The Second War Powers Act has recently been extended by the Congress for six months instead of for a year.  It will now expire, unless further extended, on June 30, 1946.  This act is the basis for priority and inventory controls governing the use of scarce materials, as well as for other powers essential to orderly reconversion.

I think that this Administration has given adequate proof of the fact that it desires to eliminate wartime controls as quickly and as expeditiously as possible.  However, we know that there will continue to be shortages of certain materials caused by the war even after June 30, 1946.  It is important that businessmen know now that materials in short supply are going to be controlled and distributed fairly as long as these war-born shortages continue.

I, therefore, urge the Congress soon to extend the Second War Powers Act.  We cannot afford to wait until just before the act expires next June.  To wait would cause the controls to break down in a short time, and would hamper our production and employment program.

(d) Small business and competition.

A rising birth rate for small business, and a favorable environment for its growth, are not only economic necessities but also important practical demonstrations of opportunity in a democratic free society.  A great many veterans and workers with new skills and experience will want to start in for themselves.  The opportunity must be afforded them to do so.  They are the small businessmen of the future.

Actually when we talk about small business we are talking about almost all of the Nation’s individual businesses.  Nine out of every ten concerns fall into this category, and 45 percent of all workers are employed by them.  Between 30 and 40 percent of the total value of all business transactions are handled by small business.

It is obvious national policy to foster the sound development of small business.  It helps to maintain high levels of employment and national income and consumption of the goods and services that the Nation can produce.  It encourages the competition that keeps our free enterprise economy vigorous and expanding.  Small business, because of its flexibility, assists in the rapid exploitation of scientific and technological discoveries.  Investment in small business can absorb a large volume of savings that might otherwise not be tapped.

The Government should encourage and is encouraging small-business initiative and originality to stimulate progress through competition.

During the war, the Smaller War Plants Corporation assisted small concerns to make a maximum contribution to victory.  The work of the Smaller War Plants Corporation is being carried on in peacetime by the Federal Loan Agency and the Department of Commerce.  The fundamental approach to the job of encouraging small concerns must be based on: 

1.  Arrangements for making private and public financial resources available on reasonable terms.