Evening star., 1947-11-17

Oh living Cdu NC DTOuSut anu uc1o
in reasonable relationship to the
incomes of the people, wage adjust
ments through collective bargaining
will be consistent with productivity
ana will avoid an inflationary round
of wage increases.
Rent Rated Next to Food.
Next to food. the most important
element in the cost of living is rent.
Under the modified rent control 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. Thefrent-control law should
be extended and the weaknesses in
the present law should be corrected.
I am well aware that some OF my
proposals are drastic measures. No
one regrets more than I the neces-
sity of considering their use. But
If We face the facts squarely, 1t Is
apparent that no other methods can
safely be counted upon to protect
our people from the dangers of ex-
cessively high prices and ruinous In
fation.
The American people want ade-
ouate protection from these dangers
and they are entitled to it. 1t should
not be denied them. Nor should
they be mislead with half measures.
Even with the authority to i'm
nose price ceilings, the Government
will intensity its efforts to obtain
voluntary action. Wherever volun-
tary action will do the job there will
be no necessity to impose the Gov
ernments authority. But the very
existence of these powers should
have a salutary effect. They will
demonstrate to each of our citizens
the Importance of carefully weighing
each step that might lead to higher
prices. They will support expanded
and more specific efforts to obtain
voluntary action by business men,
labor leaders, farmers and con-
sumers to hold prices down.
All the actions I have described
are essential to a fair and effective
anti-inflation program. I look upon
them as short-run insurance against
the impairment of our prosperity
and the threat to our future develop
ment.
Raises Question.
We should all ponder these ques-
tions:
What would it avail the farmer,
in the long run, if farm prices
should 60 substantially higher only
to be followed by disaster such as
occurred after the first World War?
What would it avail the worker, in
the long run, to obtain inflationary
wage increases, If they were fol-
lowed by repetition of the bitter
experience when Is million workers
were out of jobs?
What would it avail the business
man to have record breaking profits
soar even higher, if they were fol-
lowed by depression which would
imperil our whole system of enter
prise?
The program which I have out
lined is one designed to meet the ex-
isting emergencies of imitation and
exorbitant price levels. 1t is an
emergency program which should be
adopted to protect our standard of
living for the immediate present and
to make possible economic security
in the future.
Asks Plans for Future.
But a program designed to meet
crisis cannot by itself be pro-
gram designed to build for the
future. We must also make plans
to prevent future difficulty of the
same nature.
Our long-range programs must
stress ever increasing production.
To accomplish this for agriculture,
we need comprehensive farm pro-
gram. We shall need programs to
increase the use of farm products
by industry and consumers in this
country when other countries be-
come more nearly self-sufficient.
Long-range national measures will
be needed to protect the farm pop
ulation against ruinous deflation in
farm production and prices.
To expand industrial output, we
need long-range program to over
come basic shortages in capacity
and equipment To provide markets
for increased output of farm and
factory, we shall need long-range
programs to raise the standard of
living particularly for families of
low income.
But the first step toward this
progress in the future is to deal with
the critical present. We must win
the battle against imitation, SO that
our long-range efforts may start
from high levels of prosperity and
not from the depths of depression.
Summarizes Program.
In summary, the immediate anti
imitation program that recommend
calls for the following legislative
action:
l. To restore consumer credit con-
trolls and to restrain the creation OF
inf1ationary bank credit.
2. To authorize the regulation OF
speculative trading on the commod-
ity exchanges.
3. To extend and strengthen ex-
port controls.
4. To extend authority to allocate
transportation facilities and equip
ment.
5. To authorize measures which
will induce the marketing of live
stock and poultry at weights and
grades that represent the most eff
cient utilization of grain.
6. To enable the Department of
Agriculture to expand its program
of encouraging conservation prac-
tices in this country, and to author
ize measures designed to increase
the production of foods in foreign
countries.
7. To authorize ALLEGATION and in
ventory control of scarce commodi-
ties which basically affect the cost
of living or industrial production.
8. To extend and strengthen rent
control.
70. To authorize consumer ration
ing on products in short supply