Montana labor news., 1938-06-02
Townsend Movement
Explained 10 Unions

Mr.. Park Lea of the Publicity
committee of Townsend Club No. l
gave a talk on the Townsend Ma
tional Recovery Plan at a meeting
of the Workers Alliance in Carpen-
tiers hall last Monday evening. On
Wednesday evening Mr.. Lea met
with a private group of young bust
ness and white collar" workers who
are considering the organization of
a Current History and Public Speak
ing class. He outlined the history
and philosophy of the Townsend
movement and how the passage and
operation of H. R. 4199 would affect
economic conditions now and in the
future. He presented a copy of the
Townsend Ready Reference Book,
and suggested its use as a textbook
when their class organization is
completed. A question as to whether
such a group, desiring a limited and
selected membership could obtain
and operate under a Townsend Club
charter was referred to the Town
send national office.
On Friday evening a talk was
made to two hundred members of
the Women's Protective Union at
their monthly meeting, and many
questions on the Townsend recovery
plan were answered by Mr.. Lea.
Twenty members of Butte Town
send Club No. l motored to a Town
send rally in Deer Lodge Friday
evening. Several, including Mes
danes Roderick, McVay, Kuntz,
Kennedy, Henry Pissot, M. J. Null
holland, Mr.. Sinclair and M. ].
Doepker, took part in the program
and Mrs. H. N. Kennedy made the
outstanding talk of the evening. She
said in part: I'VE all complain of the
burden of taxation, and many plans
for relief have been put forward by
sincere and public spirited citizens.
The transaction tax which is the
basis of the Townsend national re-
covery plan is the only one that
offers a solution. It has been tried
and proven. Quoting from an article
by M. w. Jorz, financial editor of the
Illustrated Daily News, Los Angeles,
California, published Dec. "a, 1887,
she said: "The United States could
wipe out its national debt and be
money ahead within five years if
the Federal government would adopt
the Hawaiian system of taxation
The Islands have solved their tax
problem by instituting a gross turn
over tax. Not only has it saved the
Territory from bankruptcy but il
has simplified the revenue collec-
ton to such an extent that the most
ignorant oriental peddler in the
street knows how to make out his
return. The gross income tax wen
into effect July l, 1885, with a levy
of l per cent on all incomes except
salaries and wages. The Territorial.
government was 1859, 900 in debt
had cut the pay of all teachers anc
government employees 10 per cent
and seemed hopelessly mired. At the
end of the first year the Territorial
Golfers had taken in So, 10000. II
Hawaii they have discovered thu
weakness in most forms of taxation
to be the extreme t~echnicalities anC
tiny loopholes that soon grow biz
enough for a truck to drive through
When they had a 2 per cent tax OF
profits, the orientals never made any
profits. They could do hundreds o
thousands of dollars of business anC
show everything sold at cost. Nov
everybody is paying a just share 0
taxes. They have restored the OLE
pay scales for teachers and govern
ment employees, and have not hac
to borrow a penny. The gross in
come tax is IL times as effective a
taxes collected once a year. Hawai-
gets its revenue every month an,
the money is turned over IL times
year, They have made their rat
Ia per cent now, and have nothin
to worry about. The loophole j
gone forever. If we had ever a
per cent transaction tax in tn
United States we could forget a
about the 81 billions debt and hav
money to spare within five years.