The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1950-07-27
Pres. Truman Outlines Preparedness
PROGRAM In Nation Wide Radio Address

Washington LPA - President
Truman told Congress and the ma
tion on July 19 what steps he con-
siders necessary to meet the pre-
sent world crisis. He made specific
recommendations in a message to
Congress, and then told the people
about the situation in a nationwide
radio address that evening.
Truman called for: Unlimited
military forces, $40 billions more
at once for military and related
purposes, increased taxes, estab-
lishment of priorities, control OF
credit, and guards against infla-
tion and profiteering. He added the
warning that eff sharp rise in
prices should make it necessary,
shall not hesitate to recommend
the more drastic measures of price
control and rationing."
He expressed confidence that if
the measures he wanted, "are made
available promptly, and firmly ad-
ministered, | believe we will be
able to meet military needs without
serious disruption of the economy"
(Senators Maybank and Tydings
and Representatives Spence and
Vinson introduced emergency econ
omic and military bills shortly
after the message was delivered.)
Truman warned that economic
measures must be planned and
used to develop and maintain our
economic strength for the long run
as we'll as the short run" We must
recognize, he said, that for num-
ber of years it will be necessary to
support continuing defense expend-
itures, including aid to other ma
tions, "at a higher level than we
had previously planned"
This nation must, he said, in
crease it's military strength and
preparedness not only to deal with
in Korea but to increase
"our common defense, with other
free nations, against further ag-
gression."
"In all that we do" said the Pre-
sident, "we must make sure that
the economic strength which is at
the base of our security is not inn
paired, but continues to grow"
Noting that present total output is
at the rate of $270 billions a year,
he said "the potential productive
power of our economy is even
greater" and that with this enor-
nous economic strength, the new
and necessary programs | am re-
commencing can be undertaken
with confidence" but he warned
the programs will require sub
stantial redirection of economic
resources"
With military and related pro-
to be expanded at more
rapid rate than total production can
be expanded, and with some short
ages present now, and with prices
rising, "these increased pressures,
II neglected, could drive us into
a general inflationary situation"
he warned. He added that the ma
lion must insure that meeting in
creased national defense needs
1oes not bring on initiation.
Therefore he recommended that
Congress enact legislation to estab-
ish priorities and allocate mater
ais; limit use of materials for non
purposes; prevent invent
Dry boarding; requisition supplies
and materials needed for national
lefense.
Since sharply increased expendi-
lures will result, 1--WE should in
.rease federal revenues more|
sharply than | have previously re-
commended" said Truman, "inl
,rder to reduce the inflationary eff
'ect of the government deficit"
Every effort must be made, hel
"to finance the greatest
amount of needed expend-
lures by taxation. The increase inl
axes is our basic weapon in off
setting the inflationary pressuresl
'xerted by enlarged government
Heavier taxes WILL