Toledo union journal. [volume] (Toledo, Ohio) 1942-current, 1950-07-28

MESSAGE W \OllSL coo, uiAo IiAGAL "
in a nationwide radio address tn
Truman called for: Unlimited
military forces, $40 billions more
at once for military and related
purposes; increased taxes, es-
tablishment of priorities, control
of credit, and guards against in
flation and profiteering. He add
ed the warning that IF a sharp
rise in prices should make it
necessary, l shall not hesitate to
recommend the more drastic
measures of price control and
rationing."
He expressed confidence that
if the measures he wanted, "are
m a d e available promptly, and
firmly administered, l believe
we will be able to meet military
needs without serious disruption
of the economy" (Senators May
bank and Tydings and Repre-
sentatives Spence and Vinson in
troduced emergency economic
and military bills shortly after
the message was delivered.)
Truman warned that "econ-
omic measures must be planned
and used to develop and main
tain our economic strength for
the long run as well as the short
run" We must recognize, he
said, that for a number of years
it will be necessary to support
continuing defense expenditures,
including aid to other nations,
"at a higher level than we had
previously planned"
This nation must, he said, in
crease its military strength and
preparedness not only to deal
with aggression in Korea but to
increase "our common defense,
with other free nations, against
further aggression"
"In all that we do" said the
President, I'VE must make sure
that the economic s g I h
which is at the base of our Sc
curity is not impaired, but con-
tinues to grow" Noting that
present total output is at the
rate of $270 billions a year, he
said "the potential productive
of our economy is even
greater" and that with this
enormous economic strength, the
new and necessary programs I
am recommending can be under
taken with confidence" but he
warned the programs twill re-
quire substantial redirection of
economic resources"
With military and related pro-
curement to be expanded at a
more rapid rate than total pro-
duction can be expanded, and
with some shortages present
now, and with prices rising,
these increased pressures, If
neglected, could drive us into a
general inflationary situation"
he warned. He added that the
nation must insure that meeting
increased national defense needs
does not bring on initiation.
Therefore he recommended
that Congress enact legislation
to establish priorities and allo-
cate materials; limit use of ma
terials for non-essential pur-
poses; prevent inventory hoard
ing; %requistion supplies and ma
terials needed for national de-
tense.
Since sharply increased ex-
penditures will result, "we
should increase federal revenues
more sharply than / have pre-
viously recommended" said Tru-
man, 'in order to reduce the in
flationary effect of the govern
mcnt deficit"
Every effort must be made, he
continued, Ito finance the great
est possible amount of needed
expenditures by taxation. The
increase in taxes is our basic
weapon in offsetting the infla-
tionary p%ressures exerted by en-
larged government expenditures.
taxes will make general
controls less necessary"
He called for "a balanced sys-
tenn of taxation" which would
distribute the tax burden fairly,
and whose major aim should be
1.-THE elimination of profiteer-
He promised to present
such a program "as soon as nee
essary studies are completed"
Meanwhile he called on Con-
gress, as further safeguards
against initiation, to authorize
control of consumer credit and
credit used for speculation in
commodities. (The day before
The President had acted to curb
building boom and head off
prices by imposing credit
restraints on housing, limiting