Evening star., 1948-01-19
Baruch Asks Food Price Ro|Iback
Wage Sterilization No Tax Cut
And New Levy on Excess Profits
Would Guarantee
Formers Return
For Next 3 Years
By J. A. o'Leoy

By J. A. o'Leoy
Rolling back food prices, sta
bilizing wages and postponing
tax reduction were urged today
by Bernard M. Baruch to check
imitation as a necessary part of
attaining European recovery and
peace.
The silver-haired, 77-year-old ad-
wiser to Presidents in both World
Wars told the Senate Foreign Rela-
tions Committee he believes the
foundations of world stability and
peace can be achieved in two years
if the nations cooperating to that
end will work as hard at it as they
did to win the war.
Supporting objectives of the Mar
shall plan, Mr.. Baruch pulled no
punches in telling the committee.
however, that this legislation can
not bring peace by itself.
"If it's objectives are to be real
ized," he said, ait must be accom-
panied by two further actions-we
must stabilize America for peace;
we must develop global strategy
for American peace-making."
Suggests Guaranteed Prices.
He was equally frank as he urged
Americans to 60 without tax reduc-
ton for two years and suggested
that farmers "agree to major cut
in agricultural prices in exchange
for guarantee of being able to sell
their products at set prices for the
next three years.
THAT DONE" he added, 1--WE can
turn to labor and say, you, too, must
help hold this line on which peace
and stability hangs.
But the big thing, Mr.. BarueA
said, is to increase production here
and in the rest of the world. To
this end, ne recommended that the
United States offer to buy all raw
materials the world can produce and
cannot sell in normal markets.
AS for increased production here
at home, he said that should be
done where feasible with longer
hours and overtime" and by smash
ing production bottlenecks."
11-Point Program Offered.
He presented altogether an IL
point "peace-waging" program in
cluding a plan for European nations
to form a union pledged to resist
aggression and in return get an
American guarantee Of aid if
they do.
Mr.. Baruch offered no recon-
mendation as to how much money
Congress should vote for the Mar
shall Plan The administration asks
Sc, 300, ,0OO,0 900 for the first Is months
Of its operation.
Mr.. Baruch said it is "to the in
terests of peace to aid Europe's
recovery and such aid should be
substantial"
Mr.. Baruch. who spent much of
his time after World War I warn
ing this country how to profit from
the lessons of that struggle, testified
that to make the future worth
working for there must be bold,
resolute, concerted attack against
the clawing fears of imitation and
Of another war;
Urges Buying Raw Materials.
ITO this end" he continued, II
recommend:
81. The United States stand ready
to buy all nonperishable raw ma
terrials produced anywhere and by
anyone in the world for the next
five years, which cannot find nor
NAL commercial markets.
20. Extend the Presidents present
tariff authority for the next three
years.
"3. That the countries of Europe
AS many as are willing-band
themselves into political. economic !
and defense union under the United !
Nations. This would include the
lowering of trade barriers among
them.
"a. That the United States, and
such others as will join us, mutually
guarantee the nations entering this
union against aggression. BY guar
antee, I mean a firm promise to go
to war in joint defense if any of
them are attacked.
IS. That the European nations
organize to liberate and use every
productive resource of the continent,
with those of the Ruhr regulated
under priorities and international
control so as to protest the peaceful
interests of Germanys neighbors.
"6. Stabilize all European curren-
cies and establish realistic rates of
exchange.
Peace Production Drive.
"7. A two-year peace production
drive in this country-to work for
peace as we worked for war-where
feasible, with longer hours and over
time; where not, to smash produc-
tion bottlenecks.
"8. AS part of this work-for-
peace sdrive, an across-the Nation
anti-inf1ation program to stabilize
for peace, including:
"A. Reduction of major food and
agricultural prices in exchange for
guaranteeing farmers an assured
price for their crops for the next
(See FOREIGN AID, Page A-6.)
Churchill Quite Well
LONDON, Jan. 10 [P).-Winston
Churchill returned today from a