Evening star., 1937-12-07

they seem to have been able to achieve
an increasingly efficient coordination.
Their business men, faced with taxes
greater than ours, have apparently
gone to work on behalf Of the general
welfare. Their labor, after the disas-
trous general strike Of II years ago,
has thought increasingly in terms of
the general welfare. Labor, industry
and government together have been
concerned with the position of agri-
culture in England. They have as
sented to a much more extensive gov
ernment activity on behalf of agricul-
ture than anything our own Govern
ment has done. Because the British
situation in some respects is more dif-
flcult than our own. these various
groups are being led to think about the
problem of co-ordinated policy in the
interest of all. The British govern
ment, for example. recently instructed
committee to examine the iron and
steel industry to find how 1t might be
co-ordinated best to serve the general
welfare. In making its report the COM
AAAAssSS oAhO3A6 VCAlCl p1ll1lkS autOCHLEO
that the government should set up a
body which might pronounce a judg-
ment on issues of public interest, 80
that there may be full and fair trial
OF the possibility Of combining in
dlVidual responsibility and initiative
with co-ordinated and cooperative ac-
tlon and full recognition Of the over
rlolng Importance of the national in
terests."
CO-ordinated Drive.
We here in the United States can
II we will. demonstrate our ability to
orlng about co-ordinated drive
against the business recession which
began in the late summer and is now
aHllctlng business men, laboring men
and farmers equally
Farmers, laboring men and small
business men are awake today in the
ohlted States in a way they have
never been before. They desire a world
OF greater security and abundance.
President Roosevelt knows the
thoughts and feelings of these people.
He also has a friendly understanding
OF the problems Of the larger business
men. He sees clearly a fact which
perhaps some of them have missed
that business confidence and busi-
ness prosperity cannot be built on any
other foundation than abundance and
security for the rank and file of the
people. He sees clearly, too, that to
build this basis for confidence. the
Nation needs the cooperation of busi-
ness and professional men as we'll as
OF laboring men and of farmers.
We cannot stop the recession If
each group attacks the prices and re-
turns Of the others. If farmers block
the efforts Of labor to maintain fair
wages, they themselves will be the los
ers when the workers have less money
to spend for farm products. II work.
ers carry on strikes against fair prices
for food. then they will be the losers
when farmers have less money to spend
for industrial products. If business
Is to strive above all to pay smaller
taxes and to keep wages and farm
prices down. then business will lose
the market for the things it has to
sell. No, we found out in 1892 that
recovery does not lie along that road
Let us not take that road today. There
are practical ways to end this present
recession.
Urges Legislation.
While some business men may not
agree, I believe it Is vital for Congress
at an early date to pass legislation
protecting the prices and incomes of
farmers and the pay envelopes and
working conditions Of labor. A prac-
tical ever-normal granary act for ag-
riculture will not only guard consum-
ers against the extreme hazards Of
shortage resulting from drougtts and
pests, but it will give the small busi-
ness men Of the Middle West and
South confidence In the stability Of In
come of farmers. In like manner a
well-drawn wages and hours law will
be defense against a continued down.
ward business spiral.
But, in addition to these measures.
others are essential. Farmers and
laboring men must realize the vital
Importance of capital to the general
welfare. Today we are witnessing
refusal of capital to invest similar to
that OF several years ago. It may be that
hazards to investment, real and imagi-
nary, are so great that capital either
will not or cannot come out Of hiding
and take the risks inherent in all
investment. But If our system is to
endure, business must take the Gov
ernment's word that Government
wishes it well and business must as
sumo those responsibilities Of leader
ship which business claims. Otherwise
Government will be forced TO step into
the breach.
AS far as taxation is concerned Con-
gress is considering what changes need
to be made. I believe that the basic
thought behind the undistr;buted
profits tax is sound and that large
industrial corporations should not be
permitted to be turned into investment
trusts merely to enable their owners
to escape just taxation. However.
small corporations in debt and the
large corporations desiring to expand
might be given more latitude and 1t
might even be we'll if the large cor
porations could spend part Of their
incomes on plant expansion without
being unduly cramped by heavy taxa
ton on money used in such expansion.
It is important for business men,
farmers and laboring men to realize
that change in the taxation structure
this year and budget balancing activi-
ties this year may not by themselves
cure the present business recession.
In fact, whenever Government spend
ing is cut suddenly at time when
private business is not expanding,
there is danger Of . downward spiral
for business. The same result can
come whenever private credit and
spending are suddenly cut OF without
provision for Government credit and
spending to take its place. Today, when
private capital is so timid, plans to
encourage it to 60 to work again will
be we'll worth while. It is 3 good