Evening star., 1947-01-08

terlaIS. we DO not nave 70 lear Sos
called foreign competition when we
have maximum production, en-
and purchasing power.
We must not, of course, indulge in
indiscriminate reduction OF barriers
to imports. Such a policy is not
contemplated.
To Increase Markets.
For q few years we cannot ex-
pect to buy as mucn from abroad
as other countries buy from lis. We
will find it profitable to invest .
part of our savings in developing
the worlds productive. resources
through 4 sound loans and invest .
znents ssof equity capital abroad.
This Is important not only in the
first instance as an immediate out
let for our goods and services, the
supply of which will be increasing
in the coming years, but also as q
means of permanently increasing
foreign markets for our farmers and
businessmen The quickest demon
stration Of this can be seen by the
fact that nations that are indus
trialized are our best customers.
Many countries fear. economic de-.
preston In the United States as q
threat to their own stability. If
faced with the alternatives of
smaller trade and economic insu-
lation on the one hand or close
relations with an unstable Ameri-
can economy on the other, many
might prefer some insulation as the
lesser evil. ss......t 2
In preference to either Of these
alternatives. these countries would
choose closer relations with stable
American economy operating at.
high levels. They have already be-
gun to cooperate toward achieving
these related goals: Economic
stability and expansion of world
trade. The International Monetary
Fund, designed to stabilize ex-..
change rates, and the International
Bank for Reconstruction and De-
yelopment, set up to facilitate the
international flow of capital, have
already started to operate. At our
initiative, experts of IL important
governments recently worked out q
tentative charter for an interna-
ttonal trade organization.
Effort of Cooperation. i
This charter embodics principles
of commercial conducy designed to
enlarge the beneficial flow of world
trade, to reinforce the domestic
employment and development pro-
grams of the cooperative govern
ments and, by intergoyernmental
commodity agreements, to remove
the depressing effects Of BURDEN
some world surpluses This charter
represents the first major effort
in the field of trade to replace
unilateral action-which often in
jured other countries and provoked
retaliation-by cooperation, and
joint action under set of common
principles. Continued progress in
the formation of the international
trade organization represents the
most important step that we can
take to re-establish high volume
Of foreign trade on sound basis.
The willingness of many other
countries to enter the proposed
trade organization will depend to
a great extent on our attitude in
connection with the reciprocal tariff
negotiations scheduled for this year.
In return for our own tariff conces-
sions, we can hope to secure not
only reduction Of foreign tariffs and
determinations but also elimination
OF a mass of restrictions, in partic-.
ular, rigid import quotas preventing
out access to foreign markets. Thus
we should press forward with our
program to secure the reciprocal
reduction Of trade barriers.
If we fail to do our part in putting
international economic relations on
healthier basis, it Is quite likely
that some other countries will feel
compelled to increase their own
controls. Such a development would
tend to break the world into trading
blocs and could have profound ef-
fects upon world politics and the
prospects for creating an enduring
peace.
Continuing Study.
q ror, ha tive aoo,, oy,,ic oy,difiapc
Only by blending all practicable
programs in wise proportions can
we be successful in stabilizing our
economy at the highest feasible
levels. The long-range policies !
have outlined are designed to
strengthen the structure Of the
/ ecoromy and to reinforce its resist
ance to economic fluctuations.
The greater this power Of resist
ance,. the less need there will be for
some of the limited and specialized
stabilizing devices which have re-
ctlved much attention In recent
years.
I have directed the Council Of
Economic Advisers and the other
appropriate Government agencies
to make a continuing study of the
stabilization devices that may be.
come necessary and to recommend
their being placed III operation IN
ample time to insure the antici--
pated effect. y
| Among these devices are a wellr
integrated program of employment
sterilization; improvements in the
process by which workers find jobS
and employers ind workers; inn
provements in the tax structure;
wise management Of the public
debt; and a flexible credit policy. :
Continuing policy cannot be ex-
temporized from month to month
or even from year to year; most
policies designed to increase the
stability of the economy are OF
long range character. Fortunately,
we have time in which to plan de-
liberately and wisely, and in which
to secure the corporation Of all
our citizens in driving toward cur
C I'M mon goal; an expanding
economy Of maximum productiops
employment, and purchasing power,
under a system of free competitive