Evening star., 1948-07-27

dent Trumdn's message to the
special session OF Congress:
Mr.. President, Mr.. Speaker, Men,
bers Of the 80th Congress:
The urgent needs of the American
people require our presence here
today.
Our people demand legislative ac-
tion by their Government to do two
things: first, to check imitation and
the rising cost of living, and second
to help In meeting the acute hous-
ing shortage.
These are matters which effect
every American family. They also
affect the entire world, for world
peace depends upon the strength OF
our economy.
| The Communists, both here and
abroad, are counting on our present
prosperity turning into a depression.
They do not believe that we can
or will-put the brake on high
prices. They are counting on eco
nomic collapse in this country.
Reckless Folly to Fail.
| If we should bring on another
great depression in the United
States by failing to control high
prices, the worlds hope for lasting
peace would vanish. A depression
in the United States would cut the
ground from under the free nations
of Europe. Economic collapse in
this country would prevent the re-
covery throughout the world which
is essential to lasting peace. We
would have only ourselves to blame
for the tragedy that would follow.
In these tense days, when our
strength is being tested all over the
world, it would be reckless folly If
we failed to act against imitation.
High prices are not taking time
off" for the election.
High prices are not waiting until
the next session of the Congress.
High prices are getting worse.
They are getting worse every day.
We cannot afford to wait for the
next Congress to act.
The 81st Congress will not get
Ander way for nearly six months.
Before the new Congress could take
action against high prices, it would
have to draft new bills, study them,
hold hearings, debate, and decide
whether to pass them. 1t would be
at least eight months from now be-
fore the new Congress could pass
the laws we need.
8 More Months Too Long.
Eight months more of imitation
would be much too long.
1t was eight months ago-Novem-
ber, 1947-that I called a special
session Of this Congress, and rec
commended comprehensive anti
imitation program. But that pro-
gra mwas not enacted. II it had
been enacted, we would have lower
prices today.
Since last November, prices have
gone even higher. AS every house,
wife knows, food prices rose rapidly
throughout 1947. They are climbing
even faster now. Month after
month, the cost of clothing, fuel
and rent keeps on going up.
The cost of living is now higher
than ever before in our history.
We cannot risk the danger, or
suffer the hardship, of another
eight months Of doing nothing
about high prices.
Prices are already so high that
last year more than one-fourth of
the families of this country were
forced to spend more than they
earned. Families of low or mod
crate income are being priced out
Of the market for many of the
necessities of life. They are able to
buy less than they could two years
ago, and they are paying lot more
for what they can buy.
At the same time, industrial
prices, which affect all business and
employment, are rising, and rising
fast. Large price increases have
recently been announced by indus
tries that set the pace for the whole
economy. Within the last few days,
the steel industry, for example, in
creased its prices, on the average,
by more than SO a ton.
The rise in industrial prices is
just as important, in the long run,
as the high cost of living. 1t is
already squeezing the independent
businessman. 1t threatens to de-
stroy a fair balance between in
dustry and agriculture. 1t can end
only in catastrophe if allowed to
continue.
In the face of these facts, it is
foolish to point at every feeble straw
as sign that the danger is disap-
pearing. In February, some people
said that the break in commodity
prices meant that imitation was
almost over. They were wrong.
Prices rose again.
Direct Award Necessary.
There are still some people who
repeat the old argument which was
used by those who killed price con-
troll two years ago. They said that
If we would only take controls off,
production would increase, prices
would go down, and there would be
more for everybody at a lower cost.
The record shows Enthusiastically
that this argument was false.
Production has increased some
what, and we want it to increase
still more. But even with full en-
ployment, full use of available
materials, and practically full use
OF plant capacity-all of which we
have today-prices are still climbing
much faster than production. 1t is
obvious that we cannot rely solely
on more production to curb high
prices. Instead, We must attack
initiation directly.
If We do not stop imitation, pro-
duction and employment will both
fall sharply when the break comes.
Positive action by this Govern
ment is long overdue. 1t must be
taken now.
I, therefore, urge the Congress to
take strong, positive action to con-
troll imitation. Il have re-examined
the anti-inf1ation program I pro-
posed to the Congress eight months
ago. In Its essentials that program