Evening star., 1949-07-11

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1t would be dangerous, however, to
neglect the precautionary prepara-
ton of measures which might be
needed if the business downturn
should become more serious. "
I urge, therefore, that the Con-
gress % enact legislation to pro-
vide for loans to assist State and
local advance planning OF public
works; CD provide funds for the
public buildings administration for
advance planning and site acquisi-
ton for Federal construction, under
the authority recently enacted; 90
enable the Bureau of Public Roads
to make advances to states for ac-
quiring and clearing rights f-way;
and "a provide for the surveys and
planning for school construction
which I have previously recon-
mended Together with the advance
planning already under way by
many Federal agencies, these ac-
tions will round out substantial
backlog of planned public works.
While unemployment is not now
at very high level for the country
as a whole, there are many locali-
ties and even some States where 1t is
serious. These pools of heavy un-
employment need to be treated be-
fore they spread, and the RESPONSE
bility is in part national.
There are a number of Federal
programs of direct action or assis-
tance to localities which can be
timed and channeled so as to con-
centrate upon areas where unem-
ployment is heavy without sacrifice
of general national objectives
This principle of wise selectivity
Is particularly applicable to procure
ment and construction activities,
but it is also relevant to other grant
or loan programs designed to stimu-
late private enterprise or to effect
public improvements.
| Toward this end, I am directing
that continuing review of such
activities be undertaken within the
executive Office, in order to co-ors
dinate planning. To keep the vari-
GUS types of activity and their
geographic distribution in proper
balance and readiness, and to focus
emphasis upon alleviating unem-
poyment in particular areas where
1t becomes serious before it has a
chance to spread. I am also having
a study made of possible changes in
the laws governing these activities
which may be needed for these
purposes.
FOREIGN ECONOMIC POLICY.
>" 1t is especially important at
this time for us to continue the ef-
forts we are making to help rebuild
strong and advancing world econ
omy, based upon an effective net
work of world trade and the grow
ing productive strength of free ma
tions. In addition to maintaining
our foreign assistance programs, and
restoring a full-scale reciprocal
trade agreements act, I urge the
Congress to enact the legislation I
have recently recommended to ex-
pand both technical and capital
assistance for the economic growth
of underdeveloped areas.
The expansion of foreign invest
ment, by making more dollars avail
able directly to the underdeveloped
countries and indirectly to the capi-
tai goods exporting countries of
Europe, will improve the rest of
the worlds ability to buy from us.
The expansion of technical assist
ance will stimulate foreign invest
ment by assisting countries that
want capital for development to
translate their aspirations into con-
crete projects, by creating new pro-
ductive investment opportunities.
and by increasing the private in
vestor's knowledge of those that al
ready exist.
Both under its existing authority
and under the new legislation 1
have proposed, the port-Import
Bank will be expanding its opera
tions and substantially contributing
to these objectives. ."
SUMMARY OF LEGISLATIVE
RECOMMENDATIONS.
In summary, I recommend that |
the Congress take the following ac-
tions at this session because of their |
vital Importance in the current eco
nomic situation:
l. Repeal the tax on the trans
portation of goods, liberalize the
provisions for carry y-over of losses
by corporations, and raise estate and
gift taxes. No major increase in
taxes should be undertaken at this
time
2. Extend the maximum time limit
now fixed by law on the maturity
of loans to business made by the
Reconstruction Finance Corpora
ton.
3. Provide for a broad study of
investment and development needs
and market opportunities in an ex-
panding economy.
4. Adopt an improved program of
farm income supports.
S. Increase the minimum wage to
at least IS cents an hour and
broaden its coverage.
g. Strengthen the unemployment
compensation system by increasing
the amount and duration of bene-
fits and extending coverage.
7. Extend to July Is, 1850, the
availability of readjustment allow
ances for veterans not protected by
state unemployment compensation
laws.
8. Raise benefits and extend cover
age under the old-age' and sur
vivors insurance system and improve
the public assistance program.
9. Enact legislation to permit
Federal agencies, and assist states
and localities, to intensity their
advance planning and to acquire
sites for useful projects.
10. Enact legislation to provide
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