APRIL 25, 1947
"NOTES FOR MR. CONNELLY (only copy)
"At Cabinet meeting today, the following subjects were discussed:
"(1) Telephone Strike. Secretary Schwellenbach announced that 'We have started anew,' have three sessions going today, 'we'll keep trying.' The President stated he had told the press the matter is being handled by the Department of Labor.
"(2) Price Situation. Secretary Harriman thinks the program is moving along nicely; that the President started his move at the psychological time; that more goods are becoming available and will increase now with the big industries reaching settlements with labor, etc. Secretary Snyder mentioned as an interesting point that everyone is giving the President credit for the accomplishment; he mentioned the ads, etc., saying 'Mr. President, we are with you,' etc.
"(3) Budget Hearings on the Hill. Secretary Krug commented on his budget slash. Secretary Harriman stated he has been taking the lead for the State Department on the Information budget which he is sure the House will eliminate. He thinks the situation important and that the President and General Marshall should personally take a hand. Secretary Schwellenbach mentioned that the Senate subcommittee has agreed to put back about one-third of the House cut in his appropriation and pointed out that Senator McCarran has been cooperating with him. Secretary Anderson said Congress will cut the REA appropriation by about $125 million. This may bring political repercussions on the part of the farmers. The Attorney General stated his department seems to be faring well with appropriations. The Assistant Postmaster General made the same statement. He did point out that the slight cut increased over past years. Most of the increase is in the 285 large post offices, but he thinks they can get along; if not, a deficiency can be brought out later.
"At the close, Dean Acheson read a telegram from Clayton, pointing out the serious food situation in France. It was agreed the Government should not re-enter the wheat market just now but that some corn might be purchased. The telegram was turned over to Secretary Anderson and he and Secretary Harriman will look into the possibilities.
"/s/ JRS
"JOHN R. STEELMAN"
CABINET MEETING, APRIL 25, 1947
THE PRESIDENT
Asked Labor what he knows about telephone strike.
LABOR
Thinks strike will collapse over weekend.
THE PRESIDENT
Asked Krug about the coal mine situation.
KRUG
Has forwarded a report to the Pres. on safety situation coal industry is the worst of any industry with respect to safety. Will be damned by Lewis and by operators - for report but it is objective and factual. Predicts we will have a coal strike on June 30.
ANDERSON
Is faced with milk price situation in New York - Dewey is taking side of dairy owners. Anderson feels that price should be reduced - but warned that there would be trouble. Producers threaten to exert violent protests if any price cut.
THE PRESIDENT
Told Anderson to go ahead and make the price cut.
HARRIMAN
Visited in Wall St. yesterday and found resentment against those industries which have failed to adjust prices in accordance with Pres. request.
SNYDER
Change in revenue is not a mis-guess. The variance of yield with estimates caused by the earnings which have increased over what was anticipated. Failure of industry to adjust prices in accordance with President's request -
ATTY GENL
Justice appropriations will be cut 3%.
HARRIMAN
Will cut CAA considerably - will be forced to close field offices set up to aid small business.
ANDERSON
Thinks we should get a policy with respect to cuts in appropriations. Thinks we should not stand by and take the cuts without a fight.
THE PRESIDENT
Agreed.
CLARK
Suggested his dept. look into the price of leather as shoes, etc., are a way out of line on prices.
THE PRESIDENT
Agreed.
FORRESTAL
Suggested that subcommittee - Commerce - Treasury - State - and pres. of World Bank make a survey as to where we are going and how far on loans to European countries.
ACHESON
Such a study is now being made by State Dept.
PATTERSON
Salary re-adjustments in Dept. are discriminatory. Civilian personnel in higher brackets not being affected. Congressional restrictions and Civil Service rules hamper the possibility.