Evening star. [volume] (Washington, D.C.) 1854-1972, 1950-12-16

e declaration of national emer-
-AP Photo.
rapid expansion to full mobiliza-
ton If that becomes necessary
We can handle this production
program, but it will require hard
work.
It will require us to make LOT
of changes in our ordinary ways
of doing things.
And this brings me to oul
fourth big job. In order to builo
the military strength we need
we will have to expand our pro-
duction greatly. We must also
prevent imitation. and stabilize
the cost of living.
| If we are to make the weapons
we need soon enough, we shall
have to cut back on many lines
of civilian production. But we
cannot build up and maintain
our armed might, and the indus
trial strength underlying it. sim
ply by cutting back civilian pro-
duction. We must produce more
more steel. more copper, more
aluminium, more electric power
more cotton, more of many other
things.
We must set very high targets
and be willing to make an all-out
effort to reach them. Workers
will be called upon to work more
hours. More women. and more
young people and older workers
will be needed in our plants and
factories. Farmers will have tt
set higher production goals
Businessmen will have to put al
their know-how to work to in.
crease production.
Must Hold Prices Down
A defense effort of the size WI
must now undertake will inevi
tably push prices up. unless We
take positive action to hold then
down.
We have already taken a number
of steps. We have put restrictions
on credit buying. We have in
creased taxes. I hope that the
Congress will enact an excess profits
| tax at this session. Still further
taxes will be needed. We cannot
escape paying the cost of our mill
tary program. The more we pay
by taxes now. the better we can hold
prices down. I have directed that
recommendations be prepared, for
early submission to the Congress
to put the increased cost of de-
tense as nearly as possible on a
"pay-as-you-go" basis.
have also instructed the Direc-
tor of the Budget to reduce the non
military expenditures in the new
Federal budget to the minimum re-
quired to give effective support to
the defense effort.
Essential Measures.
The measures I have just men,
tioned-credit control, higher taxes
and reduced non-military expendi-
tures-are essential. They are our
primary defense against imitation,
because they strike at the sources of
imitation. But as We move into a
greatly increased defense effort, we
must also take direct measures to
keep prices in line.
| The Government is starting at
once to impose price controls upon
a number of materials and products
These will be mainly items impor-
tant to defense production and the
cost of living.
In those fields where price con-
troll is imposed, the Government
will also undertake to stabilize
wages, as the law requires.
In the immediate future, a series
of control orders will be announced
by the Economic Sterilization
Agency.
Fair Standards Sought.
In addition, the agency will an
nounce fair standards for prices and
wages in those cases where manda-
tory controls are not imposed. !
ask everyone concerned not to set
prices and wages higher than these
standards will allow. If these
standards are violated, it will speed
up the imposition of mandatory
controls, including roll-backs where
needed.
The chiselers will not be allowed
to get by.
AS we move ahead with this mo-
Utilization effort, there will be in
creased need for central control
over the many, Government activi-
ties in this field. Accordingly, I am
establishing an Office of Defense
Mobilization. I am appointing Mr..
Charles E. Wilson to be director of
this office. Mr.. Wilson is resign
ing as president of the General
Electric Co. to take this job. In his
new position, he will be responsible
for directing all the mobilization &C
tivities of the Government, includ-
ing production, procurement, man.
power, transportation and economic
sterilization.
The Government is also moving
forward with preparedness for civil
defense. have appointed former
Governor Willard Caldwell of Florida
to be Federal Civilian Defense Ad-
miniStrator.
In addition, I have recommended
legislation to the Congress which
will authorize the Federal Govern
ment to help States and cities in
their civil defense preparations. I