Evening star., 1951-01-12

ity as rapidly as possible and hole
it for the duration of the present
emergency. This will require the
broad extension of price and wage
controls to hold down the upward
spiral. The stats to apply
broader controls are now being
rapidly gathered. ;.
1t is my confident belief that
price adjustments, after stabliza-
ton, will not be only in an up
ward direction. In many in
dustrial lines, extensive additional
production, made possible in many
instances by military orders added
to civilian orders, will result in
lower costs, which can be passed
on both to civilian buyers and tC
the Defense Department.
To prevent excessive speculation
in farm products and wide fiuctu-
ations in their prices, the Depart
ment of Agriculture should be
granted authority to control spec
ulative trading and to strengthen
its regulation of commodity ex-
changes.
Price and wage stabilization
must both be undertaken, because
of the economic connection be-
tween prices and wages. It follows
from this that neither price action
nor wage action can be decided
upon in isolation. The decisions
must be reconciled. They Lllst
be subject to central direction.
/ 1t is already plain that the pres
ent rent control law has beer
made obsolete, in the light oi
necessary curtailment in the rate
of housing construction and the
current inflationary pressures
Since rents are such a key ele-
ment in the cost of living, I recon-
mend that the Congress extene
and strengthen the rent contro
Law.
national Programs.
Our progr,.n OF military ane
economic aid for the strengthen.
ing of the community of free ma.
tions, including our programs fol
the underdeveloped areas, are O.
vital Importance. They are closel!
related to other aspects of our for
eign economic policy s.. In {
short time. I shall send to tn,
Congress detailed recommenda
tions on our international eco.
nomic programs.
Use of export controls and allo-
cations will enable the United
States to carry out more effec.
lively its part of internaNona.
ALLEGATIONS agreements. and tt
distribute more efficiently Other
commodities in short supply.
i The power to control exports
now scheduled to expire June 80
should be extended.
International trade policies
should be adjusted to Joint re.
quirements. The common de.
Ifense objective can be furtherec
Iby the reduction Of tariffs. quota:
and other trade barriers. To thi,
! end, the Trade Agreements Acf
! should be extended. =.
/ BY June 1850, the economy hae
almost fully recovered from the
mild recession of the previous
year. -.
Civilian employment averaged
almost 900 million persons ir
1850, compared with 58.7 millior
in 1949. -.
i Unemployment. after reaching
a peak of At million persons ir
February . reached low of is
million in October. and then rose
slightly in the last two months Of
, the year. :. :.
Production of goods and serv-
ices as a whole in 1850 was 7 pei
cent greater than in 1949. This
; was a record for any postwar
year. and apparently was close tt
the record reached in World Wal
II. ...
i Wages and salaries and other
; labor income rose continuously in
) 1850, rejecting wage rate in
creases, longer hours of work, ano
increased employment. BY the
fourth quarter, they had reached
!; a record high of 1859 billion dol
lars, 16 per cent above the level a
; year earlier. ..
Record Profits.
Profits of American business
before taxes. exceeded all records
in 1850, reaching 400 billion dol
lars, or As per cent above the leve.
of 1949
Total privately held bank de,
posits and currency increased by
$6.4 billion, reaching sits billior
by the end of the year.
Personal income, at an annus
rate of $233 billion in the f1na
quarter of 1850, was IA per cen
greater than a year earlier, ane
more than 8 per cent above thu
second quarter of 1850. 49,.
Consumption expenditures il
the second half of the year fal
surpassed those of any previous
period, nearing an annual rate
of 5000 billion. -.
Construction put in place II
1850 was % per cent higher thar
for the year 1949, and greater
than in any previous year. Tht
sharpest increase was in housing
A peak of 100000 new dwelling
units was started in May, and ap.
, proximately that level was main
, tanned through August.