Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-01-07
Truman Seeks Million
More Jobs This Year
And Increased Output
Continued From First Page.)

e.
ceilings except where wage adjust
r1elts are essential to remedy hard
ship, to correct inequities or to pre-
vent an actual lowering of living
standards"
Declaring that there are some
inoGances where noninf1ationary
wage increases can be granted with
out price increases, the President
said:
Il firmly believe that the normal
processes of collective bargaining will
result in sound wage adjustments
without the actual application of any
governmental authority related to
wages if business and Government
make genuine efforts to hold down
excessive prices and profits and tc
reduce the cost Of living"
Restrained Wage Policy.
In this connection, the report
itself advocates restrained wage
policy" in the interest of both
management and labor.
The Presidents message pointed
out that while wages went up in
1948, there was considerable dis
parity" in the increases as between
various groups of workers and
though some managed to keep ahead
of rising living costs, others fell
behind.
In renewing his demand for man.
datory ALLEGATION powers over key
materials in short supply the Pres
ident said that these, TOO, would
be applied on selective basis. He
also asked for temporary extension
of the law permitting voluntary al
location agreements which expires
February g.
The President modified, somewhat,
his early demand that the Govern
ment construct facilities to produce
critical supplies - such as steel -
when private industry fails to meet
the country's needs. He called again
for study in this connection, and
said legislation should provide ad-
ditional authority to deal more effec-
lively with inadequacy of capacity
and supply" if this is needed.
Controls on Bank Credit.
Mr.. Truman also spelled out his
State of the Union recommends
lions for bank credit controls, with
the explanation that the authority
= OF the Federal Reserve Board to
increase the reserve requirement of
member banks expires June 80. He
wants a new law to cover both
Federal Reserve members and banks
insured under the Federal Deposit
Insurance Corp, which would be
required to hold supplemental re-
serves up to 10 per cent against
demand deposits and 4 per cent
against time deposits.
He told Congress also that the
installment buying curb he wants
extended has only until June 90
The economic report was prepared
under the employment law of 1916
which aims at continuous maxi
mum employment, production and
purchasing power and, Mr.. Tru-
man said, Il firmly believe that this
goal is attainable.'
His call for 100000 more Jobs
would boost average employment to
more than 100000 as compared
with 194S. when the range was from
100000 to 100000.
The output of goods and services
last year was in excess of s252. 900, =
600, 900. This was an increase of 3
to per cent over 1947.
Profits hit new high of 81 per
cent after taxes.
las I pointed out year ago such
profits are in excess of the levels
needed to furnish incentives and
equity funds for industrial expan-
sion and to promote sustained eco
nomic health, although some bust
ness have not thrived nearly so well
as Others" the President said.
Price Movement Irregular.
The President pointed out that
prices ceased their broad upward
movement last year. with trends be-
coming more irregular and more
selective."
Metals. metal products, building
materials, fuel and lighting ma
terials and most durable goods
moved upward. Farm products led
the decline in other groups and food
prices dropped some late in the year.
This drop, Mr.. Truman continued,
has been welcome sign" but, he
continued, "the sharply divergent
movement of prices, both up and
down. confront us with urgent
problems of adjustment to sustain
maximum employment and produc-
ton"
Because of sound economic pol
icies, the President said, the country
escaped a general recession" last
spring when grain prices broke He
attributed this to combination of
Government and private action"
and said that the country now must
look for an improved combination"
to provide additional safeguards.
Dangerous Inf1ationary Forces.
But there still are spots where
dangerous infationary forces con-
tinue to be predominant" the Pres
tdent said, explaining, for example,
that shortages of steel and electric
power, and mounting utilities costs,
add to production costs which have
been passed on to the public.
The President admonished that
war-created demand and war-cre-
ated purchasing power have waned,
and I'VE must now rely more fully
on currently generated purchasing
power to absorb full output of
goods and services
He warned that a sharp price de-
cline could cause as serious a dis
location as uneven movement of
prices upwards.
OMahoney States Detectives.
Republicans shouted Socialism"
at the first outlines of Mr. Truman's
program when he submitted it to
Congress Wednesday, Business is
expected to battle anew every ma
jor proposal for taxes and more
economic controls.
But Senator OMahoney, Demo-
crat, of Wyoming slated to succeed
Senator Taft, Republican, of Ohio
as chairman Of the Joint House.
Senate Economic Committee, said ::
From repeated conferences with