ECONOMIC FRONT

Evening Star, Issue 24294, 8 September 1942, Page 3

ECONOMIC FRONT

PRESIDENT ROOSEVELT’S PUNS DEMAND FOR LEGISLATIVE AUTHORITY (Rec. 12.45 p.m.) September 7. WASHINGTON, President Roosevelt, in a message to Congress, asked for specific legislative authority to stabilise living costs, including farm prices, to prevent economic chaos. “ When the cost of living spirals upward everybody becomes poorer,” he said. “At the same time the cost of the war is needlessly increased by many billions of dollars, and the national debt becomes unnecessarily greater. Indeed, prevention of spiralling in domestic economy is a vital part of winning the war itself. What is needed is overall stabilisation of prices, salaries, wages, and profits. That is necessary to the continued production of planes, tanks, ships, and guns at the present constantly increasing rate. I ask Congress to pass legislation under ‘ which the President will be specifically authorised to stabilise the cost of living, including the price of farm commodities.

“ I ask Congress to take this action by October 1. Inaction on your part by that date will leave me with the inescapable responsibility to the people to see to it that the war effort is no longer imperilled by the threat of economic chaos. In the event of Congress failing to act, and act adequately, I shall accept the responsibility and I will act. At the same time that farm prices arc_ stabilised, wages can and will be stabilised. This I will do. The President has powers under the Constitution and Congressional Acts to take measures necessary to avert a disaster which would interfere with winning the war.” The President continued; “We can rightfully expect full co-operation if the tax burden is fairly levied in accordance with ability to pay. This means that we must eliminate tax exemption interest on State and local securities. It means that we must recapture, through taxation, all war-time profits that are unnecessary to maintain efficient all-out war production. Next to a military and naval victory, a victory along the economic front is of paramount importance. Without it war production will be hindered and we would be allowing our young men now risking their lives in the air and on the land and sea to return to an economic mess of our own making.” “ The co-operation and self-restraint of the whole nation will be required; to stabilise the cost of living. Stabilisation cannot be maintained without heavy taxes on everyone except persons on very low incomes. If the vicious spiral of inflation ever gets under way the whole economic system will stagger and prices and wages will rise so rapidly that the entire production will be endangered. The cost of the war will rise beyond all present calculations. It will mean an uncontrollable rise in prices and wages which can in the raising of the over-all cost of living another 20 per cent. This would have a demoralising effect on the people, soldiers and civilians alike.”

GLOBAL WAR POUR mm COMBAT AREAS (fßeo. 1 p.ni.) WASHINGTON, Sept. 7. Iu a subsequent broadcast to the nation, President Roosevelt repeated part of his message to Congress. He said the nation must have more money for the war and people must stop luxury spending. He added: “The country needs a far greater share of our incomes for this global war, and it will cost the United States nearly 100,000,000,000 dollars in 1943.” Mr Roosevelt then referred to the four main areas of combat, and said: “ On the Russian front the Germans ■are still unable to gain the smashing victory which a year ago Hitler announced had already been achieved. Hitler has been unable to destroy a single Russian army. This has been, and still is, Hitler’s main objective. Millions of German troops seem doomed to spend another cruel, bitter winter on the Russian front. The Russians are killing more Nazis and destroying more aeroplanes and tanks than are being smashed on any other front. They are fighting not only bravely, but brilliantly. Despite setbacks, Russia will hold out.

“ In the Pacific area we have stopped one major Japanese offensive and inflicted heavy losses on their fleet, hut they still possess great strength. ‘‘ The Japanese seek to keep the initiative, and they will undoubtedly strike hard again. We musn’t overrate the importance of the successes in the Solomons, though we are proud of the skill with which these local operations have been conducted. At the same time w'e needn’t underrate the significance of our victory at Midway. “ In the Mediterranean and Middle East, the British, South, Africans, AusNew Zealanders, Indians, and others, including ourselves, are fighting a desperate battle with the Germans and Italians. The Axis Powers are fighting to gain control of that area and dominate the Mediterranean and Indian Ocean to gain contact with the Japanese navy. The battle is now joined, and we are well aware of our danger. But we sire hopeful of the outcome.

“ In the European area our aim is an offensive against Germany. There are at least a dozen different points at which attacks can be launched. You, of course, don’t expect me to give details of future plans, but you can rest assured that preparations are being made here and in Britain towards this purpose. The power of Germany must be broken on the battlefields of Europe.

“ Various people urge concentration on one or other of these four areas, although no one suggests that any one of the four areas be abandonpd. Certainly it couldn’t be seriously urged that we should abandon aid to Russia or surrender all the Pacific to Japan, or the Mediterranean and Middle East to Germany, or give up the offensive against Germany. The American people may be sure we shall neglect none of the four great theatres of war. Certain vital military decisions have been made. In due time you will know what these decisions are, and so will our enemies. I can say now that all these decisions are directed towards taking the offensive. Every week sees a gain in the actual number of American men and weapons in the fighting areas. These reinforcements will continue. This war will finally be won by co-ordination of all the armies, navies, and air forces of the United Nations operating in unison. This requires vast assemblies of weapons and men at all vital points.”