The Washington times., 1931-06-03
PUBLIC WORK
CALLEDNEED
OF.NAT|ON
Government Control Of Liquor
Is Proposed by Publisher
as Source of New Revenue
by Universal Service

$4,000, 100000 promptly spent by
the Government in the employ
ment of labor would restore pros
perity.
Speaking over WABC and a
nationwide network of the Colum-
bia Broadcastirg System. he
urged the Government to borrow
that huge sum to relieve the eco
nomic situation, saying:
"This is not a time to reduce
the national debt through bur.
denSOme taxation and thereby
reduce prosperity.
Time to Increase Debt
cit is time to increase the
national debt and increase the
expenditure of the Government
in public works in the employ
ment of labor and thereby in
crease prosperity.
"Then out of prosperity to
pay off the debt"
If the Government desires fur
ther to increase its income, Mr..
Hearst said:
"Let it end this folly of pro-
hibitiOn which does not pro-
hibit and substitute Government
control of the manufacture and
distribution of alcoholic bever-
ages, and So secure for itself, on
the basis of Canada's excise in
come, an additional income of
a billion dollars a year."
Mr.. Hearst spoke from the
WABC studio at the invitation of
William S. Paley, president Of the
Columbia system, from II to 11:15
p. M, Eastern daylight saving
time. His address was broadcast
through 80 of the Columbia
chains affiliated stations.
Government Urged to Lead
Mr.. Hearst attributed the eco
nomic collapse to OvercapitaliZa-
tion and the failure of industry
to give labor an adequate share
of the increased profits that pros
perity brought.
AS to the cure for the sitla-
tion, he declared the Federal
Government should take the lead
in restoring confidence by acting
promptly to employ labor. He
said:
"a gigantic appropriation by
the Government, not a dole,
but for the employment of
vast amount of labor at the
prevailing rate of prosperity
wages, would not only stabilize
wages but would Immediately
set the machinery in motion
for the restoration of pros
perity; provided, of course,
that the Government EX-
PENDED the appropriation and
did not set ON it perpetuany
like a dGluded hen on a pOrce-
lain dOOrknOb."
Ability to Buy Needed
Mr., Hearst began his address
by defining prosperity, saying:
"The basis of prosperity is
the ability of the public to
buy. In other words, prosper
ity is based on the purchasing
power of the public. When
the public buys from the stores.
the stores buy from the fac
tories, the factories buy the
raw materials produced by the
farm and the mines.
"All these forms of activity,
employ labor, and the money
circuIates with profits to all
classes. We were in the midst
of such a prosperous period.
why did it not cOntinue?"
Here Mr.. Hearst asserted it was
not necessary to go to the war in
China and the silver situation in
India to find the reason, but that
the real reason sis right here at
home" Explaining that the
cause is not lack of money, he
turned to a discussion of over
capitalization and the evils that
followed.
Workers Deserved More
First he pointed out that i'm
provements in machinery cut pro-
duction costs tremendously, thus
increasing the profits of industry
He added:
"ObviOusly some reasonable
part of it (the prOfitS) should
have gone to the management
Of industry, but the greater
part of it should have gone
to the working masses. In
other words, the increased prof.
its should have been distributed
largely in higher wages and
shorter working hours.
"If this had been done, the
shorter working hours would
obviously have prevented any
lack of employment, because a
greater number of men would
have been employed to fill out
the working week.
"And if wages had increased
in proportion to the prOduc-
tivity of modern machinery and
the consequent increase in the
profits of industry, the pur-
chasing power of the public
would have been enhanced and
the consumption of all kinds
of goods and products would
have been maintained at a'high
level, or raised to a still higher
level"
When profits increased in in,
dustry, Mr.. Hearst said, labor