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February 15, 1951. The Honorable Karren 0. Magnuson, United S U U s Senate, ltehiafften 25, i>. 0. Dear Senator Matfriusont joclosed is a copy of a Litter to Mr. George fc. Bird of Spokane, Washington, which I wrote in reply to hie letter to you of January 30. I hope ay handling of this m t t a r is satisfactory to yea. Sincerely, K. S. Lccles Enclosure WiFTj Thiamins you ««y not ll l T J V ^ th J lnt at(3n the full test of mj * " ° Feoneelc Report ae U w Presict«tt« G n o m i c Pre#r« 1 « w c l o s U * » copy of it fcerevith. Mr. omorm Bird* SemtnHMuMnri International »od Carrier*' Ivtildina Id* Third Avecwe, SpotaEiej. Hullluifi.Tiiim» Dear -*r. Bird* Svaatw m&mmoa fcea referroci your letter to a* far reply. I appreciate learning your point of view about the natter of longer wjrfcin*: boure that X dlacuased 1a taatlacay before the Joint Com* nittee oo the iSsooanU l^orU I M enclosing • asrteed copy of *Qr teetlaonor » that you aay see exactly what X said since in aaagr lartumii newspaper iiporti are lacoapleta* Xf the problem in yamr locality i« ana of lack of e^plny» mm% opportuaities, X can m o wtiy you would think a proposal to work longer hours would bo iBapproprlato* However, in tl» nation a» a aaploynaot la alone to tbe sfactleablo l i o i m and there an icrloui shortages for aaay typaa of akillod labor. At the aane tine, to- flatloaary pressures are wy strong and the coat of living and prions p ^ U j aro rising rapidly. The basic reason for tbie situation la the rapidly exploding defenee prvpnm which in the period ahead will plaoo an laoreaslngly heavy strain «i tha ooantry *nd sill retire full utilisation of ofory bit of industrial capacity and iiisi'-ippaei1 available. As you tosow, the wsrtasrs who asks tasks* guns, and other defense products as well as tha wm in the earned forosa oust be paid and oust be provided villi consiasar goods* itt tfco nana tins. tbeaa •j-.vxiesrs and saato^rs of the arnad fbroes do not produce anytfcdm: fwr oonsmsesn to biqr. The inevitable result la that them la nam 1mm In tha beads of oonsia*rs than thsra are goods to bey. Xn bidding against each other for tfes lisdtod supply of fsods, prices era driven Mr, Oeorgsti.Bird P*«e 2 The only wsy to solve this banic problem is to reduce incooe* rally by higher taxes, curtail buying on oredit, increase personal savings, and at tha a«ae tiae, expand the supply of civilian goods aa wuoh aa possible by everyone working harder and longer hours* A UU hour wolit soak will halp to add to sup* plioa and if it is paid for at straight tins it will not add to ooste and pricea* If tha longer hours ara paid for at preadfue rates, honour, thay will rsiaa ooata and by increasing incases were than output is insroasod raise prices generally. If by longer hours, highar taxes, and other m u m we oan hold down the oao t of living, everyone will be better off* Workers especially will bo better off because they always lose when living costs rise sharply* They lose not only because their wages can not rise as fsst as prises but also because their pensions and savings become worth loss* I realise this sort of progras requires heavy sacrifices *nrf that these sacrifices snst be shared by everyone, not only by labor* That Is why I an also in favor of a heavy tax on excess profits. My position nay appear to you to be contrary to the Interests of labor but I assure you that X believe ny progfrsw is acre to the advantage of labor generally than it is to west other groups. I hope that you will analyse ay recoosiendatlocui in this emergency period in the li^ht of all the facto and in the light of tsy deep concern for the welfare of the whole country* Sincerely yours, S* £oeles J&iclosurs cisw ipyj
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