The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-01-26
7-POINT PLAN
DRAFTED FOR
!. U. 5. RECOVERY
Dr.. R. G. TugWeII Prepares
Program for Roosevelt
Guidance.
RICH WOULD PAY SHARE
Billions for Public Works:
Sound Currency One of
High Lights.
BY FORREST DAVIS
Copyright, 1888. for Scripps- Howard
Newspapers

BY FORREST DAVIS
Copyright, 1888. for scripps- Howard
Newspapers
NEW YORK. Jan. 26-In his Of
flee at Columbia college, DR.. Rex
ford Guy Tugwell, liberal econo-
mist and chief expert advisor to
President-Elect Roosevelt. today
enunciated a sweeping seven point!
program for recovery which very
likely will form the framework of
the incoming administration les
torative policies.
Here is DR.. Tugwells national
plan:
l. Higher income and inheritance
taxes, particularly in upper brack-
cts.
2. Widespread public works pro-
gram, possibly entailing $4,000, OOO.-
600 at the start; direct relief to in
digent unemployed; intense stimu-
latlon to Semi-public works projects,
such as slum clearance, through the
R. F. C.
Would Cut Utility Rates
3. Reduction in interest and pub
lie utility rates.
4. Sound currency: no imitation.
B. Budget balanced as to current
expenditures with repeal of the
eighteenth amendment as a factor
IN raising revenues.
6. Restoring the balance between
wholesale prices. especially for agri-
cultural products, and retail prices
to consumers. The farm allotment
bill, which already has passed the
house, is expected to accomplish
this for the farmer.
7. Rationalizing the inter-govern-
mental debt settlements-pe perhaps
by RENTING interest items in total
sums due-and by baSing debtors
capacity to pay upon his ability to
transfer goods or money in relation
to gold reserves and value. Also, ra-
tionalizing foreign trade arrange
mentS, such as tariffs, and perhaps
seeking vast new outlet for Ameri-
can raw goods and manufactures in
Russia.
Two Factors Essential
DR.. Tugwell, who departed for
Washington today, is hopeful that
the foregoing plan will begin soon
after March 4 to pump oxygen into
the country's PROSTATE commerce.
The PreSident-elect is said to be
prepared to sacrifice special inter-
ests whenever it is imperative to
provide for the greater good of the
whole population.
DR.. Tugwell views two factors as
indispensable to recovery.
l. Putting purchasing power into
the hands of those who ultimately
buy and use goods"
2. Equilibrating the wholesale
price index with the retail, more
particularly by raising farm prices
SO that large sections of the popu-
lation again may enter into con-
Stunning power.
What might have saved the sit
uation earlier and what is neces-
Sary to be done now" said DR.
Tugwell, lis in direct contract with
all that has been done.
Need Buying Power
THE energy and ingenuity which
has been expended on our financial
institutions ought to be turned to-
ward the repairing of a nationally
damaged purchasing poWer-not
confidence, but actual power to buy.
The country's financial institutions
can be salvaged only by enabling
its citizens to buy goods.
In such situation, there is
just one thing to do: Take in
comes from where they are and
place them where we need them.
Practically. this means extreme in
come taxation and distribution bv
government to consumers who will
spend for goods, start the productive
processes again, and gradually re-
store their own earning power"
Dr. IugWelIs proposals for re-
storing purchasing power rest nm
the public and semi-public works
enterprises, on direct, outdoor relief
on an adequate scale, and unon
closing the gap between-for ex-
ample-tarm products and the prices
the farmer must pay for steel
fabricated goods, freight carriage
and other commodities at retail
and on reducing interests overhead
dragS on production.
Wants Higher Taxes
He would finance the public works
program by higher taxation and bv
borrowing.
DR.. Tugweu opposes currency in
fation. He pointed out that the
amount Of money in circulation had
increased since 1929 from S4.9OO.-
100000 to its present high mark of
S5,700,000000 without seemingly
affecting the commodity price index.
Bank credit, however. declined
during that period from s58,8OO.O OO.-
600 to SAT, 100 100000.
Intergovernmental debt settle
ments ne expects to see rationalized,
with revision downward.
Repeal of the eighteenth amend
ment is essential, he holds. as
means Of producing revenue and on
moral" grounds. But he doubts if
repeal would produce more than
one quarter of the stimulus to busi-