Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-02-10


cession is a good thing for the
health Of our economy. They
would like you to believe that
a temporary curb on prosperity
is the way to halt runaway In
flation.
This kind of thinking Is like
believing q little bit Of war
might be beneficial.
Among the measures certain
of the experts advocated were
high interest rates and tight
credit control. These having
failed to work, prices contipu-
ing to rise and unemployment
growing-are now being ADAM
doned. These very people. who
are so vociferously opposed to
Government regulation Of free
enterprise. are. in effect, fool
in gwith the most dangerous
form of Government manipu-
lation.
Calls Measures Unjustified
There is nothing more dam
aging than the clamping down
of sudden brakes on an expand
ing economy which, without
adequate preparation. is jolted
again by a reversal Of momen-
tum. Failure Of the Govern
ment to understand this in
time and to intervene were con-
tributing causes to the develop
ing recession.
Business and industrial lead
ers, as much as the consuming
public, have been bewildered by
the uncertainty and confusion
of what the Government has
been trying to do. 1 know OF
no fundamental cause, nor even
q temporary condition in our
basic economy, to justify meas
ures taken by the Government
which have led to the IMPAIR
ment and decline Of public con-
f1dence. The fact is our re-
sources are so great and our
industrial capacity SO vast and
our skills so highly developed
that there is not the slightest
reason for concern about our
economic future. What does
concern us is that we are being
held back from the growth and
development Of our opportuni-
ties for continuing prosperity.
Certainly, the nuclear age
has opened vast new frontiers
and unlimited opportunity and
new challenges to our capaci-
ties and institutions. We should
act boldly and imaginatively
and not be the prisoners OF
statisticians and bookkeepers
whose outlook must be con-
fined to the balance sheet OF
today with no concern for to-
morrow.
/ have just complete a care
full study and analysis Of the
new budget now before Con-
gress. Having had a personal
hand in the preparation OF
eight budgets, I never lost
eieht of the desirability and
the necessity of achieving q
balanced budget. Prior to the
Communist invasion Of Korea
we did balance the Federal
budget and had a surplus to
apply to the national debt
But in trying to balance the
budget we must recognize the
Governments paramount obi
CATION to the people for theil
well-being.
In my opinion, we have
been paying too much atten-
ton to the need for balancing
the budget without taking into
account, at the same time, the
greater need of balancing the
human budget.
This means we must continue
and improve the welfare serv-
ices undertaken by the Fed
eral Government to provide fol
the growth and DEVELOPMENT Of
our future. Military measures
alone will never solve our basic
economic needs any more than
they alone can deter the Com
munist menace. We have beer
hearing and seeing a great deal
of the amazing strides the Rus
SLAMS have made in technical
and scientific Developments and
education. This was the result
of concentration in these areas
all for the purpose Of producing
military might and supremacy
This is all being done at the
cost of keeping the standard Of
living of the Russian people
down to a bare minimum.
We should be in a position
to meet the Russian challenge
AS we will-but we must also
maintain our standard Of liv-
ing while we strengthen our Sc
curity. Unlike the Russians, We
seek to apply Immediately the
benefits OF all scientific i'm
provements to the further ad-
vancement of the welfare of oul
people. In Russia such bene-
fits are confined to the improve
4. nnent of weapons of war and tc
q small privileged group Of
scientists and bureaucrats.
Disputed Stain
The Kremlin has always be,
lieved and skill believes that oul
economy sooner or later vii
break up.
When I was at Potsdam
Stain turned to me one da!
and said: when are you eoini
to have the next DEPRESSION
] said NEVER"
Stain retorted "Oh, you vii
have one. as you 60 along, yol
always do" I again salt
"never."