Milford chronicle., 1926-07-02

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any business or it will be abandon
ed. If Uncle Sam could not make
enough money in the government
business, he would have to retire and
turn his shop over to king or a
soviet.
This thought was emphasized in a
recent address by Owen D. Young,
who helped Europe get on the finan-
cial basis of a going concern. In his
opinion, a highly profitable business
is not necessarily one opposed to
public interest, and it is not neces-
sary to apologize for concerns that
make profits, if they are honest and
render good service.
He asked why an Improbable con-
Germ should be permitted to use our
labor or our capital, neither of which
is so abundant that we can afford to
waste them.
This brings up the general Amer
lean idea, that we are a successful
people, that success is normal and
failure is abnormal. Success is
health; failure is disease"
A paralyzing government investi-
CATION into the operation of busi-
ness rendering a public service
merely because it makes good profits,
is not logical. Why not investigate
the business that fails to make pro-
fits and thereby wastes capital and
labor?
Mr.. Young said development of our
American industrial system to the
point where what is known as a
cultural wage" could be paid-that
is, wages above mere necessities of
life-is being considered by many
employers.
How far American captains of in
dustry can go on this line is not
known, but our country has discov-
cred that a period of general good
wages is the period of highest pros
perity. Continually we are coming
to understand that not brief periods,
but steady and general policy
should dominate the rate of wages.
So@
AS a successful business man, Sec
retary of the Treasury Mellon knew
that to sell manufactured product,
the price had to be one the public
could pay. He applied the same the
ory to taxes and the American peo-
pie are now having an object lesson
in the science of taxation under the
Mellon plan. By encouraging the
rich man as well as the poor man to
invest his money in productive enter
prise subject to a reasonable tax
rate, instead of investing it in tax
exempt bonds to escape a confisca-
tory tax rate, the federal treasury
has been swelled by amounts which
not even treasury officials estimated
could be secured under the new pro-
cedure. Lower taxes have released
hundreds of millions of dollars
which have been put to work to earn
more money. Immediately new tax
able income has resulted.
Every person in the United States
has felt the beneficial effect of this
policy. 1t should be conclusive evil
dence to municipal and state taxing
bodies that the best way to build up
local communities and secure addi-
tional tax revenue, is to increase the
volume of tax returns by low rates
which encourage new money to do a
larger volume of business, thereby
increasing the taxable assets. This is
much preferable to increasing the
tax rate on a diminishing volume Of
taxable property.
So@
THE UNITED STATES has been
accused" of being the richest ma
ton on earth. Some foreign COM
ment has been to the effect that mon
ey is all we care for. This is a mis-
taken viewpoint. The reason this ma
ton is not only rich, but great, is
simple-we all work over here. Not
only do we work, but we make every
thing else work for us. We enjoy
producing something useful.
Here in the United States we use
forty times as much mechanical
power as human power. In China,
Russia and India they use from two
to four times as much human power
as mechanical. That is the reason
America is rich and that is the rea-
son wages are high and opportunity
great in this nation. High production
per man tells the story Of our hign |
wages, short hours and modern con-
in every home. If the rest |
of the world would try to follow our
example there would be more happi- |
ness and less cause for wars and |
discord.
De@
AS TO TAXES, Ogden Mills says
we are confronted with three very
definite questions: First, whether
costs of state and local governments
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