Evening star., 1950-07-19

SbO90HOss
and which will maintain the fiscal
position of the Nation in the
soundest possible condition.
Must Restrain Credit Expansion.
AS a further important safe
guard against imitation, we shall
need to restrain credit expansion.
recommend that the Congress
now authorize the control of con-
sumner credit and credit used for
commodity speculation. In the
housing field, where Government
credit is an important factor,
have directed that certain avail
able credit restraints be applied,
and I recommend that further
controls be authorized, particu-
larly to restrain expansion of pri-
vately financed real estate credit.
These actions will not only re-
duce the upward pressure on
prices, but will also reduce the
demand for certain critical mate
rails which are required for the
production Of military equipment.
Third, we must take steps to
accelerate and increase the pro-
duction of essential materials,
products, and services. I recon-
mend, therefore, that the Con-
gress authorize, for national de-
fense purposes production loan
guarantees and loans to increase
production. I also recommend
that the Congress authorize the
making of long-term contracts
and other means to encourage the
production of certain materials
in short supply.
In the forthcoming Midyear
Economic Report. 7 shall discuss
in greater detail the current
economic situation, and the eco
nomic measures which I have
recommended. If these measures
are made available promptly, and
firmly administered believe we
will be able to meet military needs
without serious disruption Of the
economy.
To Ask Controls If Necessary.
If we are to be successful, there
must be sensible and restrained
action by businessmen, labor,
farmers and consumers. The peo-
pie Of this country know the seri-
BUSINESS of imitation, and will, am
sure, do everything they can to
see that it does not come upon
us. However, if sharp rise in
prices should make it necessary,
I shall not hesitate to recommend
the more drastic measures of price
control and rationing.
The hard facts of the present
situation require relentless deter
mination and firm action. The
course of the fighting thus far in
Korea shows that we can expect
no easy solution to the conflict
there. We are confronted in
Korea with well-supplied, well-led
forces which have been long
trained for aggressive action. We
and the other members of the
United Nations who have Joined in
the effort to restore peace in
Korea must expect a hard and
costly military operation.
We must also prepare ourselves
better to fulfill our responsibilities
toward the preservation of inter-
national peace and security
against possible further aggres-
sion. In this effort, we will not
finch in the face of danger or
difficulty.
The free world has made it
clear, through the United Nations,
that lawless aggression will be
met with force. This is the sig
nif1eance Of Korea-and it is a
significance whose Importance
cannot be overestimated.
Proud of Part i'm Crisis.
shall not attempt to predict
the course of events. But I am
sure that those who have 1t in
their power to unleash or with
hold acts of armed aggression
must realize that new recourse to
aggression in the world today
rniOhf uyol1 cfro;,s +1 fbo h~oal-;-
point the fabric of world peace.
The United States can be proud
of the part it has played in the
United Nations action in this
crisis. We can be proud of the
unhesitating support of the Amer
ican people for the resolute actions
taken to halt the aggression in
Korea and to support the cause of
world peace.
The Congress of the United
States. by its strong, bipartisan
support Of the steps we are tax
ing and by repeated actions in
support of international co-opera-
ton, has contributed most vitality
to the cause of peace. The ex-
pressions of support which have
been forthcoming from the lead
erS of both political parties for
the actions of our Government and
Of the United Nations in dealing
with the present crisis, have
buttressed the firm morale of the
entire free world in the face of
this challenge.
For Liberty and for Peace.
The American people, together
with other free peoples, seek new
era in world affairs. We seek a
world where all men may live in
peace and freedom, with steadily
improving living conditions, un-
der governments of their own free
choice.
For ourselves, we seek no ter
ritory or domination over others.
We are determined to maintain
our democratic institutions so
that Americans now and in the
future can enjoy personal liberty,
economic opportunity, and politi-
cal equality. We are concerned
with advancing our prosperity and
1 S@NN~ ,al1 L.