Evening star., 1948-01-14
Calls for Standby
Price, Wage and
Rution Authority
By Sterling F. Green
Associated Press Staff Writer

President Truman declared
today that American prosperity
Is riding a "wave of imitation"
toward the peril of a serious"
business slump.
Keying his second annual eco
nomic report to a renewed plea for
legislative power to cope with soar
ing prices, the Chief Executive told
the Republican Controlled Congress:
"The American people are keenly
aware that imitation is the dominant
problem in our aaffirs."
Mr.. Truman used urgent words IN
demanding once again the full-1O-
point anti-infation program which
the lawmakers refused him during
last falls special session. He as
serted that standby price, wage and
rationing authority are needed,
needed badly, and needed promptly. y
Calls for Price Cuts.
In addition to congressional action,
the President called on business to
cut prices wherever possible, fore
going quick and dangerous excess
profit in favor of long -runrstability.' y
And he urged labor to be "moder-
ate" in its third round wage de-
n1ands.
Nor did he yield any ground on
taxes.
He insisted that the $500, 900 900
Treasury surplus now in sight for
next June 80 must be used to lower
the national debt, not cut tax rates
as the Republicans are determined
to do.
And Mr.. Truman repeated his
proposal for a $40-a-person cost OF
living income tax cut to be made
up by higher taxes on corporations
After reciting record-breaking
gains during 1947 in nearly every
phase of economic activity, the Chief
Executive forecast another year OF
splendid achievement"
Fears Runaway Prices.
But he took alarm as well as pride
in the advances.
UNLESS we as a Nation show an
ability to impose restraints on our
selves and to utilize the machinery
of our representative Government to
devise well-considered regulatory
measures, we stand in great danger
that runaway prices, over-extended
credit and unbalanced developments
will lead to an economic recession.
I'VE cannot be sure that such
recession would not be severe and
recovery slow and painful"
Mr.. Truman added: When an
imitation is in progress, there is no
way of predicting when it will break
of its own accord. One can only be
certain that, if permitted to run its
own course, it will break with de-
structive force"
The economic report, last of three
major White House messages to the
new session of Congress, set these
national goals for 1913:
"A 8 per cent gain in production.
Last years target of 5 per cent was
narrowly missed per cent more
goods was UuTIleU OuI UuU 1CWCA
services, such as medical, laundry
and the like, were made available.
2. Jobs for 100000 as year.
long average. This is 100000 above
the 1947 figure even though last
years June peak topped the So
called full employment" goal OF
100000 jobs.
8. The start of broad social
public welfare, resources conserva-
ton and industrial development
program designed to immunize the
Nation from periodic depressions'
and to provide Americans with
"richer and more satisfying lives. =
Better Income Distributions.
More income for consumers will
be needed, Mr.. Truman said, to keep
production up when exports fall of
when credit shrinks and when saw
ings are reduced, and more con-
sumer income must be accompa-