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tSg 193*
tht« administration h*s fro?s the bSJgl&nln

pursued a

ti&n*d to promote full iHptftpMftt of our httaan «ad.
resoiiToes*

ftet continue § to he our volley•

the

pro-iuetlve r>o*«r of our worker» an*, our resource**, If fuller
u t i l l r e ' i , e&n rrovid* NB4 maintain 1 national ineows far
any 1
Aa. lm?>Qrtftnt factor that t1#t^rcsln#« w^«th^r *« shall
suee««6 or befelocfe#<1in our «n4»^ror to a t t a i n

full

ia#nt and a hl^rb X«v»l of ln©os# i i th* b«h»Tlor of
In t h i t eommsnlora carefMl attention must te# gi¥«n tos
(1) the MtAtiMMi ftxtfttlitg tmem th« ^rioan of rariotis
of eo^»o<ilti^i; (?) th# r»lntlon« bftt«*«n eoBno^lty pr
l«v«lt mi

th** lffv«l» of <!ftbt bur^«n« an^ co«tff{ (3) th# d i -

rect ion aua pAt« of wiTtstont of th© .-*•«*n«r^l t^rle* 1^T«1.

TO

further l t « fcroad objective the Adntnlstration has, therefor*
in |%i agricultural, lnrt««tri«ilf and non&t&ry programs n#e«s• a r i l y been ooneern*<3 'ot^ wtth the relation of t-

'lees of

of specific eo«moditt«® to MMil oth**r »n^ irtth the

In eonformity with t h l i p4UL*f9 th# ae&«tire« <wr5loyea at
S i m t l » t B H f i t the needs of that tine.
M

A ytar ago

there *«s ground for concern th-1 & too raaiA rime In the
prices of <?OH» eomaioiiitlee v«s encourarlnc a.




-s During the past six months, on the other hand, the general
price level and industrial activity have been declining.
Government policy .must be directed to reversing this deflationary trend.
This does not mean that all prices should advance, nor that
the rise should be

rapid.

Prices of different groups of pro-

ducts must b© brought into balanced relations to one other.
0021© prices and some costs are still too high to promote that
balanced relationship between prices that is necessary for sustained recovery.

Continued high prices of many of the commodities

not subject to highly competitive market forces intensifies the
downward pressure on all other prices. Those industries that
have maintained prices and curtailed output should seek the
restoration of profits through increased volume rttfeeff than
through restricted output.
When prices are control]ed through monopolistic practices,
it is the obtious duty of government

to apply those

remedies

trat the law provides.
The prices of some items are etill at the highest levels
reached in 1937; some are ever> higher than in 1929.
prices sharply curtail sales t\,ere is real danger.

' l e high
ain
This is

shown by our recent experience with housing. A year ago there
was a serious shortage*

i e had u used productive resources
f

ample to overcome %bt shortage. Yet all the major elements




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of

WHOLESALE PRICES OF SELECTED BUILDING MATERIALS
PERCENT

I

1929=100

PER CENT

100
90
80
70



1929

1930

1931

1932 1933

1934 1935

1936 1937




3®

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' 4

3

.