Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1937-11-26

gains taxes are destroying the i1itia.
tive of capital. The wicked undistri
buted profits tax penalties thrift. Rea
estate is depressed by back-breakinc
assessments. The present tax system
is unwise, unreasonable and destruc
tive.
8. Labor: Labor's misguided action:
last spring encouraged manufacturers
and retailers to build up top-heavy in
ventories. The cost of production was
boosted, profits reduced, and capita
discouraged Unsettled labor condi
tons have been major factor il
holding off new buying this fall. The
upping of building wage scales has
snuffed out the construction revival
The bankrupting demand for highe,
pay by railroad employees has been
the speparhead Of the current wave
of fear and pessimism which is sweep
ing the nation.
4. Utilities: Power and gas com
panies have been abused and tortured
in one of the worst Raw Deals on
record. Innocent investors have been
caught in the croSs-fire of a struggle
that has all the elements of simple
revenge and retaliation. Without poll
teal persecution, it is estimated that
the electric and gas industries would
have spent over $2,O0O00O 900 more on
construction work in the last five
years than they have actually laid
out.
5. Bonds: The average price of 40
leading bonds is down 10 per cent
from the January peak. The fluctua-
ton in interest rates has dried UP
new capital financing and has prac-
tically halted refunding operations In
January, over 100000 Of new issues
were floated. This month, new security
offerings will be almost nil AS a re-
suit, plans for plant renovations and
expansions, for building of new fac
tories, steel mills, and other big pri-
vate projects have been postponed or
entirely cancelled.
Stock Panic Added Fuel
6. Stocks: The market for shares
was pushed too high by speculative
buying last spring. Some shake-out
was normal. However, the unfair re-
gulations on margin buying and short
selling which made a tissue-thin mar
ket brought on a panic in October.
$25, 900 100000 worth of stock value
has been wiped out since last March.
This crash made a business slump in
evitable. Prospective home-builders
automobile buyers, clothing shoppers
and furniture purchasers have seen
their stocks drop 40 per cent. They
have quickly retreated to the sidelines
with a disastrous effect on trade, in
dustry and jobs.
Too Much Politics.
Z. Politics. For five years business
has been badgered and tormented by
experiments and reforms from
Washington. The intentions behind
these programs may have heen Ice
per cent honest; but the methods of
most have been impractical. Many
reforms, have simply rnaltreated
business, terrified capital and de-
stroyed initial Je. Cheap stump
speeches have drrayed one class d.
gainst another. Nearly every phase OF
private industry has been tamperet
with and molested by Federal regula
lion.
s. Religion and Education: The real
hope of America lies with the chur-
ches and educational Institutions. w.
will have better government only a.
we have better people. But what de
we see today? Many church denomin
atoms have become. largely "busi
nesses" operated by paid officials
secretaries and other salaried people
They seem primarily interested il
raising money to insure tEeir own job
rather than in spreading the teach
| ings of Jesus. High schools and col
legas have gone crazy over football
and parties, indicating an apparent
neglect of the real needs of the stu
dents.
Not Major Depression.
Despite these terrific obstacles, bus
mess surged up to a peak in 1887 that
was close to the all-time highs OF
1929. The recovery tide has been run
ming strong. Basically, the nation
| is still on the up-trend. Fundamen-
| tally, we should not be entering {
major depression. There is no over
expansion in Industrial output. Com
modify prices are readjusted. Inverl
| tories are running off. The banks arr
! in a sound position. Farm income i:
! the highest in ten years.
|
lies with the character of our people
but the future of business over tn,
next twelve months lies in the hand:
| Of the administration at Washington
| An honest moratorium on their ex
detrimental program would do more
.or business than spending $5,OOO,OOO,
100 on ornaments, public works, Of
| 5oondoggling. In the last two months
| thousands have been thrown out s.
Jobs, stocks have broken 40 per cent
business has plummeted is per cent
Millions Of Americans are inplorin,
President Roosevelt to stop our i'm
! practical, wasteful, reform program
which has retarded prosperity. W.
were willing, in the dark days d
! 19S3-S4 to let Congress try to add vi
two and two to make five 1t has tried
to do this for five years, but two and
two still add UP to only four. Now, we
| say, why try longer?" Business j
| now at the crossroads. It IS up t.
| Congress as to whether you are head
Sv1<e ~ - S,SO