Evening star., 1950-01-06
Truman Calls for 300 Billion
Output and 81 Million Jobs
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Output and 81
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mended that the Reconstruction
Finance Corp. be permitted to
raise the maximum maturity of
business loans substantially
above the present 10-year limit.
The President also recommend
ed permanent authority to control
consumer credit, if needed: perm
anent authority to regulate the
credit of banks covered by Federal
depositors' insurance; and stronger
controls over commootty specula-
ton. A repeated request for con-
tinuation of rent ceilings also was
included.
Overall Prescription.
The Presidents overall pre-
scription for good times was
summed up like this:
productivity per worker should
be increased by at least 2 to 21a
per cent a year. Labor should base
its policies on the prospect of a
stable and expanding economy.
Businessmen should base their in
vestment policies on confidence in
growth, shape their price policies
to the needs of larger markets
and proceed with vigor and in
genuity to develop new and better
products Of all kinds. Farmers
should make full use of new tech
nology and make shifts in produc-
tion toward those commodities
most needed in a growing peace
time economy"
With this, he said, Government
must promote an environment"
in which private initiative can
prosper.
While the report showed that
the public debt stood at $257 ,000,-
900, 900 on December 81, President
Truman insisted that "as 1850
opens, renewed confidence pre-
walls in the American economy.
This confidence is in itself an ele-
ment OF strength. and 1t is justi-
fed by the facts"
Amplifying, he said that 1ate
in 1948 we stood at the peak of
inflationary BOOM" but that an
adjustment had been madc with
less difficulty than ever before,
and today We are on firmer
ground than we were a year ago."
Employment Moves Up.
He saw as encouraging signs
that prices are down somewhat, "
home-building in 1949 reached a
new level and employment and
production are moving up.
Businessmen, workers and farm
ers contributed to this situation,
Mr.. Truman continued, as did
Government measures in such
fields as credit and banking,
social insurance and agricultural
price supports.
This effective teamwork be-
tween free enterprise and Govern
ment confounded the enemies of
freedom. who waited eagerly dur
ing 1949 for the. collapse OF the
American economy" the Pres
ident asserted.
Nevertheless, he continued "our
success thus far in reversing the
forces of recession cannot hide the
high price we paid for economic
instability.
He cited unemployment. busi-
ness failures and the adverse
. effect on the economy of free
nations whose continuing revival
depends on trade with U.S."
Spelling out the cost of the
slump-with a dig at the 80th
Congress for not enacting his pro-
posed infiation-control program
President Truman said that EN-.
ployment over the year averaged
So, TOO ,000-against a goal Of Co.
000. 900 jobs. The low point o1
non-agricultural employment wa.
49, ,700, 900 in May.
Unemployment averaged 3,400,.
600. or about per cent OF the
labor force, with the high point
4. 100000 in July. In December
it was just under $500, 900.
There has been a rapid rise ir
the number Of unemployed work.
ers exhausting their rights to un.
employment benefits" he added.
Total production of all goods
and services was $259, ,000, ,000, 900
or $4,000. .00o, 900 over the Decem.
ber rate, against the hoped fol
goal of $270, ,000, 900 900.
4 Farm income was off about Ii
per cent.
i Consumers disposable incom,
and personal savings were slightly
above those of 1948, but there was
a downward trend.
Wage increases ran below those
of other postwar years, according
to the President. who said also
that work stoppages were abou,
1.-THE same as in 1948, but that those
in coal and steel involved such
Igreat numbers. that the loss ir
fman-days Of work was about s5t
per cent UP for the year.
In looking to an economy oi
/ plus-$300. 900 ,000, 900 in i've years
president Truman said that "the
.0aiY1 In national incnYne rpniIld h6