Evening star., 1933-12-10
NEW TAXES URGED
TOA|DUNEMPLO
Direct Levy on Corporation
Cash Surprises Asked
at Conference.

Direct taxes on corporation cash sur
pluses. increased governmental spend
ing and welfare activities, and a gen.
eral program of redistribution of wealth
through taxation, were urged here last
night by speakers at "a conference on
essential unemployment legislation
called by the Joint Committee on Un-
employment at the Continental Hotel.
Dr. John H. Gray. former president
of the American Economic Assocla-
ton, declared in his address on Taxa
ton of Incomes and Corporation Sur
pluses" that if corporations cash were
heavily taxed and the tax receipts dis
tributed weekly to the unemployed, re
tail stores would get so much busi-
ness they'd cry for goods, manufacture
ers would hire labor to meet the de-
mand and business would revive"
Urges Writing Down Debts.
Leon Henderson of the department
of remedial loans, Russell Sage Founda-
ton, advocated the writing down OF
debts. At the present time, Hender-
son declared. interest on the debts Of
store bills, inStallment purchases anc
kindred obligations is so huge that II
'just about keeps pace with and alb
Serbs the pay roll gains made by NJ r. A
and other Federal relief" He advocated
O national debt-adjustment bureau
with broad powers, whose responslpln-
ties and duties would be to adjust debts
on the basis of the consumers power to
pay.
Sidney Hillman. president. Anal
gamated Clothing Workers, said his or
ganization favored the 30-hour week
"as the best we can get under this in
sane capitalistic system" He said the
shorter week was not advocated by the
clothing workers because they believed
there was overproduction, for in 1929
''the big year. the average suit OF
clothes purchased for the nation was
three-quarters of suit for every man
and boy in the country.
Prof ColSton E. Warne of Amherst
College, suggested that the tax burden
be shifted from those who must spend
to live to those who hold the surplus
wealth" Contrary to the popular belief
that the sales tax was defeated in Con-
gress, Prof. Warne contended that as a
matter of fact much of the United
States Government tax is from sales
ana ne clueQ gaSOllne, OIL, lTedUei
tickets, wheat, and host of specific
items.
Hits Price Reduction.
Discussing reduction of interest rates
on long term debts" Lawrence Dennis
author of work on capitalism, termed
"fallacious" the principle of reducing
prices to increase business. This was al
right in the nineteenth century, he said
when world trade was carried on in ar
open market, but that it was out.
moded today by tariffs and closed ma
tional economics. Likewise. he said
simple reduction of interest rates woulC
not restore prosperity. He advocated
instead the establishment of thu
whole debt structure through the crea
ton and operation of a national deb
commission. One way of meeting tht
debt problem is imitation. he said, bu
he contended this would be the ruin o.
the middle class"
The conference opened yesterday
morning. Officers of the Joint Commit.
tee, which called it, included DR.. Johr
Dewey of Columbia University, chair.
man; DR.. Sidney E. Goldstein, chair,
man of the Executive Committee; Rev
DR.. John A. Ryan of Catholic Uni.
versity, Harriet S. Blatch, Ethel Clyde
DR.. John H. Holmes, Bishop Franci
j. Mcconnell, Norman Thomas ane
Rabbi Stephen S. Wise.