take the responsibility. But when we started adding up the exceptics that would be necessary in order to prevent pirating of labor awar from war plants, et cetera, the exceptions almost ate up the exclusio

I don't know if I make myself clear. In World War II we exempted the employer of eight or fewer workers from all wage controls. By the time we got through excluding from the exemptions such things as tool and die shops, et cetera, we had over 64 exceptions to the exemption.

What we are doing now is trying to get out a single regulation that will go the limit of what we call self-administration, because that is what it amounts to. It is not really decontrol, because the little fe low will control it himself. He is not going to give away his business! just because the law says, "You are now free." I don't know whether there will be enough left after we get through taking out all the exclusions from the exemption to make it worth while having any exemption.

The CHAIRMAN. Are there any other questions?

Representative MCKINNON. There is one thing I don't believe is very well understood by the general public; that is your statement that says that your cost-of-living policy permits adjustments in wage rates to correspond with the changes in cost of living.

Now, these escalator clauses we hear so much about in the automobile industry are no different from that which you have in your regular policy. The difference is in the contract between manage-ment and labor or the relationship between employer and employee, is it not? The employer is still free to make these adjustments automatically in accordance with the schedule you set forth?

Mr. FEINSINGER. That is correct.

Representative MCKINNON. And he doesn't have to come to your Board to do it?

Mr. FEINSINGER. That is right. He just has to keep records, doesn't even have to make reports.

Representative MCKINNON. All industries can make cost-of-living adjustments that the automobile industry is making if they want to: is that right?

Mr. FEINSINGER. On the cost-of-living aspect; yes. On productivity we haven't yet developed a policy. There is an annual improvement factor in the General Motors contract embracing what is called the productivity factor. Sometimes it is called one thing and sometimes another.

Senator BENTON. Is that the 2 percent?

Mr. FEINSINGER. That is the 2 percent. A great many employers · want the same portion.

Senator BENTON. If you look at General Motors, as many do, 15the most brilliant and glistening jewel in the crown of private enter- 1 prise, it would seem to me it would be very helpful if your Board came out with recommendations in this field of the escalator clause.! Is that contemplated?

Mr. FEINSINGER. Well, I would rather not express an opinion again in advance of tripartite consideration.

Senator BENTON. I have no further questions, Mr. Chairman. The CHAIRMAN. That, Mr. Feinsinger, concludes the questioning.

On my own behalf and on behalf of the committee I want to comment you most highly on your presentation.

Senator BENTON. I join in that.

The CHAIRMAN. I think this prepared paper is one of the best that » have received. Let me say it is a credit to the law profession ich you represent. As one lawyer to another, I want to say it was ally a most excellent paper. We are grateful indeed for your esentation.

The next meeting of this committee will be held Wednesday morning 10 o'clock in room G-16 in the Senate wing. That is the Interstate mmerce Committee hearing room.

We shall then have a panel discussion on the nature and the magnile of the problems of mobilization and economic stabilization. The rticipants will be Thomas Blaisdell, of the University of Calirnia; Roy F. Foulke, of Dun & Bradstreet; Martin Gainsbrugh, the National Industrial Conference Board; Edwin G. Nourse, who a consultant economist in Washington, D. C.; Boris Shishkin, of the nerican Federation of Labor; Caroline F. Ware, professor, Howard niversity, school of social work, Washington, D. C.; and Donald oodward, of the Mutual Life Insurance Co. of New York.

(Whereupon, at 12: 40 p. m., the joint committee recessed, to reconne at 10 a. m., Wednesday, January 30, 1952, in room G-16, the pitol.)

ANUARY 1952 ECONOMIC REPORT OF THE PRESIDENT

WEDNESDAY, JANUARY 30, 1952

CONGRESS OF THE UNITED STATES,

JOINT COMMITTEE ON THE ECONOMIC REPORT,

Washington, D. C.

The joint committee met, pursuant to adjournment, at 10: 20 a. m., room G-16, Senate wing of the Capitol Building, Senator Joseph O'Mahoney (chairman) presiding.

Present: Senators O'Mahoney, Benton, Taft, and Flanders; Reprentative Patman.

Also present: Grover W. Ensley, staff director; and John W. Lehan, clerk.

The CHAIRMAN. The committee will please come to order.

The session this morning has been assembled according to the pracce of the Joint Economic Committee to make an objective search or facts and opinions.

The economic report of the President has been submitted to Coness. We have had several hearings, some of them public, with spect to the recommendations and the text, both of the President's port and of the economic review of the counsel.

The committee has arranged for open discussions of the report from dies and gentlemen who have gained destinction in the economic orld and whose opinions and analyses of the report will be of great ublic value.

This morning we have with us Dr. Edwin G. Nourse, consultant conomist in Washington, formerly chairman of the Council of Ecoomic Advisers; Dr. Thomas C. Blaisdell, Jr., of the University of alifornia; Dr. Donald Woodward, Mutual Life Insurance Co., New ork; Mr. Roy F. Foulke, of Dun and Bradstreet; Martin Gainsbrugh, f the National Industrial Conference Board, New York; Mr. Boris hishkin, who has not yet arrived but who is on his way, economist f the American Federation of Labor; and Dr. Caroline F. Ware, rofessor, Howard University, School of Social Work, Washingon, D. C.

I shall insert in the record at this point a brief biographical sketch f each of the participants.

