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CABINET MEETING - FRIDAY, AUGUST 17, 1945 c = I. President's Message to Congress. In addition to the legislative proposals embodied in Mr. Snyder's report of August 15, and the broad economic programs to which you will undoubtedly refer, such as the Full Employment Bill, social security, housing, scientific research and development, education, river valley development, etc., I suggest that you give consideration to the following in the preparation of your message to the Congress: A. Strengthening of Regular Departments of the Government. 1. Stress need for reorganization powers to strengthen regular departments of the Government so that they are prepared for postwar functions. 2. Pave way for supplemental appropriations for fiscal year 1946 and such enabling legislation as may be necessary to enable regular departments of the Government to pull their weight on reconversion and postwar problems. Such need is particularly evident in Departments of Commerce and Labor. B. Wages. 1. Provision for dismissal wages - two weeks' pay or scaled dismissal pay proportionate to seniority. 2. Announce the administration wage policy for the reconversion period. This policy should include the following: a. An immediate increase of at least 10% in wage rates to take care of the difference between the Little Steel Formula and the cost of living index. This is justified without general increase in prices. b. Adjust hourly wage rates to maintain take-home pay of workers. C. Prices. 1. Price control and rationing must be retained on an economic basis and not on a calendar basis. 2. Announce administration policy firmly to maintain stabilization of prices and prevent inflation.