Letters Concerning the OWMR Advisory Board's Report on the Guaranteed Wage.

[Released March 8, 1947. Dated March 7, 1947]

To the Chairman of the Council of Economic Advisers:

My dear Dr. Nourse:

The Advisory Board of the Office of War Mobilization and Reconversion has transmitted to me the Report on the Guaranteed Wage. In its letter of transmittal the Board said, "The Report represents a major contribution to the sum of knowledge in this field and deserves serious consideration by Government, labor, management and the public."

Although the Board pointed out that guaranteed wage plans should not be the subject of legislative action, it did make clear the responsibility of the Government for maintaining a continuing study of the guaranteed wage and for supplying data and information to those interested in wage guarantees.

Accordingly, I request that the Council of Economic Advisers study the economic implications of the guaranteed wage, particularly as a device for helping to stabilize employment, production, and purchasing power. This study should consider existing legislation in the fields of social insurance, minimum wages, fiscal and tax policies, and other laws that affect the inauguration or operation of guaranteed wage plans.

Since there are particular functions which other Federal agencies can best undertake to provide current information on guaranteed wage plans and advice concerning their applicability and operation, I am also requesting the Secretary of Commerce and Secretary of Labor to assume certain responsibilities. Copies of these letters are enclosed.

Very sincerely yours,

HARRY S. TRUMAN

[Honorable Edwin G. Nourse, Chairman, Council of Economic Advisers, Washington D.C.]

To the Secretary of Commerce:

My dear Mr. Secretary:

When we discussed the Report on the guaranteed wage study made to me last month by the OWMR Advisory Board, you expressed an interest in providing industry with current information on wage guarantees in relation to the stabilization problems of various industries. This will be a useful service and the Department of Commerce should undertake this responsibility.

I am also asking the Secretary of Labor to continue to survey guaranteed wage plans and to make data on the various types available to other Government departments and agencies and to the public. In addition, the Council of Economic Advisers is being asked to study the economic implications of the guaranteed wage.

Very sincerely yours,

HARRY S. TRUMAN

[The Honorable The Secretary of Commerce, Washington, D.C.]

To the Secretary of Labor:

My dear Mr. Secretary:

The work so far done by the Department of Labor has contributed greatly to the value of the guaranteed wage study recently transmitted to me by the OWMR Advisory Board.

The interests of the general public and of labor and industry will be served if the Department of Labor continues the compilation of information on guaranteed wage plans, and makes its findings available. Accordingly, I ask you to assume this responsibility.

I am also asking the Secretary of Commerce to provide industry with current information on wage guarantees in relation to the stabilization problems of various industries, and the Council of Economic Advisers to study the economic implications of the guaranteed wage.

Very sincerely yours,

HARRY S. TRUMAN

[The Honorable The Secretary of Labor, Washington, D.C.]