(The biographical sketch of the participants is as follows:)

ARTICIPANTS IN THE PANEL DISCUSSION ON THE NATURE AND MAGNITUDE OF THE PROBLEM OF MOBILIZATION AND ECONOMIC STABILIZATION, JANUARY 30, 1952 BLAISDELL, THOMAS C., JR., economist, University of California; b. Pittsburgh, a.; student Alma (Mich.) College 1912-13 and 1914-15; Konigstadtische berrealschule, Berlin, 1913-14; B. A., Pa. State College, 1916; grad. New York

School of Social Work, 1922; M. A., Columbia University, 1922, Ph. D., 192 History teacher, Ewing Christian College, Allahabad University, U. P., Inda 1916-19; teacher, economics, Yenching U., Peking, Columbia University, 1925 asst. director National Resources Planning Board, 1939-43; War Producti z Board, 1942-44; director, Bureau of Plans and Statistics, Office of War Mobilize tion and Reconversion, 1944-46; chief, mission for economic affairs, with rank minister, London, England, 1945-47; Assistant Secretary of Commerce, 1949-7 director, Office of International Trade, 1947-48. Author: Federal Trade Con mission, An Experiment in Control of Business, 1932; Peking Rugs and Peking Boys (with C. C. (hu), 1924. Contr. to govt. bulletins, etc.

FOULKE, ROY A., business executive; b. New York, N. Y.; B. S. Bowdoin C lege, 1919, M. A. (honorary), 1939. With credit department, Liberty Nationa Bank, New York City, 1919-22; manager, bank service department, Nationa Credit Office, Inc., New York City, 1922-28; analyst, Paine Webber & Co., Ne York City, 1928-31; manager of specialized report department, Dun & Brad street, Inc., New York City, 1931-44; vice president, since 1944. Member edtorial advisory board, the American Journal of Economics and Sociology Author: Commercial Paper Market, 1931; Behind the Scenes of Business, 1955 1 Practical Bank Credit, 1939 (coauthor); the Sinews of American Commerce. 1941; Practical Financial Statement Analysis, 1945. Home: Bronxville, N. Y Office, New York City.

MARTIN R. GAinsbrugh, University of Rochester, 1924–1928; Columbia Criversity, 1929-1932. Business experience: Economic Analyst, Trade-Ways on dustrial consultants), 1933-1938. Chief Economist, National Industrial Co ference Board, 1939 to date. Additional activities: Adjunct Professor of Eco nomics, School of Commerce, Accounts and Finance, and Graduate School of Business Administration, New York University. Technical Advisor, Bureau of the Census and Bureau of Labor Statistics. Member, Business Advisory Coz mittee, Council of Economic Advisers; Hoover Committee on Governmest Statistics; Special Committee on Post Office Reorganization of the Citizens C – mittee for the Hoover Report; Economic Advisory Council, National Associatio of Manufacturers; Committee on Business Statistics, American Statistical Asso ciation; American Economic Association; American Finance Association: Par Beta Kappa; The Econometric Society; Secretary-Treasurer, Conference of Business Economists; Research Advisory Council, Credit Research Foundatie Recent publications: Productivity and Living Standard, 1949; Wages, Prices, Profits, 1949; Economic Expansion-Patterns, Problems, Potentials, 1950; De ; fense Economics: The First Year, 1951. (Co-author :) Studies in Income and Wealth, Volume 12, National Bureau of Economic Research, 1950; Pensions for Employees, Chamber of Commerce of the State of New York, 1950; Econon"} Effects of Section 102, Tax Institute, Inc., Princeton, N. J., 1951; Studies in L come and Wealth, Volume 14, National Bureau of Economic Research, 1951 Articles: What Price Economic Expansion, The Analysts Journal, Third Quarte”, 1950; Techniques of the Economic Expansionists, Purchasing, August, 1950, A Survey View of Business in 1951, The Commercial and Financial Chronicle, Thursday, January 4, 1951; Defense Spending's Impact Analyzed. The Ca troller, January, 1951; The World's Biggest Business, The Commercial and Financial Chronicle, Thursday, April 19, 1951; Business Holds Two Hands, Na¦ tional Furniture Review, June, 1951, p. 66; The Consumer Durable Goods P ture for The Coming Six Months, Finish, July 1951, p. 39; Inventories S High, New York Journal-American, August 14, 1951; What's Ahead for Bes ness in 1952?. The Management Review, December, 1951. Congressional he, ings: Joint Committee on the Economic Report, Testimony, February 16-17 1949; January 17-20, 1950; January 29, 1951; January 30, 1952. Local news papers: Mamaroneck Daily Times; New Rochelle Standard Star.

NOURSE, EDWIN G., economist; b. Lockport, N. Y., graduate Lewis Institute. Chicago, 1904; A. B., Cornell University, 1906; Ph. D., University of Chicago 1915. Instructor in finance, Wharton School of Finance and Commerce (T%) versity of Pennsylvania), 1909-10; professor and head department economics and sociology, University of South Dakota, 1910-12; same, University of A kansas, 1915-18; professor agricultural economics, Iowa State College, and che of agricultural economics section, Iowa Experimental Station, 1918-23; cùr a of agricultural division, 1923-29, director, 1929-42; instructor of economics the Brookings Institution, Washington; vice president Brookings Institution 1942-46; Chairman Council of Economic Advisers, Executive office of the Pres dent, 1946-49. Author: Agricultural Economics, 1916; Chicago Produce Marke.