On the contrary, the record of economic stabilization during the war and during the period of reconversion has been an outstanding accomplishment. We know, however, that nothing is as dangerous as overconfidence, in war or in peace. We have had to fight hard to hold the line. We have made strenuous efforts to speed reconversion.

These five measures together form a just and equitable whole. I would not recommend a national service law unless the other laws were passed to keep down the cost of living, to share equitably the burdens of taxation, to hold the stabilization line, and to prevent undue profits.

The price for civilization must be paid in hard work and sorrow and blood. The price is not too high. If you doubt it, ask those millions who live today under the tyranny of Hitlerism. Ask the workers of France and Norway and the Netherlands, whipped to labor by the lash, whether the stabilization of wages is too great a "sacrifice."

We have been reorganizing this program to make it a more effective, efficient instrument and that process will continue this year. But free world development will still be an uphill struggle. Government aid can only supplement the role of private investment, trade expansion, commodity stabilization, and, above all, internal self-improvement.

These "other activities" include more than 2 billion dollars for aids to agriculture and net outlays for the Commodity Credit Corporation-almost double the expenditures for the same purposes in prewar years. This increase is due mainly to expenditures for purposes of price stabilization and price support resulting from the war food production program.

This in itself was an anchor which held back the former restlessness. Also the Russia she loved so was gone as a practical and possible entity and only a memory of a past devotion remained. Therefore, both marriage and the Revolution brought about a stabilization of feelings and a concentration as well. There was less possible diversion and this brought a mental calm and satisfaction.

In the conferences which we have held and are holding with the leaders of other nations, we are seeking four great objectives: First, a general reduction of armaments and through this the removal of the fear of invasion and armed attack, and, at the same time, a reduction in armament costs, in order to help in the balancing of government budgets and the reduction of taxation; second, a cutting down of the trade barriers, in order to restart the flow of exchange of crops and goods between nations; third, the setting up of a stabilization of currencies, in order that trade can make contracts ahead; fourth, the reestablishment of friendly relations and greater confidence between all nations.

The organization of these institutions will undoubtedly take some time, and it is unlikely that their operations will reach any appreciable scale before the beginning of the fiscal year 1947. Of the 2,750 million dollars required for the fund, 1,800 million dollars will be provided in cash or notes from the exchange stabilization fund established under the Gold Reserve Act of 1934.

Now, with the surrender of our enemies, economic stabilization requires that policies be directed toward promoting an increase in supplies at low unit prices. We must encourage the development of resources and enterprises in all parts of the country, particularly in underdeveloped areas.

Net outlays for the price stabilization, price support, and other programs of the Commodity Credit Corporation are expected to increase from about 750 million dollars in the fiscal year 1946 to about 1,500 million dollars in 1947.