Evening star., 1947-10-25
Text of Trun1onIs Talk on Congress Call

The following is the tert of Presi-.
dent Truman's radio address to the
Nation last night:
have called the Congress to meet
on November II to consider the prob
lens of high prices at home and
emergency aid abroad. These are
questions of vital Importance to all
of us. want to talk to you frankly
tonight about both Of these prob
lens.
Since WI Day, we have moved
steadily toward two goals. We have
sought peace and prosperity-pros-
perity for all our people, peace for
all the world.
AS we measure our progress to-
ward these goals and chart the
course ahead, we find that recent
events have raised new and danger
GUS obstacles in our path. Our do
mestic prosperity is endangered by
hunger and cold in other lands.
These obstacles must be overcome
by prompt and courageous action.
Legislation by the Congress is es-
sential. The need is too pressing
the results Of delay too grave-for
congressional action to wait until the
next regular session in January.
Domestic Dangers.
Let me speak first about our do
mestic prosperity.
In many ways we are now more
prosperous than we have ever been.
More workers have jobs-and at
better wages-than at any time in
the past. Farmers are receiving q
greater share of our national In
come than they have in many years.
Manufacturers and retailers are en-
joying record business and record
earnings. We are producing more
goods for civilian use than ever
before in history.
But these signs of prosperity do
not tell the whole story. Although
production is high, prices are shoot
ing up. Although nearly every one
is employed. many people cannot
afford essential items. Although ma
tional income has reached a new
high, the buying power Of many
people is shrinking.
A few figures-and they are start
ling figures-show how the cost Of
living is going up.
Since the middle of 1916. this Is
what has happened: Clothing prices
have gone up 1s per cent; house
hold furnishings have gone up Is
per cent; food has gone up 40 per
cent. The average for all items is
up % per cent.
And the cost of living is still climb
ing. In the last three months 1t has
climbed at a rate of over Is per
cent year.
/ Wholesale prices are also increas-
ing. Since the middle Of lS46, tex
tiles have gone up 80 per cent;
metals, up IS per cent, and building
materials, up Al per cent. These in
creases in wholesale prices affect
every industry and trade and they
will eventually be reflected in retail
prices.
Income Increases Lag.
For some of our people, the in
creased cost of living has been offset
by increased incomes. But for most
Of our people, increases in income
are falling behind increases in the
cost of living.
Millions of families of low or mod
crate income are already victims Of
imitation. These families are using
up savings. They are mortgaging
; their future by going into debt. They
are doing without things they should
have.
I know the worries OF the bread
winner whose earnings cannot keep
up with the high cost Of living. I
know Of the difficulties Of the house,
wife who tries to stretch the family
income to pay for groceries and
clothes and rent. I know how hard
it is to skilnp, and save, and do with
out.
When so many people are not
sharing fairly in prosperity, the
road is being paved for a recession
or depression.
None Of us can afford to overlook
this danger. Farmers will remem-
ber how they suffered after 1920
because price imitation was follow
ed by a collapse. Businessmen and
bankers will recall how they suffered
after 1929 because wild speculation
was followed by the depression.
Even those who are prosperous TO-
day are prospective victims Of in-
fiation tomorrow.
Imitation must be stopped before
it Is too late.
It is within our power to stop it.
Our economy is basically sound. 1t
has been immensely strengthened in
recent years. The average buying
power of our people today is 40 per
cent higher than 1t was In 1929.
But we are losing some of this gain
as rising prices pull away from in
comes. We can prevent further loss,
and can even go on to new gains,
If we use our economic strength
wisely.
Demand for Available Goods.
The major cause of high prices in
this country Is the great demand
among our own people for available
goods. An attempt has been made
to place the blame upon our foreign
aid program, but this is not borne
out by the facts. During the war,
we learned that we could improve
our standard of living with less than
60 per cent of our output available
for civilian use. At present, even
with current exports to all coun-
tries, a far greater per cent of our
production is available for civilian
use. With sound policies, we can
protect our own standard of living
and carry on substantial foreign
aid program at the same time.
We now have-and will continue
to have-enough food and clothing
and other goods In the United States
to meet our needs. But excessively
high prices mean that these goods
are not being distributed wisely and
fairly. High prices ration the es-
sentials of life by squeezing out the
less fortunate of our citizens. We