Evening star., 1953-04-21
Nj. Humphrey Speaks Sense

"H. SsU"p"C/ SpSONS SSUSS
Secretary Humphrey made genuine con-
tribution toward setting American economic
thinking in a sound and proper perspective in
his address before the Associated Press lunch
con in New York.
There is no reason, the Secretary said, for
America to fear peace. It Is strange indeed that
such words need even be spoken but it has been
true in recent weeks that the threat" of a
cease-f1re in Korea and the "peace offensive"
that seems to be emerging from Moscow have
created peculiarly nervous psychology about
the economic future.
1t is not strange, of course. that change
from war to peace. or vice versa, should have
temporarily unsettling effect. For nearly three
years now we have directed a great portion of
our industrial effort to supporting a war in
Korea while rebuilding the military establish
mentS of the United States and Of friendly
nations. The actual spending for these 'pur-
poses is just now reaching it's planned peak.
Admittedly, this effort has helped greatly in
creating full employment and keeping in mo-
ton the chain Of industrial activity which is
one measure of prosperity.
But it is true, also, that the financing Of
this effort has forced the imposition of higher
tax burden than ever before carried by the
imitation that has done serious damage to the
true value of the dollar. The weapons of war
are not constructive products in the sense of
bringing earnings in their wake and no national
economy can establish continuing good health
on the diversion OF large segment of its in
dustry to such pursuit. Continued too long at
too high level the result is economic exhaus-
tion rather than prosperity.
When Mr. Humphrey warned that our way
of life "can be lost just as completely by eco
nomic deterioration from within as by aggres-
sion from without" he was speaking simple
but basic truth. Very likely it is truth that
is well recognized by the men in the Kremlin
who have conSpired to direct this threat of
economic deterioration at the free world in
general and at the United States in particular.
1t has been war, or the burdens of preparing
against one, that has driven other nations to
destructive imitation and bankruptcy It has
been the economic strength which we have
built up during periods Of peace that has made
us strong enough to carry these loads, but there
is breaking point in any national economy
There has been no suggestion that an out
break of peace will result in sudden and COM
plete shutdown of defense industry or full
cessation of Government spending for defense
purposes. In fact, the planning is quite con-
trary and Mr.. Humphrey made it clear that the
intent of this administration is to establish and
to maintain sound posture of defense" over
whatever period may be required. He made it
clear, too, that there will be Government plan
ming for peace and that the national economy
will not suddenly find all the channels Of
Government participation in the market place
closed off,
The Government today is seeking to achieve
a sound currency. Its first line of attack is to
establish tighter control of Federal expendi-
lures, eliminate budget deficits and eventually
reduce taxation. 1t is a simple blueprint even
if it is not a simple task. If, with peace, it
might mean curtailment of certain industrial
activities, it could also mean the stimulation
and expansion of Others Certainly there is
sufficient f1exibility in an economy as gigantic
as our own to accommodate such transition
and, eventually, to profit by it.