Truman Claims U.S. Prosperity Is 'Temporary'

WASHINGTON, July 21--President Truman told the nation today that its "unprecedented prosperity" now is based largley on "temporary props."

"As they weaken," he declared, "we shall need to make many basic readjustments"--wage and salary increases "in some cases," lower prices "in the numerous instances where profit margins permit or where future profits would be better protected, by assuring larger volume through lower prices," now social legislation, and restoration of some wartime government controls.

The President cautioned that the adjustments "must be made before the lack of them produces serious unemployment and business decline." He added that "adjustment through recession or depression is tragic, costly, and wasteful."

The chief executive's statement was sent to Congress in the form of a midyear economic report under the 1946 employment act but it was addressed to the general public too. It was drafted with the help of the council of economic advisors, members of the cabinet and heads of government agencies.

Mr. Truman reported civilian production now at a record rate of $225,000,000,000 a year and civilian employment at an all-time peak of more than 60,000,000.