauded by Senators
sy ths Associated Press

President Truman's analysis
,f Americas economic assets
and shortcomings drew general
nraise today from a Republican
md a Democrat on the congress
sional committee seeking an
antidepression formula.
sizing up the Chief Executives
snecial mid-yesr report which cou-
rIed description of "unprece-
dented prosperity" with a call for
greater efforts against imitation.
Senator Flanders, Republican, of
vermont, told reporter:
By and large. it looks like a
GOOD. careful job. I think the most
Important thing the President said
Is that the food price and supply
situation merits the most careful
watching
Food Economy Drive Urged.
"1 am afraid I don't quite agree
with him that there is no ground
for general alarm now. There is.
The President should make an
appeal to the people for strict
economy in the use of food, and not
wait, as he suggests, for real short
ages"
Senator Myers, Democrat, of
Pennsylvania, said Mr.. Truman
has emphasized once again the
necessity for affirmative action to
stabilize our high level of pros
perity on solid foundation"
Declaring he is In full accord"
with the Presidents general recon-
mendations, Senator Myers added
that unfortunately Congress up to
now has given little attention" to
similar proposals contained in Mr.
Truman's first economic report to
Congress last January.
Both Senator Myers and Flanders
are members of the Joint Com
mittee ON the Economic Report. set
up to study White House findings
and make its own soundings.
In the survey he submitted yes
terday, the President urged among
other things that prices be cut and
wages increased where profits are
high. Profits are high, he said, in
~many cases."
While noting that current produc-
ton Is at the record rate of $685.
00o, o,000, 900 a year, Mr.. Truman tenn
pered this with the caution that
another general upward sweep Of
prices could result in "the sharp
recession which it Is every ones
interest to prevent"
The Presidents study will get
close scrutiny when the joint COM
nittee meets in closed session Thurs
day to discuss suggestions on how to
stabilize the economy. These were
submitted to the group during a
series of hearings which ended last
week.
Meanwhile, Chairman Taft of the
Economic Survey Committee, with
held comment on the presidential
document. He said he wants to
give 1t more study and to go over
an analysis being prepared by the
committees staff.
Senator Taft's reaction is awaited
with more than usual interest be-
cause of his disagreement with Mr..
Truman in June over economic
principles.
Seiective Cuts Suggested.
Senator Flanders said he agrees
with Mr.. Truman that prices in
many cases should be cut, but he
adde's it. should be recognized that
reductions have to be made on a
selective basis.
Price cuts by larger companies
could, If deep enough, wipe out
smaller firms" the Vermont Sena-
tor said. The big companies are
aware of this and have to be care
full about it."
Senator Flanders said the whole
price situation emphasizes the i'm
portance of Senate action before
Saturdays scheduled adjournment
on pending legislation to authorize
o special investigation of the jump
In living costs. This proposed in
quiry would supplement the more
general study by the Committee on
tina Economic Ren0rt.