The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1936-09-17

Picture view" and again
has painted Off
cially picture of general condi-
tons that I believe to be the most
accurate obtainable under present
chaotic conditions. might add that
it is one of the few official analyses
coming out from the government
these days that is not colored in
any manner or form.
The reason this review is so in
teresting is because it points out
what can be expected to happen by
disclosure in detail of what has
happened in commerce and indus
try. To that extent it delivers
rather definite body blow at some
New Deal policies affecting bust
ness. Since it does this sort of
thing, the review is entitled to more
faith and credit than usually is ac-
corded government publications,
whether compiled by the Roosevelt
administration or those before it.
Political leaders always want to put
their best foot forward and the New
Deal under Mr.. Roosevelt has not
failed to carry on this tradition to
the fullest possible extent.
The section of the "World Eco
nomic Review" that was r.ost in
teresting to me contained this state
ment:
Deficits of great magnitude Gre
ated yearly during the depression to
meet payments of wages, salaries,
interest and dividends Slapped the
vitality of the entire business struc-
ture and could not have been sus-
tanned indefinitely"
Here then is an official declara-
ton from that agency of the govern
ment most concerned with COM
merce and industry which says that
corporations and employers of labor
maintained as far as they were
able the payrolls and interest pay
ments during the depression. It
says likewise that had corporations
failed to do this, our unemployment
problem would have been much
greater, the income of those who
hold securities, whether in large or
small amount, would not have re-
ceived dividends on their stocks or
interest on the bonds and, as a
result, it is obvious the buying pow
er of the country as whole would
have been sharply reduced. That
is to say, had these payments both
to labor and capital, been curtailed
there would have been even lower
level of retail business than OBJ
tanned during the depression. It
ought to be added as well that had
lower level of business resulted,
the manufacturing industries. from
which the retail stores buy their
supplies would have closed down
their plants in even greater num-
Der than they did.
AS we look back over the last five
or six years it is easy to see how
things could have been very much
worse. It is easy to recognize that
the strength that comes from
amassing capital in corporation
form has developed in this country
one of the greatest shock absorb
ers that any people may have when
those corporations, those busi-
nesses, are permitted to develop
under sound management and with
as little governmental interference
as the general public welfare will
permit.
Now, as to the reason why these
businesses were able to accomplish
the things they did: The answer is
simple. Arrangements of businesses
must follow the same practices in
guiding the financial affairs of those
businesses as you or 1 do in the
management of our personal af-
fairs.
This brings us to a point of cur
rent interest. In preparing for the
rainy day, all
Rainy Day business, whether
Fund great or small,
lays aside a GER
tain percentage of it's profits. This
is called surplus. The surplus is
invested. 1t is made to yield a re-
turn in the form of interest or divi-
dends. 1t is seldom touched. It is
treated just as you and would
treat our savings accounts-just as
we deal with our Christmas savings
account.
Thus, the arrival of slack times,
dull business, no profits, the arrival
of the time when we must live on
our own fat so to speak, does not
find us without reserve because
that is what surplus is.
The records of the savings bank
and of the life insurance compa-
MES through the last six years show
definitely how many hundreds of
thousands of people had to draw on
that surplus just as the Department
of Commerce statement now re-
veals how many corporations drew
upon their supluses in order to main
tain their organizations, pay the
workers and be honest by paying
the interest on their debts. All of
this sounds like a chautauqua lee
tlfre on savings. But however it
may sound, it links in directly to
Legislation that was enacted in the
last session of Congress, a law
driven through under the lash of
President Roosevelt after it was
conceived by bunch of radicals
who constitute the majority of the
so-called brain trust at Washington.
That law levies a new tax on
corporations. 1t does not touch us
as individuals except indirectly. The
tax applies to surplus, to the saw
ings of business, savings designed
to meet just such conditions as
those through which we have gone
and which business was able to
meet because heretofore it had been
permitted to pile I'D reserves to car