Ball, Joseph H., vice president, Association of American Ship Owners Butler, Sally, director, General Federation of Women's Clubs. Cowperthwaite, Ray, Cooperative Food Distributors of America. Galston, Clarence E., president, Motor Haulage Co.. 44 164 227 267 297 343 145 127 104 308 331 Heer, Leo J., vice president, National Retail Furniture Association.. 378 48 99 110 77 315 Kitchen, C. W., executive vice president, United Fresh Fruit and 92 Kline, Allan B., president, American Farm Bureau 234 McNary, William S., chairman, Council on Government Relations, 152 Miller, Ernest, Producers Marketing Association 258 Nathan, Robert R., chairman, executive committee, Americans for 285 Pollack, Dale, New London Instrument Co. 113 Reed, Otie M., Washington representative, National Creameries 379 Riggle, John J., secretary, National Council of Farmer Cooperatives. 232 105 311 Sligh, Charles R., Jr., president, National Association of Manufacturers. 169 Todd, Clarence D., Contract Carrier Conference, American Trucking 135 Ward, Gilbert L., National Retail Dry Goods Association. 336 260 270 Letters, statements, reports, etc., submitted by Ball, Joseph H., vice president, Association of American Ship Owners: 164 Members of association.. 166 Capehart, Homer E., a United States Senator from the State of Digest by sections of S. 753_ _. 29 Statement upon introduction of S. 753. 40 Digest by section of title VIII, Defense Production Act of 1950__ Letters, statements, reports, etc., submitted by-Continued Cowperthwaite, Ray, Cooperative Food Distributors of America: Ferebee, Dorothy B., president, National Council of Negro Women: Galston, Clarence E., president, Motor Haulage Co.: Statement. Milk and dairy products consumption, selected countries. Page 341 352 150 312 133 53 54 56 66 67 Kline, Allan B., president, American Farm Bureau Federation: Canned milk, condensed and evaporated: Exports and imports Dried milk: Exports and imports of specified countries. Statement. 1953 policies adopted by the official voting delegates_ McNary, William S., chairman, Council on Government Relations, 73 75 315 252 256 158 Nathan, Robert R., chairman, executive committee, Americans for 295 Reed, Otie M., Washington representative, National Creameries Milk cows and milk production on farms_ . 386 Prices paid by Commodity Credit Corporation under price sup- 387 Production of dairy products in principal exporting and producing Shecter, George O., Hillcrest Hospital, Inc.: Letter on tax amortiza- 161 Sligh, Charles R., Jr., president, National Association of Manufac- Digest by section of title VIII, Defense Production Act of 1950. 45 124 Todd, Clarence D., Contract Carrier Conference, American Trucking 142 Trigg, Ralph S., Acting Assistant Director for Production, ODM: 163 STANDBY ECONOMIC CONTROLS MONDAY, MARCH 2, 1953 UNITED STATES SENATE, COMMITTEE ON BANKING AND CURRENCY, The committee met, pursuant to call, in room 301, Senate Office Building, at 10:10 a. m., Senator Homer E. Capehart, chairman, presiding. Present: Senators Capehart, Bricker, Ives, Bennett, Bush, Payne, Goldwater, Maybank, Robertson, and Douglas. The CHAIRMAN. The committee will come to order, please. When the Korean conflict took us by surprise about 21⁄2 years ago, we were spending annually for military purposes a total of approximately $10 billion. Within a year, our defense budget increased fourfold, and actual military expenditures doubled. At the present time, we are spending for defense purposes alone almost $50 billion a year, or approximately $1 billion a week. Fortunately, it appears that from now on our expenditures for national defense should begin to decrease. But we cannot be unaware of the ever present Communist menace, which is a threat not only to our society, but to Christian civilization. It is against this background that we as your representatives in the Senate and you, as the representatives of labor-and you, as the representatives of industry-and you, as the representatives of the public, should consider this legislation. In keeping with my responsibility as chairman of the Banking and Currency Committee, I have introduced two bills-alternative approaches to combat inflationary pressures in the event of a grave national crisis. Briefly, one provides for an overall type standby authority with a small, key standby organization. The other would grant standby authority for a 90-day freeze on prices, wages, and residential rents, pending further action by the Congress. It is not necessary for me, I believe, in the light of my record in the Senate to state that I prefer no controls over our economy. However, I feel that I would be remiss in my duties as a Senator and as chairman of this committee if I failed to obtain the fullest consideration of what is the best and most practical way of taking care of what could be a disastrous economic dislocation in the event of a grave national emergency. We must give the same consideration to economic preparedness as we do to military preparedness. It is my considered judgment, and I know a majority of the members of this committee share my view, that if we prepare ourselves for a system of controls to combat a possible inflationary situation, we will do most to prevent the very situation which we all fear. In other words, a little economic peni 1 cillin, now, may save us from what might well be an economic plaguecome a war, God forbid. If there is no objection, I would like, at this time, to include in the record of the hearings a copy of the two bills, along with a sectional analysis of each, and the statement which I presented when each was introduced. (The documents referred to follow:) [S. 753, 83d Cong., 1st sess.] A BILL To provide standby economic controls, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Emergency Stabilization Act of 1953". DECLARATION OF POLICY SEC. 2. In spite of substantial increases which have occurred since the outbreak of the conflict in Korea, prices are now generally in normal relationship and the economy as a whole is relatively stable. It is the sense of the Congress that this stability can be maintained by the full and effective use of indirect controls barring unanticipated and adverse international developments. There is, however, the ever present possibility of further Communist aggression which may seriously jeopardize the American economic system unless proper legislative and organizational safeguards exist for the immediate imposition of economic controls. The necessity for such safeguards is emphasized by the speedy destructive force of modern warfare which allows no delay in the taking of Executive action to insure preservation of the well-being of the economy. The purpose of this Act is to provide the basis for such action in the event serious economic dislocations threatening the national security or welfare develop. It is the sense of the Congress that direct economic controls are incompatible with the American free enterprise system and should be invoked only if an emergency arises serious enough to threaten the economic well-being or national security of the United States and within the framework as far as practicable of the American system of competitive enterprise. But if such an emergency should develop, the President must have full powers to employ immediate economic controls to the extent necessary to meet the needs of the national security and welfare. In order that this Nation be prepared, it is the policy of the Congress that agencies be provided on a limited, standby basis, to be ready at all times to take appropriate action in the event of such an emergency. It is the further sense of the Congress that all other agencies of Government shall cooperate to the fullest extent in assisting these agencies in carrying out the purposes of this Act. It is the sense of the Congress that a standby program of the kind here authorized will provide for the national security, the general welfare, and implement the foreign policy of the United States in the event of serious economic dislocations and that the powers granted herein shall be used for those purposes. This program may require diversion of certain materials and facilities from civilian use to military and related purposes, and may require expansion and maintenance of productive facilities beyond levels needed to meet civilian demand. Such a program should insure against the ravages of inflation. Such a program should operate to assure against dissipation of defense appropriations in an economic emergency; to stabilize the cost of living for workers and other consumers and the costs of production for farmers and businessmen during such an emergency. Such a program should prohibit profiteering, hoarding, manipulation, speculation, and other disruptive practices resulting from abnormal market conditions or scarcities if a crisis develops. It should protect consumers, wage earners, investors, and persons with relatively fixed or limited incomes from undue impairment of their living standards in an emergency. It should safeguard against economic disturbances, labor disputes, interferences with the effective mobilization of national resources and impairment of national unity and morale. It should also protect the national economy in a time of crisis against future loss of needed purchasing power by the dissipation of individual savings. |