Statement by the President Upon Signing Bill Extending the Second War Powers Act.

I HAVE TODAY signed H.R. 4780 extending, for six months, certain titles of the Second War Powers Act. The continued exercise of these powers beyond December 31, 1945, although on a steadily decreasing scale, is absolutely necessary in the interests of reconversion.

The extension for only six months of the statute, and especially of those sections creating the priorities and allocations powers, will, however, not meet the full need. We know that our economy will be plagued with major war-born shortages six months from now, and that the Government must have the means of dealing with these shortages. There must, therefore, be further legislation to cover the period after June 30, 1946.

This further legislation should become law at the earliest possible date, so that industry and Government will know as far in advance as possible the laws under which they are to operate, and can plan accordingly. In the absence of specific legislation covering the latter part of 1946, the approach of June 30 will become an unsettling factor in the Nation's economy and may well be accompanied by hoarding and by a tendency to delay production and distribution until the date has passed. Any such tendency would seriously hamper reconversion and would add a new and dangerous inflationary factor to the many already existing.

I request, therefore, that the Congress consider and enact, at the earliest possible time, suitable legislation to extend the Government's power to deal with shortages.