Evening star., 1947-04-21
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t reflected in increasing wage de-
1 mands, with the consequent danger
/ of provoking new inf1ationary
4 spiral.
! Recalling his admonition in Janu-
ary against excessive" wage de-
i mands, and his views expressed at
i the time that some moderate in
i creases were justified, Mr.. Truman
I said that "since then, this counsel
of moderation has generally been
/ followed by wage earners and their
! leaders" with some moderate pay
increases negotiated and others in
/ prospect.
ITO wage earners and their lead
ers I repeat my counsel of modera-
/ tion,' he said. But 1t does not
require much foresight to see that,
If the cost of living does not come
| down, the size of wage demands
might be magnified. Peaceful man
/ agement-labor relations would be
jeopardized. Bitterness and strife
would become harder to avert.
! Fair Solutions Are Difficult.
This is another reason-and a
most compelling one-for bringing
/ prices and the cost of living down
This will help wage negotiations to
! proceed toward peaceful adjust
ments beneficial to all"
After war, and postwar imitation, y
Mr.. Truman continued, "it Is diff
cult to find solutions fair to the
consumer, fair to the worker and
fair to business. Employers and
workers must both give to this task
all their energies, good viii and
understanding of their country S
best interests"
Mr.. Truman reiterated his recent
news conference statement that
profits justify price reductions.
! Profits in the aggregate are
breaking all records, although profit
margins vary greatly in individual
cases. he said. "In 1896 corporate
profits, after taxes. were 80 per cent
higher than in 1945. In the first
quarter of 1947 they ran even higher.
These figures are total figures and
do not, Of course. apply to every in
dustry or every business.
Cites Promises of Price Cuts.
| II do not have to name the par
ticular Industries or the particular
businesses. The men who run them
know exactly which are included
and which are not
| Again, too, the President chal-
ilenged business to make good the
claims that the lifting OF wartime
price controls would bring reduc-
| thing ~ - &O~e".s
/ Our private enterprise system
now has the responsibility for
prices" he emphasized.
! Another aspect of high prices at
which the President hit, was the
fact that because of the level "too
many families are spending their
meager savings and cashing their
War Bonds. They are postponing
necessary medical care. They have
gone into debt in an amount so
per cent greater than a year ago."
Farm Support is Defended.
Mr.. Truman also defended his
administration against charges that
Government-support fer farm prod
ucts was keeping prices up.
OF the major food commodities,
he explained, potatoes are the only
crop now being given Government
support. Pointing out that the sup
port price of what is only $18
bushel, while the current quotation
is about $3.50, and that hogs are
selling at S25 100, as against the
support price of $1450, Mr.. Truman
said that in the absence of Govern
ment support, farmers would not
have planted huge crops, and "the
consequence would have been smaller
acreage. greater excess of demand
over supply and prices much higher
than they are now"
The President also renewed his
argument against lowering taxes in
time of "inf1ationary pressures,"
declaring that any Treasury surplus
should be applied to reduction of
the public debt, and thereby act as
a counter-inflationary force. He
bespoke continuation of rent con-
troll and rigid application of both
export controls and credit controls
by the Government as other factors
to prevent boom and bust"
Alludes to Greek Aid.
President Trumans declaration
that preservation of the American
economic system is prerequisite to
aiding other nations retain their
freedom was patiently based in his
advocacy of help for Greece and
Turkey to prevent Communist in
filtration.
Declaring that the freedom and
integrity of the United States are
safe only in world of free peoples"
the President said many peoples
ARE confronted with the choice be-.
tween totalitarianism and democ-
racy. This decision has been forced
upon them by the devastation of
war which has so impoverished them
that they are easy targets for ex-
ternal pressures and alien ideologies.
by providing economic assistance,
by aiding in the tasks of reconstruc-
ton and rehabilitation, we can
enable these countries to withstand
the forces which so directly threaten
their way of life and, intimately,
our own weIl-being. But we can
provide the necessary assistance
only if We ourselves remain pros
porous"
In urging the cooperation of the
press to bring realization of con-
ditions to the American public Mr..
Truman declared that "the men and
women here today, and the rest of
the press of the Nation, have'a great
opportunity for service at this time.
Not only must the facts be pre-
sented, but there must be brought