San Bernardino Sun, 1 January 1947
Surprise Action Cuts Taxes, Ends Curb on Strikes WASHINGTON, Dec. 31 (AP) – President Truman sprang a major New Year’s eve surprise today by yielding many of the government’s war powers – an action which means a $1,500,000,000 tax cut and scrapping of the biggest strike control weapon. The White House bombshell took the form of a proclamation which declared that “hostilities of World war II” ceased as of noon today. The result of this legal recognition that the shooting was over was that 18 extraordinary laws died forthwith. The proclamation also meant that 33 others are doomed to die next June 30, or later.
About $1,500,000,000 a year will be knocked off the nation’s tax bill six months hence unless congress legislates otherwise by the lowering of emergency excise taxes on liquor, night clubs, jewelry, telephone charges and other items. The rates will go back to prewar levels.
The government’s power to seize strike-bound plants to get them going again died. No private plant may be seized henceforth under the Smith-Connally act, and in six months the coal mines must be returned to their operators whether a wage contract is readied or not.
FARM SUPPORT ENDS
And unless further legislation is passed the government’s programs to support the price farmers receive for many products will lapse at the end of 1948. Had Truman waited another day to issue his proclamation, these programs would have run throughout 1949.The move caught most of the capital by surprise. It sent federal officials scurrying to law books to recheck their powers.
One Republican, Representative Dondero of Michigan, voiced a common reaction from members of the decontrol-minded eightieth congress, about to convene: “The president seems to be putting in our program by proclamation, without waiting for legislation.”
PRESSURE ON CONGRESS
Senator Taft, Ohio Republican, a leading G.O.P. presidential aspirant, declared it “a great pleasure to see the president carrying out his idea of cooperation with congress and putting into effect a plank for which we contended in the election.” Actually Truman was pressuring congress for a quick decision on which wartime powers should be retained just as he was turning the heat on John L. Lewis and coal operators to reach a wage settlement covering the 400,000 United Mine Workers in federally-held soft coal pits.Besides the federal plant-operating authority, Truman’s action wrote finis, six months hence, to the entire Smith-Connally war labor disputes act, which provides a 30-day “cooling-off” period and a secret ballot before a union can call a strike. In other salient provisions, the proclamation:
1. Threw into doubt the Army’s big recruiting campaign, and apparently provided for putting a ceiling on Army and Navy civilian personnel. Brass-hat huddles occurred, but military spokesmen were sure of two things: the draft authority is undisturbed, and the active service of naval reserve officers continues.
2. Required that the treasury recall all its silver from war plants in six months apparently including the vast hoard used in the atomic bomb plant at Oak Ridge, Tenn., for electric power conduction.
3. Ended the tax-free shipment of playing cards and tobacco to the armed forces.
4. Required that any foreign brides of future G.I.s – those entering the service after today – must obtain immigration visas before entering this country.
5. Wiped out – as of June 30 next the ban on distribution of political campaign propaganda to members of the armed forces.
6. Put a three-year limitation on the life of the surplus property act and of the war assets administration, the surplus disposal agency. W.A.A. now plans to disband in less than two years.
7. Ended the import of foreign laborers such as Mexicans and Jamaicans who helped harvest huge war crops. They can enter now only under regular immigration laws.