Evening star., 1949-04-17

is a tool prov .aea IN aany lAseg
and In essfriang is influence On
the attitude ot Government
The basic change tn soNeTn-
mental philosophy ~as iarmAlsse<i
in The Employment Ae, al lste
Altt4ogsh that act watrEed co~n
the Eeonoane Bill @; RlEhts'
which President Roosevelt enan-
eiaiea MI that the measure avoids
any Government guarantee ni fall
employment II dog contain = pre-
afiahlc which Sass
rne CangyeSS hereby declares
that II Is the enntlnuanS policy
and respond iellity oi The FecslAl
Government 10 pgomols
maximum employment, proaue ten
and pugvaaslng power
Planned Employment
Go President Murray has
called on President Truman 10
submit a special message la Con-
greAs requesting increased uHetn~
plovment compensation. enact
men, az the Truman SishiilHsuor
program. including authority for
the Government To build plants te
increase productive capacity af
such basic industries aS steel, ard
select tive authorization oi public
works In specific areas where
pockets" O. unemployment even
nov constitute . serious problem
There ARE indications that the
demand for steel ls tapcrlns OF.
and approaching the point at
which 1t wiil meet demand. at
present prize levels But the Clo
regards this a. an illustration Of
planning for unemployment" "
rather than planning for EN-
ployment
The CIO economist, Stanley II.
Ruttenbere. cites steel and auto
mobile production last year as
typical
Last year We produced about
5000 900 automobiles. he told the
writer. The productive capacity
OF our automobile plants eas
about 1000 900. The reason those
900. 900 automobiles acre not
produced was because Of the steel
shortage
II they had been produced.
that would have affected our whole
economy. II would have meant
the rubber plants would have had
TO produce tires for 2.ooo 600 auto
mobiles. the textile industry would
have produced the fsbels that SO
into the tiieA and the upholstery
/ fabrics required for 2.po0. 900 auto
mobiles that weren't produced
Question oil Absorption
Then YOU come 10 the aaes-
ton OF whethe the market would
have absorbed the extra 1000 900
automobiles, RuttenberK asked.
But II the automobile makers had
been content with reasonable
profits. they could have reduced
prices NO that the market would
have absorbed all the automobiles
they were capable of producing "
To state the causes Of unem-
pioyment rs the clio sees them 10
TO state that organtxation's pro-
gram for full employment, In .
phrase. II bolis down 10 this Re-
move the causes. In detail, quot
ing Mr.. Murray. IL Is planning for
full employment by:
Increasing the total pur-
chasing power. this IL. wages
and income OF The maas Of
American people
Slabilizing the price stTue-
ture by reducing profit margins.
Increasing plant capacities
In basic industries. such rs steel.
electric power and aluminium.
Promoting. through Govern
ment. public housing and Ers1-
eral public works. and.
To the extent these adjust
fnents are not made. Swing
greater consideration To FED
eral fiscal policy and tax mat
tsrs.
Cautions Against Panic
Addressing the United States
Conference Of Mayors recently.
Bernard NJ Baruch. for many
years an intimate adviser Of Pres
idents. cautioned them not 70 set
panleky. and 70 postpone thslr
public works progTafna until th@
overall decisions are made IN
Washington which viii detsFmins
the course OF Our economy. He
vas referring TO the scope OF oar
various programs for aiding other
iRne HANION. Page ca