Evening star., 1949-07-11

! given a SnOL OF dQTe1ldlll Uy
monia after arrival by plane t
en- route from Douala, Africa,
elephant ever brought to the [
health program was the nearest
the President came to an argu-
ment for his health insurance plan
which also would call for a tax
increase.
Stresses Social Security Plan.
/ The health levy. with added
social security taxes which the
President had hoped to have ef-
fective July l, would have cost
the public about $2,000,000, ,00o
more.
While repeating now his recon-
mendations for broadened. cover
age and higher benefits under the
old-age insurance program, the
President said these can be cared
for without hurting purchasing
power by following the present
schedule which calls for increas-
ing payroll taxes on employer and
employe from one to one and one
half per cent each, January l.
Along the same line. his plan
for liberalizing the Federal State
unemployment compensation sys-
tenn would have Congress estab-
lish minimum benefit standards
for all parts of the country. These
would provide benefits for rs
weeks ranging up to $50 weekly
for single individuals, with addi-
tional amounts for dependents.
At present, payments average
roughly S25 for 20 weeks.
Supports $3.50 Extension.
The President also went along
with congressional advocates of
extending for year the 52-20
plan for veterans, which expires
July Is. He said, however. that
these $40 benefit payments which
serve as readjustment allowances
for a year, should not be avail
able to those eligible for unem-
ployment compensation under
State laws. except where neces-
sary to bring State payments up
to the Federal level. or when
State benefits are used up"
The President sale ample credit
supplies and low interest rates
are favorable to business invest
ment. and that "the policy of
the Government will be to con-
tinue to maintain orderly condi-
tions in the Government security
markets, and to encourage banks
and other institutions to maintain
and expand their productive lend
ing activities"
The President explained that he
wanted the maturity extension
for RFC loans to aid business
ventures which are economically
sound and urgently needed in an
expanding economy, but which
require long periods of time to
develop and produce earnings
that will permit orderly amortiza-
ton of debt
Re-emphasiZes Global Aid.
| It was in this same connection
that the President repeated his
recommendation that Congress
provide for a broad study of po-
tential business investment, ex-
pansion and market opportunities
under conditions of maximum use
of the productive resources of the
country.
The President re-emphasized
the importance of action by Con-
gress>to push point four of his
global-prosperity program by pro-
viding for aid to under developed
areas of the world, declaring it
will improve the prospects of
other nations for dealing with the
United States.
President Truman also pointed
to the danger of declining imports
and warned against protectionist
measures designed to aid the do
mestic market.
"ProtectioniSt measures would
not merely shift the problem of
inadequate markets to other
countries, but would also with the
present dollar stringency, prompt
ly reduce our own exports" he
said.
Explains Public Works Plan.
Mr.. Truman said the current
situation does not call for an i'm
mediate and sweeping expansion
of public works." but that ad-
vance planning looking toward
this eventuality should be under
taken. The Government is plan
ming expenditure of about $3,000,-
100000 for each of the next three
years, which with private con-
struction expenditures and State
and local outlays in excess of
$3,000,000.000 annually. should
take care of the situation, it was
explained.
Inc PRESIDENT indicated an in
tention of going in for public
works in areas where severe un-
employment develops.
In its review of the Nations
health. the Economic Advisers,
headed by DR.. Edwin G. Nourse,
described as inevitable" the re-
adjustment that has accom-
panied the relaxing of inf1ation-
ary pressures developing in the
postwar period from shortages
OF goods, vast savings, and high
level of military expenditures.
The pickup expected in the
second quarter this year, how
ever. did not materialize, and
1.-The weakening of markets has
become general"
While still seeing grounds for
concern. the Council said that
many factors aup,Ir well for the