Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-12-27
Plan for New Farley
On Fair Wage Backed
By Truman Advisers
by the Asseeictsd Press


Proposals that President Truman
call a new labor management con-
terence, despite the almost total
failure of his 1945 effort, gained
strength today from his Council OF
Economic Advisers.
Collective bargaining might be-
come q greater force for labor peace
and economic stability" the council
said In its annual report, IL there
we're some generally approved
standard of fair wage-related to
q given price structure"
The advisers dwelt at length on
the possibility that second meeting
Of union and industry leaders might
be starting point for agreement on
such standards as q guide in labor
negotiations.
These standards would not be
binding; they would be primarily
International in character" the
economists told Mr.. Truman.
But from them might emerge,
after testing period of time and
experience, a better reasoned and,
therefore, more workable formula
ton Of wage policies to be applied
through collective bargaining"
The report, q torerunner OF Mr..
Humans economic message to Con-
gress due next week, was prepared
by the three-member advisory
council headed by DR.. Edwin G.
Nourse.
Arouses Speculation.
Since the council also supplies
Mr.. Truman with the economic
analysis on which he bases his own
message, the report issued last night
aroused speculation whether the
President is weighing invitations to
q new conference.
The council did not make direct
recommendation. 1t noted that
the first conference, held only three
months after the war, brought few
results"
But the advisers suggested that a
new conference might produce some
agreement If it were carefully
planned.
Public and farm representatives
might also attend, it was suggested.
The council declared its conf
dent" belief that q high-production,
ACKNOWLEDGMENT economy can be
maintained in this country, free
from major booms and depressions.
This can be done without resort to
controls which would weaken pri-
vate enterprise or destroy basic
freedoms of choice" the report con-
tinued.
Remain Perennial Threat.
But it emphasized that ma}or
labor disputes in vital industries
remain a perennial threat" to
stable prosperity.
Whether these are to be settled by
negotiation or by Government in
PREVENTION, the advisers said, there
is need for a pattern Of standards
which would be fair to both parties,
acceptable to the public and con-
sistent with the needs of the whole
economy"
These standards include q wage
structure in relation to prices that
will maintain the producing power
of industry and the buying power Of
labor in sound-proportion," it speci-
fed. !
eff such standards can be de-
veloped and win adherents. the
prospects for voluntary settlements
will become so bright that the need
for compulsion would be rare in
deed" a.
Recommendations Listed.
As in its two previous reports,
the council made few definite policy
recommendations. These were the
major ones:
Extension of Government supports
for farm prices to prevent any agri-
cultural slump which might again,
as in 1920, lead to general business
collapse. THE fact that this sup
port-machinery has not yet been
perfected is not a SUFFICIENT reason
for abandoning it," the report said.
A housing program built on the
deliberate promotion Of easy credit.
while this is infiationary, the council
said, 1t is justified by the seriousness
Of the housing shortage.
Continued support of Government
bond prices by Federal Reserve buy
ing. This too feeds imitation, the
council said, but it would be "reck-
less" to drop the program and thus
possibly create uneasiness about
the National credit" while huge
public debt exists.
The people must expect high Fed
eral budgets "for many years to
come" since they demand military
preparedness. foreign aid and public
works, the report said, and added
that the Government must use this
vast spending power with care, in
the interest Of stability.
Bolivia's only rayon mill, produc-
ing about 100000 yards q year,
wants to export.