, 1935-01-01
The World
At Glance
BY LESLIE EICHEL
Central Press Staff Writer

NEW YORK, Jan. 3.-Both the
National Grange and the American
Federation Of Labor have turned
their guns on the Townsend reyolv-
ing old-age pension plan payment
Of $500 a month to persons so OF
over, provided each cent is spent
during the month";.
The Washington representative Of
the Grange, Fred Brenckman. tells
why his own organization opposes
the plan:
Assuming that approximately g.
100000 people would make applica-
ton and receive $500 a month, 1t is
only necessary to invoke the aid OF
multiplication TO find that the total
cost Of the plan would be sl9,200,-
100000 a year.
Taking It for granted that our
present population is l25-million
the plan would call for the payment
Of a sales tax OF Sl54 on the part Of
each man. woman and child in the
country for this purpose alone. For
the average family OF five. II would
call for an annual tax of $40. This
sum is close 70 the gross income Of
the average family Of the United
States during recent years.
The department OF agriculture
estimates that the gross value Of all
live stock and crops combined on the
average farm OF the United States
for the present year will be approx
mately 81 1000. This figure repre-
sents the value Of everything pro-
duced and consumed on the farm
as we'll as commodities sold y.
Since taxes are payable in cash
and not In commodities. on the
basis Of present returns. the aver
age farmer OF the United States
would not have enough money =
pay the sales tax for old age pen
sions. If all Of his cash income were
devoted TO that purpose alone \.
lone may we'll ask whether tht
tremendous rise IN prices which
would accompany the adoption o.
the Townsend plan would not re-
suit In a universal buyers strike on
the part Of all citizens under 60?'
William Green. president Of ths
American Federation Of Labor, !;
equally emphatic. He asserts.
The sales tax OF the Townsend
plan would be an enormous bur-
den upon the worker and the con-
sumer. who would bear a much
greater share Of the burden in pro-
portion 10 their income and ability
TO pay than the rich
Reaction
Supporters Of the Townsend old
age pension plan naturally are en-
thusiaStic.
Many shut out the idea that there
can be any other plan. more feas-
ible. less likely 10 bring added suf-
fering.
One reader Of this column in Cali
fornia questions the integrity ol
this writer for saving that tins
Townsend plan probably would
bring even greater suffering TO tho
whole population. and especially
would arouse youth. struggling un-
der The Tost adverse conditions IN
generations.
There would be. indeed. cause 70
question the integrity Of this writ
er II he did not point out tho truth
as he saw II.
Stroke or Luck
The Roosevelt luck does re-
main.
New Deal stock was dropping
someWhat-until n series Of 'fortu-
nate attacks occurred.
First some Big Business leaders.
meeting at exclusive White Sulphur
Springs. w. va. declared for a dole
instead Of work. for relief trevers-
ing a peryious attitrde). Then John
w. Davis. the millionaire Morgan
lawyer who guided j. r. Morgan
from paving income taxes. de-
nounced the New Deal as unconsti-
tutional.
incidentally. many citizens de-
sire 70 know why the escape OF
wealthy from income taxes isn't un-
constitutional. II is. however. con-
stitutional-but congress could
rsmedv the situation. II II WOULD.