Evening star., 1936-01-04

strike to bargain for hgner wages are
adequate. But the enforcement on
any one group of employees of the
commands of another group of en-
ployes is contrary to American con-
ceptions Of individual freedom.
Wagner Act Impediment.
The Wagner labor act in its pres
ent form is an impeachment to re-
covery and should be amended to
provide Federal Cancellation only
where it can be helpful. Mandatory
control of Federal law over employer
and employe relations should be
eliminated, because it is really detri-
mental to worker and employer alike.
3. The processing tax is barrier
to the increased consumption of food
stuffs in America. 1t is a burden
on the sales price and must inevitably
cut down farm income by reducing
sales in the home market as well as
in the foreign market.
Amendment of the A. A. A. to pro-
vide for the unrestricted production
of farm commodities and for CO.
operative disposal of exports at
price below the domestic level so
that America may meet world COM
petition in surpluses Is a prerequisite
to any sound agricultural policy.
Non-Political Relief Needed.
4. Establishment of relief on a
non-political basis is imperative. The
Community Chest organizations in
most American cities would form an
excellent nucleus for the setting up
of the necessary machinery to ham
die local relief. the expense to be
borne by States and cities, with aid
only in emergencies from the Fed
eral Treasury.
S. A real survey Of unemploy-
ment is needed as well as a scientific
study of the origin of labor displace-
ment. 1t would cost less than $50
1000 to classify the unemployed
and thus cease trying to fit square
pegs in round holes. Industry and
business would cooperate if the en-
ployment services of the Federal
Government and the States were
properly set up with funds to en-
able a job placement to be efficiently
conducted.
6. The utility industry is a key
factor in recovery. 1t can spend
billions Of dollars for raw materials
and for improvement and extension
of power plants. The Nations use
of electricity is increasing. A pro-
gram for regulation of holding COM
panies through Federal and State
cooperation is practicable and de-
sirable.
Utility Act Termed Invalid.
When once the utility problem is
removed as a foot ball Of politics.
interchange of goods and services in
this immense industry with its COL
lateral businesses-the manufacture
and distribution of electrical appli-
ances-will boom. Probably the Ma
ton must await a Supreme Court
decision to make this possible. For
inevitably the present utility act will
be held to be invalid by the highest
court. It is another example of a
good objective but wrong method.
Meanwhile progress is retarded as
litigation and chaos prevails while the
Nation patiently hopes for final de-
termination of legal points that have
long been established but which the
New Deal has chosen for political
reasons to ignore. The utility in
dustry can aid recovery and can be
regulated as to all abuses, too.
T. Federal finances can and should
be put on a sound basis. Otherwise
investors hesitate to make long-term
commitments for anything and specu-
lation based on an anticipation of
imitation prevents the satisfactory ex-
change of goods and services.
Budget Can Be Balanced.
The Federal budget can be balanced
in a three-year period, but each year
must show a material reduction of
deficits not merely on paper but in
the scope Of governmental enter
prises which potentially are expensive.
Removal of Government from business
and the setting up of sensible relief
scheme would mean a balanced budget
and nobody would starve either.
8. Our tax system is sloppy. The
Federal Government and the States
overlap and duplicate tax collections
The administration of the whole is
subject to suspicion unfortunately OF
punitive activity related to politics
This is something that can be cured
only by an aroused public opinion.
But the tax problem is even more
distressing in other respects. The tar
burden is not being equitably' dis
tributed. The poor man is being taxed
too much and the rich man is being
taxed so inordinately that capital ano
savings which have always provided
money for expansion are in relatively
unproductive channels or lie idle in
excess bank reserves.
Long Term Investment Aid Urged.
Again the interchange of goods ano
services is impeded because prohibitive
taxes arbitrarily interfere with tht
functioning of our economic system
The capital gains taxes should bt
amended to remove the stimulus fol
holding on to paper profits and there
should be provided instead measures
for the accelerated flow of investment
funds into long-term securities that
must be issued to build new industries
or reconstruct old industries.
9. Government competition prevents
proper exchange Of goods by erecting
barriers OF present and future un-
certainty for owners and managers OF
properties. Government lending is
not justified except in emergencies
and when private capital Is unavail-
able. There exists now no need for
new adventures in Government lend
ing.
The gradual retirement Of the Gov
ernment from lending operations is a
desirable policy for the national Gov
ernment to pursue. 1t would stimulate
recovery by enabling private financial
institutions to restore the machinery
of capital flow-again an encourage
ment to the exchange of goods and
services.
Guffey Act Change Desirable.
IN THE G,rnev art ought fa be