Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-04-21
Business Moderation,
Labor Forbeuronce
Needed, He Asserts
(Tert OF Speech on Page A.
By Joseph A. Fox
Stor Stoff Corraspondenf

NEW YORK, April 21.-Presi-
dent Truman warned today that
Excessive wholesale prices" are
undermining the prosperity of
the Nation.
Addressing more than 1000 news
paper executives at the annual
luncheon of the Associated Press
at the Waldorf Astoria Hotel, Mr.
Truman asserted that prices must
be brought down if recession is
to be averted and said there must
be:
l. Moderation on the part OF
business"
2. "Forbearance on the part Of
labor" plus greater productivity.
3. "All-out effort on the part OF
the farmer"
4. Wise guidance and action on
the part of the Government"
President Truman arrived by spe-
cial train from Washington at 1927
am. and was greeted at PennSyl-
vania Station by New York City and
Associated Press representatives.
5000 Line Route.
The President entered his car and
rode through a light rain to the
Waldorf Astoria. He was accom-
panied from the train by his per-
sonal chief of staff, Admiral William
D. Leahy.
More than 1000 specially assigned
police guarded the station and route
of the presidential party included
Mr.. Humans military and navai
aides. Maj. Gen. Harry II. Vaughan
and Rear Admiral James H. Foskett:
Presidential Assistant John R. Steel
man, and the Presidents physician,
Brig. Gen. Wallace H. Graham.
Accompanying the party to the
hotel were Acting Mayor Vincent R
Impellitteri. Deputy Mayor John j.
Bennett and Police Commissioner
Arthur w. Wallander Mayor Will
liam ODWyer is vacationing in Cali
fornia.
Record Production is Cited.
Making the first presidential ap-
pearance at the Associated Press
gathering since President Hoover
spoke to the organization in 1929,
Mr.. Truman called on the American
press to bring home to the people
the necessity Tor prompt, preventive
steps" to ward off economic disaster
And injecting new note into his
often-r repeated demand for a check
on the price spiral. the President
asserted that only a prosperous
America can pursue its announced
policy of aiding the free peoples of
the world in their efforts to main
tain their freedoms.
Mr.. Truman, whose talk was car
ried by all radio networks prefaced
his attack on prices by drawing a
picture of record industrial pro-
ductlon and growth in the ma
tional income to $176.000, 100000
which has raised individual pur-
chasing power from 1925 in 1929 to
81 900 today-an increase of 80 per
cent
Against this. however, he cited
such Increases in retail prices as %
per cent for house furnishings. "a
per cent for clothing and 81 per cent
for food.
Rent Alone is Stable.
only rent, because it is under
rent control. has remained practi-
cally stable" he said.
Even more dangerous than the
rise in retail prices is the sharp rise
in wholesale prices since 1915" he
continued. Here are examples
"Textlles-up 80 per cent, farm
products-up 40 per cent; building
materials-up 81 per cent; food
up 50 per cent.
Excessive wholesale prices are
translated inevitably into higher
retail prices. With higher and higher
retail prices. families can buy less
and less. Thus. excessive wholesale
prices are hitting at the foundation
Of our prosperity. for We can be
prosperous only when business &C
tivity is at its maximum
The President also repeated ear
lier warnings that failure of bust
ness to bring down prices would be
Ga 17DJTNE.N No.