Evening star., 1937-11-11

New Deal and comedies that there
was some waste" but he forthrightly
states that the administration de
liberately" engaged in deficit spend
ing" to bring about recovery and that
today there must be an end to that
type of Government activity.
Perhaps the most vital and signifi-
cant statement made by the Secretary
apart from his wholesome and refresh
ing declaration of principles that
should govern reduction of expenses
and revision of our tax laws was this
comment which goes to the root of the
American system of private enter
prise!
THE basic need today is to foster
the full application of the driving
force of private capital. We want to
see capital go into the productive
channels of private industry We want
to see private business expand. We
believe that much of the remaining
unemployment will disappear as
private capital funds are increasingly
employed in productive enterprises.
We believe that one of the most i'm
portant ways of achieving these ends
at this time is to continue progress
toward balance of the Federal
budget"
Taxation Statement Clearcut.
Just as fundamental and penetrat-
ing was Mr.. Morgenthau's carefully
phraSed statement on the principles
OF taxation, something that should be
taken to heart by Congress, especially
those who write tax programs. ire
spective of what the resultant effect is
on the whole economic structure. Said
the Secretary of the Treasury:
I'VE do not wish to impose levies
which tend to dry up the sources of
tax revenue. The laws should be so
written and administered that the tax
payer can continue to make a reason
able profit with minimum of inter-
ference from his own Federal Gov
ernment; provided that the taxpayer
co-operates with his Government in
carrying out the purposes and the
spirit of the tax laws"
In the foregoing pronouncement is
the key to sound tax revision. The
Importance of giving business every
incentive to create jobs and giving the
investor every stimulus to put his saw
ings into productive enterprise cannot
be overestimated. Mr.. Morgenthau
has outlined the true basis of a good
tax program.
There are other things which the
Government must do and other things
on which it would be interesting to
hear the views of administration
spokesmen, as, for instance, how prices
can be kept down when arbitrary
forces within the economic system
both employers and employes-disre-
gard the sound economic principles
that should govern democratic econ
omy. Also it would be interesting to
see whether the administration takes
Mr.. Morgenthau's advice about "ex-
cessive drains" on the Treasury for
farm subsidies.
Surprises in Address.
There is much in the Morgenthau
address that might well occasion sur
prise. Naturally one wonders if Sec
retary Wallace agrees with the sugges-
lions about cutting down the expense
for agriculture, and whether Mr..
Roosevelt himself, who recently gave a
"hreside chat" on crop control laws
and wage and hour regulation, will 60
along with Mr.. Morgenthau's outline
In fact we're it not for the close per-
sonal relationship which exists be-
tween the President and his Secretary
OF the Treasury, the question might
well be raised whether the Morgen-
thau speech was not merely trial
balloon, or rather sop to the business
men for the time being.
Mr.. Roosevelt unfortunately has
permitted his spokesmen in the cabi-
net, such as Secretary Roper, to make
teassuring speeches to business every
how and then, or else he has called his
window dressing" cabinet into action
Ind let the press see that he is pre-
sumably taking advice from some of
the conservative members of the Dem
ocratic party instead of the brain