Evening star., 1961-12-07

4 tration are now fully on the
side of righting this wrong. And
as we move forward in the
realm Of public policy, it is es-
sential that the private policies
of management and labor meet
this common obligation to hu-
man dignity.
II "a Fourth, to provide new
job opportunities in more mod
ern and competitive industries,
am renewing my recommended
ton to the Congress for tax
incentives to encourage capital
plant expansion and improve
ment.
l know this proposal has not
thus far enjoyed your support.
But I want you to know that I
am deeply convinced that this
proposal is as essential as the
other tax reforms submitted
that we must be able to produce
more goods more efficiently if
we are to aachieve a full and
lasting recovery.
To Seek Grants -in-Aid
60 Fifth, to add to our ar
Senal of built-in stabilizers in
the event of a recession, it is
my intention to ask Congress
in its next session for standby
authority, somewhat along the
lines of the bill introduced by
Senator Clark, to make grants
in-aid to communities for
needed public works. We do not
intend to go back to the days
OF leaf-raking-but neither do
we intend to go back to the days
of bread lines. There is no need
for this Nation to go through
another recession with large
pools of manpower in need of
work standing around in large
numbers of communities in
need of public improvements.
C6) Sixth and finally. we
must expand our job opportun-
tiles at home by expanding our
trade with the world.
II we cannot obtain new bar
gaining power to open up over
seas markets. our export in
dustries will wither-and Amer
ican labor will lose jobs. If
American businessmen cannot
compete from here for the
growing purchasing power of
the European Common Market,
many more will build their
plants over there-and Ameri-
can labor will lose jobs. If we
cannot find expanding outlets
for the goods of an expanding
economy, this nations growth
will be stifled-and American
labor will lose jobs.
In short. we are confronted
with a very basic decision: Are
we going to export our goods
and crops-or are we going to
export our capital and our
job opportunities? Are we go
ing to be the free worlds S
greatest merchant trader-or
merely its temporarily wealth.
est banker?
Nations Seek New Outlet
There is not time for timid
answers or tired solutions. The
European economic community
is closing the history books on
1000 years OF divisive and self
centered trading PHILOSOPHERS.
The new, once underdeveloped
nations are seeking new outlets
for their raw materials and new
manufactures.
No part of the world market
is any longer ours by default.
The competition grows keener.
Our need to cover military and
other expenditures abroad
through greater dollar sales
grows increasingly urgent. And
the Soviet Unions economic
and trade offensive grows
greater every year.
This is the challenge which
confronts our Nation in the
markets Of the world. America
must rise to this challenge
Wherever our goods are offered
in competition with the goods
of other nations-whether at
home or overseas-our goods
must be offered at competitive
prices.
This means that management
must intensity its efforts to in
crease efficiency and thus sta
DlllZe or reQuce unit cOStS ana
prices. This means that labor
must demonstrate its RESPONSE
bility in helping to keep over
all wage movements in line
with increases in productivity.
And this means that the Fed
eral Government must launch
a new effort to scale down the
barriers to our selling abroad.
When the current Reciprocal
Trade Agreements Act expires
in June. it must be replaced by
a wholly new and bold ap-
proach, as revolutionary as the
changes now going on in Eu-
ropean commerce. as broad as
our economic potential de-
mands and as challenging as
the crisis and opportunity now
facing American business and
labor.
IMPORT