Evening star., 1935-04-12
TAX FLAW SEEN
IN TUGWELL IDEAL
Question of Funds for Third
Economy Declared
Overlooked.
BY DAVID LAWRENCE.

eial of the Wilson administration re-
marked to a friend that the $4.8O0,-
100000 appropriation bill which has
Just become law would profoundly
change the history of the United States
for all time.
Within "a hours thereafter, Rexford
Tugwell, Undersecretary of Agricul-
ture and the real spokesman for Pres
speech in which he proclaimed for
economy"-a new description Of the
New Deal, which aims neither to 60 to
the right" nor the left" which
doesn't bring us either Communism or
Fascism. but which places In the hands
Of the Federal Government new con-
trolls over certain phases of our eco
nomic life.
IT should like to explore with YOU"
said DR.. Tugwell in his prepared ad-
dress, the geography of what could be
called the third economy-the sphere
which belongs neither to private profit
nor to State Socialism as it is generally
understood by those who advocate or
fear the naturalization of utilities, key
banks and other institutions of similar
social Importance"
Public Works Stressed.
Prof Tugwell, who is to have the
responsibility for spending a large
part of the s4.800,00000O fund on be-
half of the President, points out that
there is category Of public works of
necessary yet improbable measures
(which must be taken to preserve the
values of our national patrimony." He
comedies that these things do not ap-
peal very strongly to that important
group which, set aside from common
insecurity by the possession of wealth,
resents the necessity for taxing itself
for the sake of posterity" He goes on
to argue that people still ask, What
has posterity done for us?" and that
people generally do not seem to be
willing Ito forego immediate pleasures
and opportunities for the sake of gen.
erations yet unborn" but he thinks
that nevertheless such q public serti-
ment can be and should be developed.
After outlining certain types of
public works which cannot return a
direct profit to the State or to the in
dividual," such as control of soil ero-
sion, by dams and by drainage, canals,
shelter-belts, reforestation, flood and
wind control measures, he adds prof.
ects for rural housing, rural santa
ton. rural identification and COM
munity Developments. DIR. Tugwell
goes along with Federal Relief Admin
istrator Hopkins, who said the critics
were too damn dumb to understand
the finer things of life.
Holds Developments Necessary.
"Such community developments, "
says DR.. Tugwell, "as recreational IA
cilities, educational artistic and cul-
tural enterprises, which create both
new demands and new satisfactions,
are an indispensable part Of this pro-
gram to conserve our national re-
sources and to develop them as well as
our own capacity to utilize and enjoy
their benefits"
On the question of industry Dr.
Tugwell is no less specific. He de-
Clares:
"For the main task Of production
we shall always have to work under
some form Of coordination, whether
that coordination is expressed
through public control over hours,
ployment, or through what President
Roosevelt has called partnership with
industry.
"Co-ordination is the essential ele-
ment in large-scale production.
1t seems to me that we are now en-
gagged in q more or less conscious proc
ess of reassigning and redistributing
powers and controls in the indis-
pensable coordination.
Appeals to Teachers.
In certain spheres, no doubt, where
enterprise is affected with public in
terest, we shall be forced to resort to
an increasing degree of public author
ity to achieve the necessary control
Public ownership of certain utilities
seems to me clearly forecast by pres
ent facts"
DR.. Tugwel's remarks were ad-
dressed to the school teachers of
Rochester, N Y, to whom he is ap-
pealins for the spread of propaganda
in support of the third economy"
Said DR.. Tugwell on this point:
The teaching profession, 1t seems
to me. holds largely in its own hands
the answer to the question of whether
the American people can escape from
the iron ring OF logic which would
narrow their choice of policy to purely
conventional alternatives, and so bring
to their new economic and social op-
portunities new attitude, new spirit
and new faith"
Tax Question Paramount.
The revelation of the third economy
this week, as plans are being made to
spend the $4,000, 900, 900, may or may
not be a coincidence. But nowhere in
DR.. Tugwells address Is there any
fourth economy, which is to answer
the question Of how the American
people are to be taxed to pay for these
public ownership adventures.
II the sources of taxation-the
profits-are to be abolished or dried
up 50 that private businesses and sue
cesSful individuals who pay revenues
to States and cities which need funds
to support schools and other public
works can no longer do so, some one
will have to devise a substitute econ
omy. Such an achievement would
make the Treasury officials less wor-
ried and cure all monetary difficulties,
and the inventor would be awarded
the highest honors his countrymen
could beStow
(Copyrisht 1850