Defense needs will take a lot of steel, aluminum, copper, nickel, and other scarce materials.  This means smaller production of some civilian goods.  The cutbacks will be nothing like those during World War II, when most civilian production was completely stopped.  But there will be considerably less of some goods than we have been used to these past 2 or 3 years.

The very critical part of our defense job this year is to keep down inflation.

We can control inflation if we make up our minds to do it.

On the executive side of the Government, we intend to hold the line on prices just as tightly as the law allows.  We will permit only those wage increases which are clearly justified under sound stabilization policies; and we will see to it that industries absorb cost increases out of earnings wherever feasible, before they are authorized to raise prices.  We will do that, at any rate, except where the recent amendments to the law specifically require us to give further price increases.

Congress has a tremendous responsibility in this matter.  Our stabilization law was shot full of holes at the last session.  This year, it will be one of the main tasks before the Congress to repair the damage and enact a strong anti-inflation law.

As a part of our program to keep our country strong, we are determined to preserve the financial strength of the Government.  This means high taxes over the next few years.  We must see to it that these taxes are shared among the people as fairly as possible.  I expect to discuss these matters in the Economic Report and the Budget Message which will soon be presented to the Congress.

Our tax laws must be fair.  And we must make absolutely certain they are administered fairly, without fear or favor of any kind for anybody.  To this end, steps have already been taken to remedy weaknesses which have been disclosed in the administration of the tax laws.  In addition, I hope the Congress will approve my reorganization plan for the Bureau of Internal Revenue.  We must do everything necessary in order to make just as certain as is humanly possible that every taxpayer receives equal treatment under the law.

To carry the burden of defense we must have a strong, productive, and expanding economy here at home.  We cannot neglect those things that have made us the great and powerful nation we are today.

Our strength depends upon the health, the morale, the freedom of our people.  We can take on the burden of leadership in the fight for world peace because, for nearly 20 years, the Government and the people have been working together for the general welfare.  We have given more and more of out citizens a fair chance at decent, useful, productive lives.  That is the reason we are as strong as we are today.

This Government of ours—­the Congress and the executive both—­must keep on working to bring about a fair deal for all the American people.  Some people will say that we haven’t the time or the money this year for measures for the welfare of the people.  But if we want to win the fight for peace, this is a part of the job we cannot ignore.