Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-09-06

years ago.
AS spokesman for those purposes
pointed out that it was necessary
to seek wise balance in American
economic life, to restore our bank
ing system to public confidence, to
protect investors In the security
market, to give labor freedom to
organize and protection from ex-
ploitation, to safeguard and de-
velop our national resources, to set
up protection against the vicissi-
Jtudes incident to old age and UNI
employment. to relieve restitution
and suffering and to relieve in
vestors and consumers from the
burden Of unnecessary corporate
machinery.
Doubts If Any Party Will
Oppose These Principles.
I do not believe that any re-
sponsible political party in the
country will dare to 60 before the
public in opposition to any of these
major detectives.
The tax program Of which you
speak Is based upon a broad and
just social and economic purpose.
Such purpose, it goes without
saying, is not to destroy wealth, but
to create broader range of oppor-
tunity, to restrain the growth of
unwholesome and sterile accumu-
lations and to lay the burdens of
government where they can best be
carried.
This law affects only those indi-
vidual people who have incomes
over $4,000 year. and individual
estates Of decedents who leave over
$4,000.
Moreover, 1t gives recognition to
the generally accepted fact that
larger corporations. enjoying the
advantages Of size over smaller cor
porations, possess relatively greater
capacity to pay. Consequently the
act changes the rate of tax on net
earnings from fiat 1871 per cent
to differential ranging from 1914
per cent to Is per cent.
No reasonable person thinks that
this is going to destroy competent
corporations or impair business as
a whole. Taxes on IS per cent Of
our corporations are actually re-
duced by the new tax law.
A small excess profits tax is also
provided as well as an intercorpo-
rate dividend tax which will have
the wholesome effect of encourage
ing the simpliflcation of overly
complicated and wasteful INTERIOR
porate relationships.
Congress declined to broaden the
tax base because it was recognized
that the tax base had already been
broadened to a very considerable
extent during the past five years.
Recognizes Invisible
Taxes Fall on Poor Man.
I am aware Of the sound argu-
ments advanced in favor of making
every citizen pay an income tax,
however small his income. Eng
land is cited as an example. But
it should be recalled that despite
complaints about higher taxes our
interest payments on all public
debts, including local governments,
require only per cent of our ma
tional income. as compared with
per cent in England.
The broadening of our tax base
in the past few years has been
very real. What Is known as con-
sumers' taxes-namely, the invis-
ible taxes paid by people in every
walk of life-fan relatively much
more heavily upon the poor man
than on the rich man.
In 1929 consumers taxes repre-
scented only 80 per cent Of the ma
tional revenue. Today they are so
per cent and even with the passage
of the recent tax bill the proper
ton of these consumers taxes will
drop only per cent.
This administration came into
power pledged to a very consider
able legislative program. 1t found
the condition Of the country such
as to require drastic and far-reach-
ing action. Duty and necessity re-
quired us to move on broad front
for more than two years.
1t seemed to the Congress and
to me better to achieve these OBJ
jectives as expeditiously as pos
sible in order that not only busi-
ness, but the public generally,
might know those notifications in
the conditions and rules Of eco
nomic enterprise, which were in
volved in our program.
Breathing Spell. VERY
Decided" Is Now Here.
This basic program, however, has
now reached substantial compile
ton and the breathing spell of
which you speak is here-very de-
cidedly so.
It is a source Of great satisfac-
ton that at this moment condi-
lions are such as to offer further
substantial and widespread recov-
cry. Unemployment is still with
us, but 1t is steadily diminishing
and our efforts to meets its prob
lens are unflagging.
I do not claim the magician's
wand. I do not claim that govern
ment alone is responsible for these
definitely better circumstances.
But We all know the very great
effect Of the saving Of banks, Of
farms, of homes, the building Of
public works, the providing Of re-
lief for the destitute, and many
other direct governmental acts for
the betterment of conditions. And
we do claim that we have helped to
resctore that public confidence
which now offers so substantial q
foundation for our recovery.
take it that we are all not
merely seeking but getting the re-
covery Of confidence, not merely
the confidence of small group,
but that basic confidence on the
part of the mass of our population,
in the soundness of our economic
life and in the honesty and justice
of the purposes Of its economic
rules and methods.
I like the last sentence Of your
letter and I repeat with all