The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-06-19
Liberal Viewpoint
by DIR. HARRY ELMER BARNES.

N the last four or five years President Nicholas
Murray Butler has given out some excellent
pronounceinents on public policy.
He even had the courage to denounce the
myth of business cycle, so widely used as an
alibi for the greed of our business leaders who
have brought us into the depth of the present
depression He proclaimed the necessity for
political and economic experimentation. He
sponsored the Columbia university report which
recently Endorsed economic planning
In spite of his intellectual liberalism and
rhetorical courage, President Butler often ex-
hibits deplorable tendency to shy of when
one takes his word seriously and proposes to
translate his ideas into action.
Boldly opposing human exploitation in the
abstract, he bitterly fought against even the
effort to save our children from economic exploit
tation in the concrete.
Intellectual progressivism is commendable,
but unless it is translated into social action it
is veritably stone when one needs bread.
have just read printed copy of his recent
commencement address entitled Undermining
Foundations" 1t is an eloquent protest against
the program of taxation which might lessen the
benefactions bestowed upon our institutions of
higher learning and quasi-public organizat tons
of a charitable character.
DRESIDENT BUTLER points out that before
the depression American business men were
giving to such private institutions about $780,
growing expense of the new deal may neces-
state degree of taxation which will markedly
reduce the funds available for future gifts and
endoWmentS
Quite adroitly he envisages the possibility
under the guise of fatal shock to American
civilization instead of more frankly describing
the prospect as a temporary blow to privately
endowed institutions:
IF this vast scheme of public service in the
field of liberty is not to be destroyed, then
scheme of taxation for the support of govern
ment and its activities must be devised which
will not undermine the foundations upon which
it rests and has rested so long.
ITO wreck Or even to cripple these tens of
thousands of public service undertakings would
be to strike blow at the American people from
which they might never recover
IF the sources of supply from big-hearted
and large minded men and women we're to be
dried up then this army of public service insti-
tutiens must look forward either to an early if
lingering, death, or to be taken over by govern
ment as direct huge new charge upon the tax
payer, which would doubtless be even worse
than death.
MERE can be no valid objection to those
Il policies on the part of government which
do as much as government can do to prevent
our citizens from unfairly and unjustly exploit
ing his fellows but care must be taken that the
cure be not worse than the disease
Of the major fact in the premises which is that
none of these institutions which he desires to
protect will be able to endure at all unless
capitalism and democracy survive.
There must be sufficiently high taxation to
save the social order under the New Deal. Other
wise, we are in for Fascism or Communism and
Columbia university, as it exists today, would
receive summary treatment under either system.
Most endowed institutions would have money
enough to operate successfully if the income
from their endowments had not been reduced by
the folly and avarice of those very "big-hearted
and large minded men" who control American
business and whose reserves President Butler
wishes to protect from taxation.
If one wishes to save capitalism, democracy
and the culture which Mr.. Butler cherisheS,
then the best possible investment Is to be found
in the expenditures necessary to support and
enlarge the New Deal. These not only involve
more drastic taxation of those capable to pay
more taxes, but may even necessitate a capital
levy.
If anybody is Saving the foundations" it is
President Roosevelt. Those who counsel re-
trenchment in the present contingency are
veritably undermining the foundations of every
thing in which Nicholas Murray Butler has any
profound interest