Perhaps the most amazing thing about our economic progress is the way we are increasing our basic capacity to produce.  For example, we are now in the second year of a 3-year program which will double our output of aluminum, increase our electric power supply by 40 percent, and increase our steelmaking capacity by 15 percent.  We can then produce 120 million tons of steel a year, as much as all the rest of the world put together.

This expansion will mean more jobs and higher standards of living for all of us in the years ahead.  At the present time it means greater strength for us and for the rest of the free world in the fight for peace.

Now, I must turn to the debit side of the ledger for the past year.

The outstanding fact to note on the debit side of the ledger is that the Soviet Union, in 1951, continued to expand its military production and increase its already excessive military power.

It is true that the Soviets have run into increasing difficulties.  Their hostile policies have awakened stern resistance among free men throughout the world.  And behind the Iron Curtain the Soviet rule of force has created growing political and economic stresses in the satellite nations.

Nevertheless, the grim fact remains that the Soviet Union is increasing its armed might.  It is still producing more war planes than the free nations.  It has set off two more atomic explosions.  The world still walks in the shadow of another world war.

And here at home, our defense preparations are far from complete.

During 1951 we did not make adequate progress in building up civil defense against atomic attack.  This is a major weakness in our plans for peace, since inadequate civilian defense is an open invitation to a surprise attack.  Failure to provide adequate civilian defense has the same effect as adding to the enemy’s supply of atomic bombs.

In the field of defense production we have run into difficulties and delays in designing and producing the latest types of airplanes and tanks.  Some machine tools and metals are still in extremely short supply.

In other free countries the defense buildup has created severe economic problems.  It has increased inflation in Europe and has endangered the continued recovery of our allies.

In the Middle East political tensions and the oil controversy in Iran are keeping the region in a turmoil.  In the Far East the dark threat of Communist imperialism still hangs over many nations.

This, very briefly, is the good side and the bad side of the picture.

Taking the good and bad together, we have made real progress this last year along the road to peace.  We have increased the power and unity of the free world.  And while we were doing this, we have avoided world war on the one hand, and appeasement on the other.  This is a hard road to follow, but the events of the last year show that it is the right road to peace.