Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1936-11-12
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grinding of legisla-
tive wheels is now being heard. OF
course, there has been no legislative
program formulated. Little of a
specific character can be done in
this direction until the fog and the
smoke of a campaign drifts away.
Nevertheless, beneath it all there
are definite signs to guide us, to
show some of the important ques-
tons that will naturally force their
way to the front rank of considera-
ton by congress as soon as it is
formally organized January 8.
While I do not take much stock
in many of the ideas or schemes
that are receiving consideration, or
to which sponsors are trying to di-
rect attention, it is perfectly evident
that one of the major questions to
receive congressional attention this
year is the plight of business. !
mean that there are countless gov
ernmental policies that directly af-
feet business and the debate of the
recent presidential campaign h as
awakened such widespread inter-
est in general business that congress
cannot avoid debate on the subject.
There are many members Of the
house and senate, including a good
ly number of those lately elected or
reelected, who feel that the Wash
ington government has been mess
ing too much into the affairs of
private business. They feel, and /
believe with justific alton, that unless
many of the government handicaps
are withdrawn, unless many of the
restrictions and the superfluous rules
and regulations are removed, bust
ness cannot go ahead as it appar-
emily would like to do.
It is said that many corporations
would like to engage in plant ex-
pansion and increase their pay rolls
by many thousands of workers but
they are afraid to do so under pres
ent laws and policies. They cannot
feel a sense of safety and corporate
funds, after all, are just like many
belonging to an individual. Those
who manage it or own it will not in
vest it unless they can be assured
of policies by the government at
Washington that give them an equal
chance, at least, to obtain a return
on the money they invest. In other
words, corporations are just like
individuals who will not risk their
money unless they have confidence
that the odds are favorable to them.
Word came to me the other day
through official channels to the eff
feet that gigantic and well-known
corporation was ready to expand its
whole productive capacity if it could
be certain that federal tax laws
were going to be revised so that
they consisted of tax laws rather
than tax penalties on business
chances. The word was that this
corporation expected to spend about
one hundred forty-two millions; that
the authorization for the work had
been approved by the corporations
board of directors and that blue
prints of the plans had been drawn.
But all of this had been done upon
a contingent basis.
You will say that this is an iso-
lated case, and it is. But it is iso-
lated only to the extent that / am
not able to name names and identity
directly hundreds of other corpo-
rations that are exactly in the same
boat. To an extent, information that
other corporations are following the
same policy is hearsay; yet, I have
every faith in the reports concern
ing general plans along these lines
and I am firmly convinced of the
sincerity of business arrangements
generally to go ahead if the Wash
ington government permits them to
have confidence that they will not
be destroyed by taxation later.
It seems to me there are three
phases of federal government poll
=. cies and laws that
spending serve to retard
Policies business recovery.
I mentioned tax
alton and government regulation or
bureaucracy. There is third. It is
the spending policies that have been
followed and that have resulted in
the enormous federal debt with a
budget still unbalanced.
do not know which of the three
is held to be the most important
among business generally. Regi-
mentation and bureaucracy breed a
fear in the minds of so many bust
ness leaders that as long as bureau
cracy in Washington continues to be
as widespread as it is, this segment
of the business structure is going to
remain quiescent. Another segment
will do nothing in the way of
expanding operations when the tax
laws are taking such tremendous
toll and actually serve as an i'm
polling force against the desires Of
business to increase its own revenue.
The third factor of influence, that
Of government spending, throws a
fear into the hearts Of every bust
ness man. AS long as the budget is
unbalanced and spending, even
wasting of money continues, there
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