Evening star., 1937-11-15
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q ANAL businesses In many lines,
and Of representatives Of aericul-
ture and Of labor.
Places Great Value
On SuSsestionx.
Out of long experience I place
great value on this method OF
getting suggestions from every pos
&ibIe source. Single answers OF
simple slogans will not cure the
complicated economic problems
which today fsce all nations.
To overemphasi0e one symptom
out of many-to overemphasize any
one panaceA that for the moment
appeals TO any one groups to
play with the lives of all the men
and women of America.
The ultimate answer TO the con-
ditions of today is . cordial and
confident corporation not only be-
tween government and every kind
Of citizen-but also between every
kind OF citizen and his govern
ment. As never before in our his
tory, the well-being of those who
have much, as well as those who
have less, depends upon con-
tented society of good will where
the good will rests on the solid
foundation that all have enough.
From these conferences and from
Athor so,rrAs yuonv .nurAsf;ove
have come to me and to other
members of the executive branch
Of the Government. Some OF these
recommendation are consistent
With each other, some are At COM
plete variance.
But these discussions make it
clear that we have enough wisdom
IN the country today not only to
check the present recession. but to
lay the groundwork for more
permanent recovery. If the people
are as willing as Government to
Nse the economic knowledge
gained in recent years. this recess
sion need 60 no further.
Underlying Conditions
mot Unfavorable."
With the exercise Of ordinary
prudence, there is no reason why
We should suffer any prolonged re-
oession, let alone any general eco
nomic paralysis. Despite some mall
adjustments, which can be cor
rected. underlying conditions are
not unfavorable.
The fundamental situation is not
to be compared with the far differ
ent conditions of 1929. The bank
ing system is not over-extended.
Interest rates are lower. inventories
are not dangerously large. We are
no longer over-extended in new
construction or in capital equip
ment. Specula ton requiring liquida-
ton does not overhang our mar
kets.
Obviously, an immediate task Is
to try to increase the use Of pri-
vate capital to create employment.
Private enterprise, with co-opera-
tion on the part Of the Govern
ment. can advance to higher levels
of industrial activity than those
reached earlier this year. Such
advance will assure balanced bud
gets. But obviously also, Govern
ment cannot let nature take it,
course without regard to conse-
quences. II private enterprise does
not respond, Government must take
up the slack.
What We can do covers 20 wide Z
field and SO many subjects that it
is not feasible to include them all
in this message
A little later will address you
further In regard 10 proposah to
encourage private capital to enter
the field OF new housing on . large
scale-a field which, during the
past four years. has failed almost
completely to keep pace with the
marked improvement In other In
dustries.
Looks Toward End
OF Tax Inequalities.
On the subject of taxation, in
accordance With my sslggestion OF
last Spring, committees of the Con-
gress, with the cooperation OF the
Treasury Department, are already
engaged in studies aimed 1t the
elimination Of any injustices In our
tax hvs. Unjust provisions should
be removed, provided such removal
does not create new injustices.
Notifications adequate to encour-
age productive enterprise, especially
for the smaller businesses, must not
extend to the point of using the
corporate form for the purpose Of
hiding behind it to reduce or
eliminate taxes In q way not open
TO an individual or partnership.
Nor should we extend tax privileges
70 speculative profits on capital
where the intent of the original risk
was speculation rather than the
actual development Of productive
enterprise Nor can we at this time
accept a revision OF our revenue
laws which involve Z reduction in
the aggregate revenues or An in
crease in the aggregate tax bur-
dens of those less able to bear
them.
We should give special considera-
tion to tightening inequitable bur-
dens on the enterprise of the small
business men Of the Nation. Small
businesses or even those of average
size have difficulties of financing
and distribution which are not
shared by large corporations.
Therefore. by special tax considera-
tion they should receive more equal
opportunity to compete with their
more powerful competitors. In this
way we may also find assistance in
our search for q more effective
method OF checking the growing
concentration of economic control
and the resultant monopolistic
practices which persist today in
spite Of antitrust statutes. A fur
ther search for additional methods
to meet this threat to free COM
petitive enterprise is called Tor 1T
this time.
The proposed Federal budget for
the coming fiscal year win shortly
be ready for submission to the Con-