U.S. Unemployment Moves C.I.O. To Seek State Action

Grey River Argus, 18 June 1949, Page 7

U.S. Unemployment Moves C.I.O. To Seek State Action

WASHINGTON, June 16.

A delegation comprising leaders of the Congress of Industrial Organisations asked President Truman’s Council of Economic Advisers to act to halt tine rising unemployment. They recommended a review of taxation to provide relief for low-income groups and to aid companies or industries already experiencing severe difficulties. The delegation urged the council to speak against proposals to curtail Federal spending on social programmes. They said that Federal housing, educational and health measures were necessary now, while private business was lagging, and that the Government programme might do much to check the present recession. DEPRESSION NOV/ “I regret that we are now in a state of depression; it is not a thing of the future; it is here right now”, said Senator Owen Brewster (Republican, Maine) to-day. “There are more than 4,000,000 persons unemployed now, and most Administration experts consider that the number will grow”. Senator Brewster said that Republican Senators would soon sponsor a 50,000,000-dollar public works relief planning programme) to meet the growing “Democratic depression”. The measure would not in itself provide funds for public works, but would merely finance the planning of a works programme, to be started when it was deemed advisable. The Wall Street “Journal of Commerce” says: “Many big companies with long and prosperous) histories are for sale. Many of these companies are worth several millions of dollars. They range from correspondence schools to steel mills and television companies. Funds that, a few months ago were available for such transactions have now either vanished or become over-cautious. Sellers will have to offer a new product or almost guarantee a market; they will then have to depreciate their land, plant, and inventory, and throw in their good name and perhaps some really top-flight management, in order to consummate a deal. A survey of industry which has just been completed showed the following reasons for the trend: (1) Companies whose profits have begun to decline and who realise that new capital is needed to prevent them from losing money are finding it increasingly difficult to interest new capital. (2) High taxes are forcing many businesses to liquidate. (3) Many businesses expect labour difficulties. (4) There is the utmost pessimism about future world political conditions. (5) Many marginal operators are experiencing considerable declines in sales”.