Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-05-03

dangered BY q mounting sense
Of insecurity against armed al
tack" He asserted that the North
Atlantic treaty would allay that
fear. and that provision Of Amer
gan military systems to build Up
the armed forces OF Western Eu-
rope would greatly increase the
security value OF the treaty.
He said. however. that 1T is
not enough merely TO perpetuate
the free institutions Of the West
ern World" He added:
They must be increasingly de-
veloped and made to yield greater
benefits for all the members OF
the human society they are de-
signed TO serve. Means mus,
be found to assure the adequate
and equitable distribution OF the
material things that make for a
better life. so that the peoples OF
this community and the world
can share in the benefits that
accrue from the common effort. I"
Mr.. Acheson described the
charter Of the international Trade
Organization, which President
Truman submitted to Congress
last week for ratification. as the
capstone Of the economic structure
We are trying to erect" to help
bring about this objective. The
goal of the ITO charter. he said,
lis the realization of higher levels
Of material well being through the
expansion of international trade"
Sounder Foundation Predicted.
Mr.. Shreve addressed the first
general session OF the cham
ber's 37th annual meeting as it
swung into its second day. The
session at the Hotel Statler was
on the general subject of national
security and economic progress.
Business recession from the
postwar peaks Is the inevitable
readjustment of supply. demand
and prices to normal market con-
ditions," Mr.. Shreve said. This
change brings overdue relief to
millions of consumers who have
been squeezed between high taxes
and high living costs.
When the current readjustment
has run its course and buying for
inventory replacement revives.
business should find itself on q
sounder and Infinitely more salts
factory foundation"
Warns Against Controls.
Mr.. Shreve warned against a
return to price controls and other
market restraints which, he said
would delay and perhaps halt
the transition from abnormal
boom conditions to q more solid
prosperity. 1t may be slowed, he
warned also. by high taxes, price
props and heavy Government
spending.
And so long as the threat of
a return to Federal deficit spend
ing hangs over the Nation" he
continued. "the threat Of another
round of imitation will remain"
Mr.. Shreve foresaw the need
Of developing new industries from
the advances in science, technol-
ogy and management through in
vestments Of billions Of dollars.
The quickest way to open up new
sources of capital for develop
ment. he said. is a revision of
Federal taxes to give more in
centive to risking taking invest
ment.
Henry A. Bulls, chairman of
the board Of General Mills, Inc,
Minneapolis. told the meeting
"the spectre Of idle men is rising
up again"
Problem for Industry.
Industry must come to grips
with this problem of maintaining
high employment" he continued.
1T is the responsibility OF business
leadership to provide jobs and
maintain them. II we fail. Gov
eminent will shoulder the load"
He listed these powerful stimu-
lants" to the economy:
/. Deferred demand built up
during the war.
2. Continued high level Of
consumer income.
8. The prevailing high level Of
liquid assets.
The present adjustment in
prices Is natural and desirable,
he said. To meet 1t. he recon-
mended voluntary prices cuts to
open new markets and suggested
that business increase Its own
purchases for investment and for