The midland journal. (Rising Sun, Md.) 1885-1947, 1934-12-14
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National Topics Interpreted "a fTTFTEFF1
by William Bruckart ApE15HfTF
by William Bruckart

been producing something like four
hundred and twenty million dollars an
nually, good sized chunk of revenue
In anybody's language. 1t Is planned,
therefore, to renew these. There may
be some revision and some change in
the bases but the principles involved in
those levies seem certain to be contin-
ued.
Re-enactment of these statutes Is not
expected to have a material effect on
business because business has become
adjusted to them. am informed by
business experts that undoubtedly busi-
ness would move forward more rapidly
If these taxes could be eliminated.
Since that is not to be, business is
hoping, If not demanding, that the tax
burden upon it be held within the pres
ent confines in order that it may not
be under any further handicap while
searching for a solid foundation upon
which to expand.
President Roosevelt and his emer-
gency administrators believe they have
hit upon new and
Money for productive plan to
the Needy give money out to
those who need it.
They are about to embark upon a pro-
gram of encouraging personal loans,
loans by banks to individual men and
women and to guarantee repayment of
portion of each loan made.
1t is viewed as exceedingly interest
ing that national government, or any
other governmental agency for that
matter, should embark on such policy
because there are those who hold 1t to
be dangerous precedent. have done
considerable research work regarding
this proposal and have failed to find
in the records any such move in the
history of important nations of the
world. 1t is, therefore, undoubtedly
one of the most highly experimental
steps yet taken in this maelstrom of
recovery plans.
Announcement of the scheme was
made by James A. Moffet, federal hous-
ing administrator, who described 1t as
marking "a new era in American bust
ness" 1t is true that there are certain
types of banking institutions that have
made individual, or so-called charac-
ter, loans where no collateral security
was offered by the borrower and where
only the good name and the record of
the individual warranted extension of
this credit
Mr.. Moffet said that this character
loan idea would prove to be "the very
foundation" of the home modernization
program which he is administering.
He described the action as one predi-
Gated upon the governments absolute
confidence that the average American
will keep his promise to repay what
he borrows."
Nor is that position as much of
jump in the dark as it at first may
SEEM" said Mr.. Moffet. "As usual,
Uncle Sam knows what he is doing.
Before offering to insure these loans,
he consulted the country's records on
installment buying He also asked what
had been the experience of the few
banks who up to last spring had made
character loans. From the banks and
from commercial organizations selling
on the installment plan, he learned
that the average American is honest,
and that the loss from character loans
was just little more than three
fourths of l per cent"
1t is not the fact that the govern
ment found the average American to
be honest, however. that is exciting
comment among Washington observers.
1t is that the government is encourag-
ing loans to individuals, some of whom
obviously will suffer the ordinary fate
and be unable to repay them.
It is now believed that the world
court issue will be settled definitely
early in the next
World Court session of congress.
Issue The foreign rela-
lions committee of
the senate, which must pass, on such
treaties, has an agreement to send the
resolution of United States adherence
to the world court to the senate early
in January and, according to present
indications, the administration can cas-
lily muster enough votes to adopt that
resolution.
Pressure for American utilization
with the court is stronger now than
1t ever has been before because of the
disturbed world political situation, the
breakdown of the naval limitations
treaties and the tendency among ma
tions to split up into groups for ar
rangement of balance Of power.
Observers here take the position
that American adherence to the world
court would have far greater signifi-
canoe throughout the world now than
1t would have had earlier because of
tha rox,ivoI 0f dicouSSion nc IN vuhothor