We cannot afford to waste idle hours and empty plants while awaiting the end of the recession.  We must show the world what a free economy can do—­to reduce unemployment, to put unused capacity to work, to spur new productivity, and to foster higher economic growth within a range of sound fiscal policies and relative price stability.

I will propose to the Congress within the next 14 days measures to improve unemployment compensation through temporary increases in duration on a self-supporting basis—­to provide more food for the families of the unemployed, and to aid their needy children—­to redevelop our areas of chronic labor surplus—­to expand the services of the U.S.  Employment Offices—­to stimulate housing and construction—­to secure more purchasing power for our lowest paid workers by raising and expanding the minimum wage—­to offer tax incentives for sound plant investment—­to increase the development of our natural resources—­to encourage price stability—­and to take other steps aimed at insuring a prompt recovery and paving the way for increased long-range growth.  This is not a partisan program concentrating on our weaknesses—­it is, I hope, a national program to realize our national strength.

II.

Efficient expansion at home, stimulating the new plant and technology that can make our goods more competitive, is also the key to the international balance of payments problem.  Laying aside all alarmist talk and panicky solutions, let us put that knotty problem in its proper perspective.

It is true that, since 1958, the gap between the dollars we spend or invest abroad and the dollars returned to us has substantially widened.  This overall deficit in our balance of payments increased by nearly $11 billion in the 3 years—­and holders of dollars abroad converted them to gold in such a quantity as to cause a total outflow of nearly $5 billion of gold from our reserve.  The 1959 deficit was caused in large part by the failure of our exports to penetrate foreign markets—­the result both of restrictions on our goods and our own uncompetitive prices.  The 1960 deficit, on the other hand, was more the result of an increase in private capital outflow seeking new opportunity, higher return or speculative advantage abroad.

Meanwhile this country has continued to bear more than its share of the West’s military and foreign aid obligations.  Under existing policies, another deficit of $2 billion is predicted for 1961—­and individuals in those countries whose dollar position once depended on these deficits for improvement now wonder aloud whether our gold reserves will remain sufficient to meet our own obligations.

All this is cause for concern—­but it is not cause for panic.  For our monetary and financial position remains exceedingly strong.  Including our drawing rights in the International Monetary Fund and the gold reserve held as backing for our currency and Federal Reserve deposits, we have some $22 billion in total gold stocks and other international monetary reserves available—­and I now pledge that their full strength stands behind the value of the dollar for use if needed.