Evening star., 1954-10-26

Fellow AIucTlCdllS-
To receive an award bearing
the name Of James Forrestal II
indeed a distinguished honor.
am deeply grateful to all OF you
7 was privileged to be asso-
ciated closely with James For
restal during the final years Of
his life. He was devoted to the
public good. There has been
no stauncher patriot nor any
one more far-sighted in per-
ceiving the evil designs Of Com
munist imperialism. At my first
meeting with him, during World
War II, he expressed his grave
wear that Communist Russia
would emerge from the war a.
q threat to individual liberty and
freedom. To these he was COM
pletely dedicated.
Central among the many con-
Germs Of his sweeping mind was
the great free economy Of Amer
lea. He knew that in peace and
war, this economy is the source
Of our military strength. He
knew that unless this economy
were kept healthy. strong and
expanding. there would be for
the free world neither victory In
war nor security in peace.
In the vitality Of this system.
James Forrestal had complete
faith. He did not mistakenly
think Of our economy merely In
terms of broad acres and mighty
industries, of railroads and ships.
mines and factories. Though all
these we have, he clearly saw
that it Is Americas people
farmers, teachers, shipbuilders,
scientists. executives, machin-
lists. truck drivers, all living un-
der a system that encourages
individualism-who are directly
responsible for the near miracle
Of our great productivity.
Skeptical Of Controls.
Consequently, he was skeptical
Of excessive governmental inter-
ference with our economy In
times Of peace. He well recog-
nized the need for the Govern
ment to prevent or correct mo-
nopolstic concentrations, as well
as unemployment and agricul-
tural dislocations. Yet he saw
just as clearly the evils of regi-
mentation.
His faith in America was
rooted in his conviction that, by
and large, and over the long pull,
we could and would cooperate,
one with another, for the benefit
Of all. He belitved that in an
America at peace, a combination
of private citizen and local and
Federal Government, operating
together under wise regulatory
laws and accepted practices,
would sustain our priceless lib
critics and rights, while pro-
ducing for each of us an ever
rising prosperity and standard
Of living.
OF this economy that so en-
gagged the study and interest of
James Forrestal, I shall speak
tonight. More specifically. I shall
speak Of certain functions that,
believe, our Government must
perform to keep our economy
growing, stable and strong.
It has been truly said that the
state of our economy is largely
a national state Of mind.
For 20 long years. somewhere
In the world there has been war
up until q few months ago.
Thus, for almost a generation,
tragedy and happiness waste
and plenty-foxholes and Jobs
- have been tightly joined in
peoples minds. Many came to
believe that these had to live
together or not at all - that,
without war. without the noun
famous demands Of the battle
field. modern Industrial America
would always overproduce, forc-
ing unemployment and a down.
ward economic spiral, ultimately
cascading all of us into the
terrible pit Of depression.
Attitude Stunted Growth.
AS war year succeeded war
year. this attitude toward our
Nations economy exacted a
heavy toll. It stunted growth. It
warped economic behavior. It
blighted confidence and discour-
aged needed investments that
thrive on confidence. Many of
our people were frightened into
grasping more for security and
protection than for new oppor-
tunity and a full life.
But in the past two years, there
have been heartening events.
They should release tremendous
economic energies and, for all of
us, open the door to q better.
happier future. For, in two years,
we have again demonstrated that
Americas prosperity does not
necessarily depend on wars sac
rifices.
Without war, our economy Is
working at near record levels.
Over SO million people have Jobs.
The number is steadily increas-
ing. The hours Of work are get
ting longer. Consumers are spend
ing at q higher rate than ever
before. Construction records are
being broken month by month.
Wage rates are at their all-time
peak. Weekly earnings in manu-
featuring are again on the rise.
Our people have more personal
income after taxes than ever be-
fore. Our national production
surpasses even the war peak Of
1914. It Is far above the levels
of 1945 through 1852.
We know that. II we act wisely,
before us is continuing expan-
sion, with a steady rise in the