Evening star., 1936-03-06
TAX ON RESERVES.
DEFENDEDBY WEST.
Interior Undersecretary
Quizzed by Panel at Y. M.
G. A. Forum.

President Roosevelt's plan to tax
cause a proper redistribution OF "un-
divided profits" among the people
who need it, Charles West, White
House liaison man and UnderSecretary
of the Interior, declared last night
in the Panel Forum of the Young
Mems Christian Association.
Addressing an audience of several
hundred persons in the Central Y. M.
C. A. auditorium. West defended the
entire program for recovery in discuss
ing. What Is the New Deal?"
There is no question but that
financial reserves of industry have
been allowed to accumulate SO that
undivided profits have been withheld
from the employees" West declared
in response to a question propounded
by Huston Thompson. former Federal
trade commissioner, who was a panel
member.
Sees Redistribution.
This plan strikes at the root OF an
evil. 1t seeks to tap industrial re-
serves and redistribute them for the
general welfare by means Of exercise
OF a proper taxing power"
Thompson agreed with West that
the plan would put latent money into
circulation without causing any great
hardship TO corporations. He said
the tax would leave about 70 per cent
Of corporate reserves intact:
West recalled the serious crisis
which confronted the present admins
tration when 1t came into power and
asserted that the great economic up
heaval called for drastic new measures
of Government control. The indus
trial machine" was out Of control
when the New Deal came to the
rescue and grabbed the steering wheel,
West declared.
Denying that the New Deal leans
to faSciSm. communism OF socialism,
West said it is merely an intensive
''effort to bring about better bal
enced economic structure"
Qutmed on SpOils.
Prof. A. S. Fleming. director OF
the School OF Public Affairs of
American University, another panel
member, inquired about charges that
the New Deal has revived the ''spoils
system its ideals are laudable,
but its execution of them subject to
criticism West claimed that the merit
system has been followed and safe
guarded" by the Roosevelt administra-
tion by and large.
Dean Willard s. Small OF the School
of Education of Maryland University.
also panel member, suggested that
the T. V. A. plan. if extended, Is
likely to impair the investments OF
a great number OF eating
up private enterprise and initiative"
West countered with the assertion
that sit hasn't happened yet" and
said the T. V. A. is designed to "pro-
tect the people from private eXploita-
ton
Asked by member of the audience
"who originated the New Deal West
said no single person could claim
the credit" as the recovery program
was the result of the meeting OF
''many minds" including those Of
''great economists and professors"
why shouldn't the Government use
the intellectual genius Of our uni
versities?" West demanded.
In response to question as to
whether the country can pay the
cost of the New Deal program. West
declared the national debt today is
not so burdensome, comparatively, as
it was three years ago. because the
national income has improved"
Dr. John w. Studebaker. Federal
commissioner OF education. was chair
man of the panel. other members Of
which were Otis T. Wingo. executive
secretary. National Institute OF Public
Affairs, and DR. j. Grin Powers, pro-
fessor of education, George Washing
ton University.