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Story
October 6, 1950
Florida Labor Advocate
Tampa, Hillsborough County, Florida
What is this article about?
President Truman establishes Economic Stabilization Agency with wage-price board to control costs and support Korean War defense, without immediate invocation; delegates authority for materials allocation and urges anti-profiteering and steady wages.
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TRUMAN SETS UP WAGE-PRICE UNIT IN NEW AGENCY
Board Established In Step Towards Defense
WASHINGTON.-President Truman issued executive orders establishing an Economic Stabilization Agency, with a director of prices and wage board, in a step furthering the winning of the Korean war and national defense.
Mr. Truman said price and wage controls would not be invoked immediately.
The same executive orders delegated authority to allocate scarce materials, curb credit instalment buying, issue priorities and expand production.
Chairman W. Stuart Symington of the National Security Resources Board was designated to assist the president in coordinating the functions of the various departments.
As a basis for price control, Mr. Truman ordered all business and industry to preserve their records of prices and labor costs of goods and services for the May 24-June 24, 1950, period.
Stabilization of prices and wages will be under the direction of the administrator of the Economic Stabilization Agency. The wage board under his authority shall consist of three members each from organized labor, industry and the public.
Secretary of Labor Maurice J. Tobin was assigned the task of mobilizing labor supply and making arrangements to meet manpower requirements.
Mr. Truman, in issuing the orders, told the nation in a radio chat that "we must hold the cost of living steady and keep down the cost of defense items."
He urged taxation, including an excess profits tax, to pay for the defense program as it is developed.
On prices and wages, he said:
"In cases where price increases have already been made without being justified by higher costs, business men should reduce these prices immediately. I have been told about companies that have increased the prices of all their products-all the way across the board without corresponding increases in costs. That is just plain profiteering and should not be tolerated.
"For the time being wage increases should not be sought beyond what is necessary to keep wages in line with the cost of living."
Mr. Truman asked that present rent controls be kept in effect by action of local and state governments pending strengthening of the federal rent control law.
"What we gain in holding down other cost-of-living prices must not be lost by failure to hold down the cost of shelter."
Board Established In Step Towards Defense
WASHINGTON.-President Truman issued executive orders establishing an Economic Stabilization Agency, with a director of prices and wage board, in a step furthering the winning of the Korean war and national defense.
Mr. Truman said price and wage controls would not be invoked immediately.
The same executive orders delegated authority to allocate scarce materials, curb credit instalment buying, issue priorities and expand production.
Chairman W. Stuart Symington of the National Security Resources Board was designated to assist the president in coordinating the functions of the various departments.
As a basis for price control, Mr. Truman ordered all business and industry to preserve their records of prices and labor costs of goods and services for the May 24-June 24, 1950, period.
Stabilization of prices and wages will be under the direction of the administrator of the Economic Stabilization Agency. The wage board under his authority shall consist of three members each from organized labor, industry and the public.
Secretary of Labor Maurice J. Tobin was assigned the task of mobilizing labor supply and making arrangements to meet manpower requirements.
Mr. Truman, in issuing the orders, told the nation in a radio chat that "we must hold the cost of living steady and keep down the cost of defense items."
He urged taxation, including an excess profits tax, to pay for the defense program as it is developed.
On prices and wages, he said:
"In cases where price increases have already been made without being justified by higher costs, business men should reduce these prices immediately. I have been told about companies that have increased the prices of all their products-all the way across the board without corresponding increases in costs. That is just plain profiteering and should not be tolerated.
"For the time being wage increases should not be sought beyond what is necessary to keep wages in line with the cost of living."
Mr. Truman asked that present rent controls be kept in effect by action of local and state governments pending strengthening of the federal rent control law.
"What we gain in holding down other cost-of-living prices must not be lost by failure to hold down the cost of shelter."
What sub-type of article is it?
Historical Event
What themes does it cover?
Moral Virtue
Justice
Survival
What keywords are associated?
Economic Stabilization
Wage Price Controls
Korean War
National Defense
Profiteering
What entities or persons were involved?
Truman
W. Stuart Symington
Maurice J. Tobin
Where did it happen?
Washington
Story Details
Key Persons
Truman
W. Stuart Symington
Maurice J. Tobin
Location
Washington
Event Date
1950
Story Details
President Truman issues executive orders creating the Economic Stabilization Agency to manage prices, wages, and resources for national defense during the Korean War, emphasizing anti-profiteering, steady costs, and labor mobilization without immediate controls.