Steps To Prevent Hoarding And To Stabilise Prices

Wanganui Chronicle, 11 September 1950, Page 5

Steps To Prevent Hoarding And To Stabilise Prices

President Truman said that to ensure defence orders were given top priority he had issued an executive order today authorising the Government agencies to exercise the defence production powers contained in the Bill he signed yesterday empowering the Government to prevent the hoarding of essential raw materials and enabling the Government to cut down the production of non-essential civilian goods that used critical materials. Defence production powers would be co-ordinated by the chairman of the National Security Resources Board (Mr. Stuart Symington). The president also announced the creation of an economic stabillstion agency to hold prices and wages in check during a war or emergency or to impose controls when they were needed. President Truman said the only way to pay tor increased defence was the plain, simple, direct way—out of taxes.” The law now under consideration in Congress to increase corporation and individual income taxes by 5,000,000 dollars was only the “first instalment.” He urged further tax legislation as soon as possible. Guiding principle for wage-earners must be not to ask for wage increases beyond what was needed to meet the rise in living costs. More jobs would

be provided for women and older people. The Government did not propose applying mandatory ceilings at this time, but they would be imposed vigorously and promptly when the situation called for them. The President announced that in readiness for price ceilings he had signed an executive order today requiring every business to preserve records of prices and costs during the base period May 24 to June 24, in order to set the ceilings at faillevels. Undoubtedly further legislation would be needed I'ater.

“Right now there is work enough and responsibility enongh for all of us. We can and must submerge petty differences in the common task of preserving freedom in the world. Spurred today by the world-wide menace of Communist Imperialism, we can surpass every previous record” Leaders of Communist Imperialism had military forces at their command. Thay had shown they were willing to use those forces in open aggression. "The free nations have no alternative but to build up the military strength needed to support the rule of law in the world. Only in this way can we convince the Commusist leaders that aggression will not pay.”