Evening star., 1936-03-01

delegates to the national convention in
Philadelphia. This is done to comply
with the State primary law"
Big Force in Election Seen.
Just the same, Mr.. McGroarty boasts
that the Townsend movement is going
to be the big force that will swing the
coming election" He says that "Dr.
Townsend has built up vast political
organization the like of which has not
been known in the political history of
the United States-this is what is 60
ing to swing the election-and the
ossified politicians don't know yet what
Is going on. This organization has
completely overwhelmed the West.
The Rocky Mountain and Pacific Coast
States are almost solidly Townsend.
The movement has invaded the East
and is going like wildfire." He points
to picture on his Office wall of a vast
gathering to welcome him home to Los
Angeles last year after he introduced
the Townsend plan bill. He says that
there were $4,000 persons in that
gathering.
So much for the change of heart
Of the Townsend plan and its spon-
sor-and so much for their scaling
down of their demand,
Now for the pledge of those oppos-
ing the plan that they will work for
real social security measure.
Senator Vandenberg speaks quite
general sentiment when he says:
Il believe the Government must
make adequate provision for adequate
old.age pensions. The Townsend plan
is entitled to great credit for forcing
| this issue to the fore. I do not be-
lieve the old-age pension provisions
in the social security act is adequate,
and I expect to join in making it
more adequate. 1t is my opinion that
the Townsend plan would not be a
step forward in this cause. On the
| contrary, believe it would precipitate
disaster not only for its intended ben
eflciaries, but also for the entire coun-
try. 1t would create infinitely more
problems than it would solve and do
infinitely more harm than good"
Refuses to Act for Two Reasons.
Congress is refusing to act upon
the Townsend plan for two reasons
many, a big majority, believe it is un-
constitutional, and there is an almost
unanimous conviction that it is eco
nomically impossible.
AS to the constitutionality, Rep
resentative Blanton warned his COL
leagues: Every good lawyer in the
United States knows full well that
the proposed Townsend plan is un-
constitutional and that it would be
set aside and annulled by the Supreme
Court before it could be put into ef-
feet. Not an aged person would ever
receive 81 from it. Hence it is de-
lusion and snare. 1t is a fraud
on its face. 1t is deceiving good peo-
pie. It is taking money from them
under false pretenses. It will end in
their sad disappointment"
About a score of members of Con-
gress and many noted economists have
gone into detail as to why the Town.
send plan is economically unsound
and impracticable. DR.. Westerfeld
points out that "the United States
Bureau of Foreign and Domestic Com
merce in cooperation with the Ma
| tlonal Bureau Of Economic Research
estimates the national income paid
out in 1884 at $50. .189 ,000, 900. OF this
sum, the pensioners. who constitute
about 9 per cent of the population,
would be receiving IS per cent. If
the $27, 1853, ,000, 900 going to pension
ers were deducted from the total in
come, there are left for the non
pensioned population 22,72l 900 900.
Dividing this sum over the estimated
number OF persons under go years of
age (namely 114,797 ,OOO) in 1884, al
lows $197 per year for the non
pensioned as against the $2,400 a year
for the pensioned, or about one-twelfth
as much" He refers to DR.. Town
send as "a true child of the New Deal
spree in Utopian fairyland" and calls
upon the American people to "come
back to realistic world and quit chas-
ing fairies in the land of make
believe"
Emotional Adventure"
Elbert says that the Townsend
plan is "an emotional adventure in
the field Of economics-the Town.
sendites are looking for the rainbow's
gold. The rainbow is too far beyond
the horizon"
After a careful and detailed enalysis
OF the second McGroarty bill, Repre-
sentative Engel tells what the trans
action tax would mean to the farmer,
the merchant, the banker, the manu-
facturer, and the wage Garner the
advantages it would give the chain
store and how it would ruin thou
sands of independent merchants,
hundreds of struggling industries. He
shows the tremendous cost in addi-
tlonal taxes to Federal and State
governments, how the individual
would have to pay in taxes from
diapers to coffin" He explodes the
business turnover argument of the
Townsendites by showing the fallacy
of taxing 81 600 per cent and con-
cludes that you would have to cross
breed the dollar with guinea pig to
make it produce itself six times q
year, and make that one dollar nav
So in taxes"
More than dozen prominent mem.
bers Of the House have made speeches
giving various groups Of statistics and
economic arguments against the
Townsend plan-far too numerous to
quote here. Representative Lea in
conclusion says:
'The adoption Of the Townsend plan
would make more people dependent
upon each other than any other single
act OF mankind. The far-reaching
and ramifying effects of such q
change upon our political, economic
and social structure can be measured
with no degree of accuracy. If the
Nation hastens upon this magnificent
folly, 1t will probably long repent in
sackcloth and ashes"-but:
"Our American people are the de-
scendants Of pioneers. On the whole
they have been hard-working, self