Message to the Congress Transmitting the Cost of Living Council's Quarterly Report on the Economic Stabilization Program.

To the Congress of the United States:

I am herewith submitting to the Congress the most recent Quarterly Report of the Economic Stabilization Program, covering the period January-March, 1973.

This report indicates that during this quarter our economy was making strong, impressive gains. Our national output grew at an annual rate of $43 billion. Some 600,000 more men and women obtained jobs. Real per capita disposable income--what people have left to spend after paying for taxes and adjusting for inflation--continued to rise, reaching a record high.

During this same period, while America's rate of inflation was lower than other major industrial nations, it is also clear that the rate was far higher than it should have been. There was an unexpectedly rapid increase in prices during the quarter, primarily in agricultural products.

The acceleration of price increases during the quarter led, in part, to my actions on June 13 to impose a price freeze for a maximum of 60 days. This freeze will be followed by Phase IV, a system of controls which will be designed to curb our recent bout of inflation while also preserving the gains we have made in other sectors of our economy. My ultimate goal--a goal I believe we can and must meet--is to return this country to a strong and free market system.

RICHARD NIXON

The White House,

July 11, 1973.