Evening star., 1937-10-21
Revise the Program.

IlC SlOSh COlldDS6, WIFI llS
recent black Tuesday, did not just hap
pen. Business had been dropping off,
and predictions of further recessions had
been announced by Government ex-
perts. The administration revised esti-
mates of the Government deficit for
the fiscal year, with an increase of
two or three hundred million dollars.
The President had called for a special
session Of Congress and outlined a
program that threatens to cost busi-
ness and the people added billions of
dollars if it is enacted into law. Market
psychology would have to be hard-boiled
indeed to stand up against such an
aggregation of black clouds, without
considering the threats of war in the
foreign situation.
The restrictions placed upon the stock
market by the S. e. c. have been
blamed by some for the collapse of the
rnarket-although others have insisted
that the restrictions are not severe
taxing capital gains and undistributed
profits has come in for its share of
criticism
The administration has promised a
revision of the Federal taxing system,
although it has made no concessions
so far regarding the taxes levied upon
business. The revision of taxes was not
included in the program set by the
President for the special session of
Congress, but presumably is to be tackled
at the regular session, beginning next
January
The administration would do well,
however, to make shift in its pro-
gram and take on the revision of the
taxing system without further delay. 1t
might conceivably, through this revision
give the country and business some
aid. At least it would let the country
and business know what to expect in
the way of new taxing and the repeal
of existing taxes.
What the wages-and- bill, pet
of the administration, will mean to
business and the country may easily
be coniectured. 1t will mean higher
costs of production and higher costs
to the consuming public. Prices al
ready are high and apparently going
higher. This does not make for greater
consumption, despite the fact that the
New Dealers insist that added wages will
bring greater buying of consumer goods.
The difficulty is that the higher prices
outrun the increase in wages.
The crop control BILL which is still
to be knocked into shape for sub
mission to House and Senate, also has
its costly angle. The estimates of the
cost of the proposed crop control pro-
gram range from s7O0,oOo,ooO to more
than billion dollars. No one knows
yet where the money is to come from.
It may be expected it will come from
higher prices which must be paid by
the people in the end. Here, again,
the New Dealers take the view that
the increased income to the farmers
will be an outstanding benefit and will
outdistance all i'll effects. That is their
guess, however, and not particularly
sound at that.
The coming Congress may well take
warning from recent happenings in the
stock market, whether the administra-
ton does or not. If it goes ahead with
q program that will again hit business
and raise prices to the consumer that
will add to the burdens of the people
one way and another, the lag in progress,
of which complaint has been made by
the President himself, may continue.
The administration has again and
again sought to alleviate conditions
through legislation. 1t has sought to
lift the country by its bootstraps and
by constant spending and more and
more regulation of business. The time
has come for greater consideration and
more study of the probable effects of
legislation-not to mention spending.
A revised program for Congress-, with
emphasis placed upon sound tax re-
vision and efforts to bring balanced
budget, would be salutary thing.