The Daily Alaska empire., 1950-01-06
NEW POLICY FOR NATION
 STATED NOW
Adjustments Requested : Power 10 Control Credit,
 More Liberal Loans
By Sterling F. Green


 | WASHINGTON, Jan. -IR-Pre- sident Truman declared today the United States can offer it's people 6l million jobs this year, GA mill lion in five years and, in the end, the complete elimination of poverty"
 In sober yet optimistic annual economic message, MT. Truman told Congress the nations economy has emerged strong and stable, and with reborn confidence, from it's postwar crisis.
 The way lies open, he said, for a rise in national income equal to nearly $l,000 a year for every family by 1854. His startling state- ment seemed to mean an average American family income above $5,- 900 four years hence
 Magnificent Challengev
 Mir Truman called on business. labor and farmers-as well as the Government-to rise to the mag nificent challenge" ahead: A steady growth of income, employment and production to hitherto unknown | levels.
 The President added two points to his legislative want-list: Steady powers to control credit, and more liberal loan terms for little busin- ness. He again asked a moderate" tax increase.
 Hanas cff-Wages But he proclaimed this turning point in national policy: Prices-with some "outstanding" exceptions-are generally close to the level where they should stay The basic economic problem fac- ing the country now is not infla- tion"
 1 As for wages, the Administration 1 hopes to keep hands off. These adjustments.' MT. Truman said, are now in the hands of manage 1 ment and labor. That is where they should remain"
 The economic message, read to both Houses of Congress by clerks, was the second of trio of carly session reports submitted to the lawmakers by the President.
 Budget Message Monday The first, on Wednesday, was the State of the Union message. On Monday he sends Congress the fin- al one, outlining his budget pro- posals for the 12 months starting next July 1.
 In the economic message, the President seemed to have penned a potent morale-builder for business. He gave credit to industry, labor and agriculture for the judgment and restraint" which, he said, help ed pull the country through the | 1949 recession.
 Lofty Gtnls Ahead
 The lofty goals ahead, he pre- dicted, can be achieved if the same groups pull together and If gov ernment hews to wise policies namely the policies he blueprinted in today's message and Wednesdays i State of the Union address.
 The proposed tax increase will not be severe, he promised. But he kept his secret on the kind of tax changes wanted. using the same words as before: Changes which will reduce present inequit- ies, stimulate business activity, and yield a moderate amount of ad- ditional revenue"
 Balancing Budget The budget will be balanced, he said, lat the earliest date consis- tent with the welfare of the co.in- try Progress will be helped by improved business conditions and the fact that Federal expenditures should decline somewhat over the next few years"
 Tn the long run, the Govern ment's fiscal position depends. upon the health of the national econo- my. It will not be promoted by drastic slashes in expenditures which are essential to our economic growth and to continued peace.
 Neither will it be promoted by tax increases so drastic as to stifle business activity"