Imperial Valley press. (El Centro, Calif.) 1907-current, 1936-03-17
News Behind the News
The Presidents BrOUn Book 1t
Points The Path of Policy =.
Capitalism Treated -.

WESTINGHOUSE President Roosevelt'S
desk, among the toy animals, memorandum pads,
pencils, and other paraphernalia, visitors have
sometimes observed a small brown book
Both the president and Mrs. Roosevelt have
been known to recommend the book to friends.
Its purpose is to tell people how to keep the cap
italistic machine operating without running into
the ditch.
Presumably one is justified in assuming that
it at least partly reflects what's going on in
RooSeveltS mind as he grappleS with the prob
lens of recovery and reelection. Especially since
readers OF the little brown book now realize that
it forecast the presidents unexpected proposal to
revamp the corporation tax system by taxing I'M
distributed corporation profits.
The book is called Brass Tacks" and its
author is David CuShman Coyle a consulting
engineer of note
Here's what Coye had to say about corpora
ton SURPRISES, which now seem so significant:
." there is another type of insurance
against hard times that already has been widely
used This is the habit of laying up corporation
surplus for the purpose of paying dividends when
not currently earned.
The corporation reserve is the grandfather
and president of the Bootstraps Club Here the
IallaciouS notion that money should be made to
work has had the most devastating effects on
the business world, and program for stabz-
ing business will be really effective until this
notion has been swept away.
The first stage in using surplus earnings to
bring on ruin is to deposit them in the bank dur
ing the early stages Of prosperity. The banker
naturally lends the corporations money to one
of its competitors for expansion of capacity
which stimulates business and for time shows
no indication of the inevitable crash. As the
bubble grows larger and more irdescent the cor
porations turn their surplus funds loose in the
call market. This is called preserving a liquid
condition.
Then when the bubble bursts the companies
draw out their funds, wrecking the banks or call
ing loans on spectators as the case may be, and
generally debating everything in sight
Coyle proposes:
l. Genuine old age pensions and other forms
of economic security which will diminish the
urge for thrift.
2. Heavy income and inheritance taxes
which would finance that program and tend to
keep money in circulation rather than in invest
ment.
Coyle suggests $50 a month pension for
100000 persons over 60, which would cost So
OOOOoOOOO year and with the usual turnover,
he says, would increase national income Is or 20
billion dollars in addition to benefits of increased
stability.
Tcdays demand Coyle says, is mot for
capital, nor FOR labor, but for buyers to carry
away the goods" The unemployed must be alb
sorbed in service jobs
Some of CoyleS admirers consider him an
economic messiah whose memory will be en-
shrined long after DR.. Townsend, Earl Browder,
and Herbert Hoover are forgotten names.
WPA finally is getting out some counter
propaganda Which may prove somewhat effec-
tive, Newspapers everywhere are being told of
the percentage of WPA money going into their
states which is being used highways, parks,
Fairgrounds, public buildings, waterworks, and
sewers
Harry Hopkins is authority for the assertion
that sc per cent of all WPA projects consist Of
additions and improvements to public property"