Evening star., 1938-04-18
President Is on Right Track
In His Economic Planning


Intense as is the position Of The Star
as to the Presidents message, know
you will permit an emphatically dis
senting view:
l. The fact that 4 year ago, at the
height Of the recovery program, there
were about the same number Of un-
employed as there were in 1882 indicates
that we are in q shrinking economy
that Is, the machine is replacing man
power and monopoly is keeping the floor
Of prices too high. The first named
substitution Of machine for man power
at rapidly accelerating rate-we are
not now in position to attack, or at
least an effective method of attack has
not been devised; the second impairment
Of purchasing power by an increasingly
higher floor of prices can. of course, be
curbed by Stricter regulation of monop-
olies "yardsticks' like the r. v. A., etc.
2. If, under this shrinking economy.
purchasing power is to be revived at all,
it must be done by Government spend
ing. The quickest and most effective
way, of course. would be by some pro-
gram like the old C. w. A., but for any
steady revival of the long pull, P w. A.
and w. P. A. offer the best possibilities.
ernment puts to work by "priming the
pump" business will take out of en-
ployment through the amazing advance
Of machine substitution for man power.
Therefore, the Presidents plan is sub
stantially very moderate one, and its
chances for success are moderate and
largely dependent ta on the control of
monopolistic prices, and CD the degree
to which the added purchasing power
can be directed to the groups which
most need 1t.
But let US never forget one thing; it
is possible to have recovery. and a far
greater recovery than in 1886. and still
have 10000 900 men out of work. don't
know whether the President recognizes
this. If he does, then he should be de-
voting his attention to heavier pro-
gram Of taxation. For If business
through accelerating chronological ad-
vances and monopol!stic prices. cannot
increase employment-and obviously 1t
cannot-then Government must do so.
To do this, we must become reconciled
to embarking on permanent program
OF public works, financed by increased
taxation. And in this program OF in
creased taxation two things are neces-
sary:
ca The Government must not pay
interest on its own credit. For example
the interest on the $4,000 100000 debt
contracted since the New Deal is $780,
100000 yearly. A central government
bank, advocated by Andrew Jackson,
John Tyler and Daniel Webster. the
principles Of which have been embodied
in monetary control bill introduced
by Representative Binderup of Nebraska
and which has the support of more than
100 congressman, should be carefully
studied
'b) Higher taxes in all brackets, espe-
cially from $1,000 up. must be brought
into closer parallel with those of Great
Britain. A careful study of the whole
British taxation system would disclose
interesting lessons for us.
Finally, let us not deal in such balder-
dash as that given out by Representative
Taber Of New York. Says Oracle Taber:
You can't prime the pump when the
we'll has gone dry Here we are, the
richest country in the world-richest in
resources, and 1t is intimated the we'll
is dry!
The President is on the right track.
He is entitled to the thanks of the
American people. My only complaint
is that he was little slow about it.
But when he does move-boy, does he go!
HUGH RUSSELL FRASER.