White House Press Release, Executive Order Number 9697

my #517 IMMEDIATE RELEASE FEBRUARY 14, 1946 EXECUTIVE ORDER #9697 PROVIDING FOR THE CONTINUED STABILIZATION OF THE NATIONAL ECONOMY DURING THE TRANSITION FROM WAR TO PEACE By virtue of the authority vested in me by the Consitution and statutes of the United States and particularly by the First War Powers Act of 1941, the Second War Powers Act of 1942, as amended, and the Stabilization Act of 1942, as amended, and for the purpose of maintain- ing the stabilization of the economy in the present omergency, it is hereby ordered: 1. For the duration of the existing emergency, all departments NARA and agencies of the Government shall, in any matter affecting the stabilization of the economy in which they have discretion in the use of their powers, exercise such discretion in such manner as will best promote the continued stabilization of the economy. It is the policy of the Government, in order so far as possible to prevent price in- creases, that there be prompt and firm enforcement, during the present emergency, of Government controls over scarce materials and facilities. 2. (a) Notwithstanding the provisions of Executive Order 9599 of August 18, 1945, as amended, and of the regulations issued there- under, the Price Administrator shall promptly provide for the adjust- ment of price ceilings in any case in which he finds that an industry is in a position of hardship as a consequence of an approved increase in wages or salaries, as defined herein. An industry shall be consid- ered to be in hardship if, after taking the entire amount of such wage or salary increase into consideration, the Administrator finds that the industry's current ceiling prices will leave it in an overall loss position or in an earnings position requiring adjustment on the basis provided in this section. (b) The adjustment to be provided shall be such as, in the jusgment of the Price Administrator, will be sufficient, for the twelve months following the adjustment, to enable the industry, unless operating at a temporary low volume, to earn an average rate of profit equal as nearly as may be to the rate of return on net worth earned by the industry in the peacetime base period applicable to that industry, and, in the case of commodities which are the subject of special statutory requirements, to a rate of return sufficient to satisfy such require- ments. Except to the extent necessary to reflect the abnormal costs and reduced earnings incident to temporary operation at low volume, in no case shall the Administrator provide an adjustment insufficient in amount to prevent loss operation at the time of the adjustment. (c) The Price Administrator shall develop standards of adjustment consistent with the purposes of this order to be applied in the case of an indsutry-wide action affecting an industry operating at temporary low volume. (OVER)