Evening star., 1961-05-25

challenge. Experience has
taught us that no one nation
has the power or the wisdom
to solve all the problems Of the
world or manage all its revolu-
tionary tideS-that extending
our commitments does not al
ways increase our security
that any initiative carries with
it the risk Of temporary defeat
that nuclear weapons cannot
prevent subverSion-that no
free peoples can be kept free
without will and energy of
their own-and that no two
nations or situations are ex-
Iactly alike.
Yet there is much we can do.
The proposals I bring before
you today are numerous and
varied. They arise from the
host Of special opportunities
and dangers which have be-
come increasingly clear in
recent months. Taken together
they mark another step for
ward in our effort as q people.
Taken together they will help
advance our own prograss, en-
4 courage our friends an d
strengthen the opportunities
for freedom and peace. I am
here to ask the help Of this
Congress and the Nation In
approving these necessary
measures.
ii. Economic and Social
i Progress at Home
The ultimate source Of our
national strength is the quality
and vitality Of our own society.
To sustain new efforts in world
affairs and space--to demon
strate to all the success Of free
dom's way-and to meet the
needs Of our own citizens when
we are assisting others--we reed
a growing. prosperous Nation.
I am not requesting additional
taxes to finance the very urgent
requests I am making today
flor our present tax structure
and resources are more than
sufficient to support them with
out q budget deficit If our econ
omy moves ahead. But we must
make full use Of our resources
human, scientific, and material
giving priority to our most
urgent national needs.
The first and basic task con-
fronting the Nation this year
was to turn recession into re-
covery. An affirmative anti
recession program, initiated
with your cooperation, sup
ported the natural forces IN the
private sector: and our economy
is now enjoying renewed conf
dence and energy. The recess
sion has been halted. Recovery
is under way.
But the task of Gbating un-
employment and achieving q
full use of our resources re-
mains a serious challenge.
Large scale unemployment dur
ling q recession is bad enough
ELarge-scale unemployment dur
ing recovery is intolerable to q
free economy. It Is q major
social evil; it is a source Of ma
tional weakness. It viii persist
even as the Nations output sur
passes previous achievements.
as I believe will be seen in the
coming months.
The Governme ent must
consider additional long-range
measure to curb this unemploy.
ment and increase our eco
nomic growth, II we are to
sustain our full role as world
leaders. Measures to aid the
unemployed, and to employ our
jobless youth usefully, will be
submitted shortly. I would
stress one measure In particu-
! lar today-a measure Of special
Importance in meeting the
occupational demands Of new
American leadership in space,
aid, trade and defense.
I am transmitting to the
Congress a new manpower de-
velopment and training pro.
gram, to train or refrain sew
eral hundred thousands work.
ers in new occupational skills
over a four-year period, in
order to replace those skills
made obsolete by automation
and industrial change with the
new skills which new processes
demand. Supplementing cur
rent public and private train
ing and education programs,
such a measure, including sub
sistence and relocation allow
ances for the long-term unem-
ployed, is a positive answer to
the challenge Of technology.
In addition, full recovery and
economic growth require sus-
tanned increases In investment:
and these in turn depend on
favorable tax credit conditions
as well as the enactment Of the
investment tax credit incentive
plan which I earlier submitted
to the Congress. The lending
capacity OF the Small Business
Administration should be in
creased; and Federal action
can help reduce the cost Of the
home-buyer's mortgage. Be-
yond this, the full financial
influence Of the Government
must continue to be exerted in
the direction Of general credit
ease and further monetary
growth while the economy is
recovering. Some further down.
ward adjustments in interest
rates, particularly those which
have been slow to adjust In the
recent recession, are clearly
desirable; and certainly to
increase them would choke off
recovery.
These expansionary measures
at a time Of unemployment,
unused capacity and stable
Il Y0T-ino IoxyaIa ara MT Initiation