Evening star., 1949-07-11

yer last year. -AP Photo.
able, they should not be attained
at the expense of wage cutting.
FISCAL POLICY.
The Governments programs Of
expenditures and receipts must be
carefully planned in the light of
economic developments as they
occur.
Under present economic condi-
tions, we cannot Immediately cor
rect the tax mistakes of the past
or the conditions which led to a
lower level of national income and
lower Federal revenues. Any tax
increase should be judged by the
effect which it might have upon
national income and purchasing
power.
Under present conditions, i'm
mediate tax increases should be
limited TO raising estate and gift
tax rates and closing the loopholes
in their administration, so as at
least to restore the revenue from
this source lost under the Revenue
Act of 1948. This will have no
significant adverse effects upon
present economic conditions. At the
same time, the tax on transporta-
ton of goods, which enters directly
into such large number of busi-
ness costs, should be eliminated.
Furthermore, the loss carry-over
provisions in the corporate income
tax laws should be liberalized in
order to give an increased incentive
to some business investments which
may now be held back because of
uncertain profit expectations. The
net effect of these changes in our
tax structure, taken together. will
be favorable to the expansion of
business activity. without causing q
significant net loss in total receipts.
No changes in tax laws which
would result in a larger net loss in
revenues would be justified at this
time. = I" ="
Present levels of expenditures are
due in large measure to the extraor-
dinary costs of our national de-
fenSe and international activities.
These activities are of such para
mount importance that it is out of
the question to slash them at this
time.
But, as our policy for peace takes
effect, it should be possible in future
years to reduce these expenditures
which now make such heavy de-
mands upon our Federal budget. AS
opportunity offers, shall make every
effort to achieve an excess of Fede-
raj income over outgo. consistent
with our major objectives of peace
and prosperity. I" -
MONETARY AND CREDIT
POLICY.
Federal monetary and credit
policies should contribute to the
needs Of an expanding economy.
Present conditions of ample credit
supplies and low interest rates are
favorable to business investment.
The policy of the Government will
be to continue to maintain orderly
conditions in the Government
security markets and to encourage
banks and other institutions to
maintain and expand their produc-
tive lending activities. .
AGRICULTURAL POLICY.
=" There Is immediate need to
overcome q number of shortcomings
in existing farm legislation. It is
necessary to assure fair and ade-
quate supports for major farm pro-
ducts, notaby livestock products,
which have not been covered in
past programs. 1t Is necessary to
authorize the use of direct produc-
ton payments as an alternative to
the pegging Of market prices If an
effective support program is to be
carried forward without waste of
commodities and without denying
to consumers the benefits of agri-
cultural abundance.
MINIMUM WAGES.
-" I repeat my request for the
immediate raising of the minimum
wage under the Fair Labor Stand
ards Act to at least rs cents an
hour. and the extension of the
acts coverage.
SOCIAL SECURITY.
- recommend that the Con-
gress strengthen our Federal-State
unemployment insurance system
by establishing minimum benefit
standards for all parts of the coun-
try and by broadening coverage.
These minimum Standards should
provide benefits for, 26 weeks rang
ing up to $50 a week for single
individuals, with additional amounts
for dependents.
I recommend that a Federal re-
insurance fund be- established for
those States which, meet the min
imum standards to assure that, the
increased protection will not threat
en- the continued solvency of State
unemployment funds.
I further recommend that the ex-
piration date for. unemployment
benefits for veterans under the Ser
vicemen's Readjustment Act be ex-
.saved my Life
a. r.c .,e DrurrpNin