The Bismarck tribune., 1937-11-08

chasing Power for Poor MAN j.
Little Chance Of Capital Tax Re-
visions No Retreat From Con-
gressional Program.
BY RODNEY BUTCHER
Tribune Warrington Correspondent)
Washington, Nov. 8. ~ President
Roosevelt Is asked about revision OF
the surplus profits and capital gains
taxes. He replies that the New Deals
chief objective Is more purchasing
power for the under privileged zone
third and that his wage-hour pro.
gram and the new crop control pro-
gram will be aimed at that.
This reflects the presidents mind
fairly accurately. according to many
who have been talking with him
earnestly. The reflection depresses
some Of his advisers and elates 9TH
ers.
t IS now certain that the heat which
has been turned on Roosevelt In the
effort to persuade him to ask cor
porate surplus and capital gains tax
revision will have to become much
hotter II the presidents brand OF
revision" Is to satisfy the business
groups and conservative advisers who
have been urging him.
\ X \
Stock Slump Not Alarming
Roosevelt. II some of his intimates
interpret him correctly, Is convinced
that the business slump caused the
worst Of the stock market drop-not
vice versa, and that the two chief
causes were:
Industry's stocking heavy inven-
tories at high prices last spring.
Industry's raising prices higher
than the market would accept. Such
q view obviously minimizes any ad-
verse effect Of higher wage scales.
Although the administration has its
quota Of Cassandras, In general 1t Is
not seriously disturbed by the thres:
o. a business tail-spin. The business
situation will smooth itself out. it's
believed In high places.
And II It doesn't, the government
thinks that 1t possesses important
remedial powers. The presidents
warning against soaring prices had
a very definite effect on commodity
markets last spring. 1t Is claimed, and
the Federal Reserve Boards recent
margin requirement changes started
the stock market going up again.
\ X X
More Spending Ahead
Roosevelt's remark that the gov
ernment In the last year had re-
duced its direct contribution to the
national income by $2,500, 900 900 may
turn out to be more significant than
it appeared.
Despite announcement that they
would be liquidated, the spending and
lending machinery Of PWA and RFC
are being kept oiled and ready fo-
possible crisis. Chats supposed to
be q secret) One receives assurances
that the Notwithstanding program
will be resumed III needed" It seems
impossible 10 tell just how many. If
any, fingers Roosevelt has crossed
when he talks Of balancing the bud
get, but his general philosophy Gre
ates doubts as to whether he really
thinks he can do 1t without more
taxation in case the national income
isn't materially boosted before long
Despite many recent pleas to him,
Roosevelt says he doesn't think the
secret Of national economic success
is in relieving "the rich man" or
helping him make more money. He
holds that poor men spend money
much more rapidly than rich men,
that the dollars Of poor people thus
accelerate increase In national in
come much faster than dollars Of rich
people and that It consequently is
best to feed poor people as many dol
lars as possible.
Consequently, relief from the cap
ital gains tax, II Roosevelt has his
way, is likely to be confined to rich
men who will invest money in housing
construction.
\ \ \
No Concessions
As to the corporate surplus profits
tax, the president thus far sticks to
the principle that investors rather
than corporate managements should
decide whether corporate profits
should be distributed, invested In ex-
pansion or slowed away. He won't ac-
cept the New York view that the tax
Is wrecking the capital market. APP
parently, however, he does realize that
the tax is hard on small business,
which has no real access to the capi-
tai market.
No hint Whatever appears that
Roosevelt would be willing to modify
the SEC act or his power policy-or
abandon any Of his congressional
program.
Copyright, 1887, NEA Service, Incl