, 1934-12-17
The World
At Glance
BY LESLIE EICHEL
Central Press Staff Writer


the federal budget cannot be bal
anced for the fiscal year OF 1885.
Financial New York viii be salts
fled II there Is eve q semblance OF
a balance by 1861.
Federal spending will continue up
ward during this winter.
The greater the federal spending.
the less private money is inclined to
come out of its hiding spots.
Thus the government becomes
more and more responsible for all
business. That. IN the end, would
cause this TO be a nation in which
all business that does not pay divi-
dends would be In the hands Of the
government-and all the business
that pays dividends would be con-
centrated in a few private hands.
Old Age Pensions
Yesterday, we wrote on the Town
send plan.
Today we read an interesting
letter on II from ID. A. Ernest, Lake
wood, q.
We quote the letter:
"A recent letter stated that the
Townsend pension plan would retire
from industrial activity 8.000,000 per-
sons OF 90 or over. leaving jobs for
our younger generation. II should be
pointed out that the above figure
comprises all Of those eligible 70
receive the pension. It would be sur
prising indeed to learn that even
/ per cent OF them are gainfully en-
ployed.
Il am sure the majority OF DR..
Townsend'S adherents have no con-
ception OF the possible volume OF
revenue from a retail sales tax. In
1929, retail sales reached the x
traordinary volume of SO billions of
dollars. On that basis, a sales tax OF
3 per cent would have to be neceS-
sary 10 raise the 1872 billions pro-
jected for the Townsend pensions.
II. as DR.. Townsend says, a 2 per
cen. tax were to be used. an annual
turnover OF $50 billions would be re-
quired TO provide a 1872 billions pen
sion fund.
Il believe IL was the Technocrats
who stated that production for 1929
was only rs per cent Of capacity.
Suppose that 1t should be possible
In 1885 to step up production to abb
solute capacity, following a Is per
cent increase due to chronological
advances since 1929. Production for
1885 would be five times that Of
1929. and retail sales would be ap-
proximately 265 billions Of dollars.
On this turnover, the sales tax ne
ceSSaTy 10 produce 1872 billions for
pensions would be 7 per cent. Sales
in 1888 would have required a 20
per cent tax rate. Depending upon
the years production. the necessary
tax rate would fluctuate between 10
per cent and z per cent. reducing
purchasing power accordingly.
Without doubt, a sales tax dis
courages buying in proportion TO
the tax rate. If II were possible to
attain above mentioned maximum
production, reducing the tax rate to
z per cent, the tax might be cheer
fully paid. IL II obvious. however.
that the necessary intermediate
1N~ENR N0AAA AaAAcC III ODCAA IENOtL
on the part Of the producer-consu-
mer.
TO any one interested enough to
communicate with me, 1 shall be
glad TO verify both the source Of my
tatistics and the accuracy Of my
simple arithmetic"
Impossible. Impossible!
Some weeks ago. we asked three
rhetorical questions in this column.
Edward y. Quirk. OF East Rocka-
way, ". ~. answers each with an
impossible IS have many other
persons). We re-quote the questions:
How can the government pro-
coed on the n hand TO increase
costs TO producer and on the other
hand expect larger consumption?
How can monopoly be maintain
ed without increasing the number
OF unemployed?
How can the mass share ITO the
extent Of a livelihood in the mon
| opolies unless the monopolies be-
come co-operative?"