Evening star., 1938-02-21

Y a S6CuIlGy
pay roll taxes when the economic sys-
TEN had never before had thrust
upon it anywhere near such addi-
tional burden in a single year. REM
edy: Postponement of these taxes or
at least a so per cent reduction now.
Probability of action by Congress:
None until public opinion demands it.
Cause two: Artificial demand and
artificial boosting of prices, due to
payment in 1896 and 1887 of $2,O00.-
100000 bonus. Remedy: Gradual
working off of inventories of goods
and materials and gradual readjust-
ment of price level to meet natural
and not unnatural demands. Prob
ability of action: Process now under
way and may take three to five
months more.
Cause three: Monkey wrenches
thrown into entire business and eco
nomic mechanism by insane policies
Of Federal taxation known as "un-
distributed surplus tax" but actually
a tax on thrift and prudence and a
disturbance of the whole financial
structure of American businesses.
Remedy: Absolute repeal of the tax
without any face saving for the au-
thors or the politicians. Probability
Of action: Senate very determined to
do it. but House still hesitant Remedy
for voters: To defeat for renomlna-
tion or reelection next autumn any
Senator or Representative who has
the slightest sympathy for the surplus
tax, either lin principle" or in any
other respect, for large or for small
business. Probability of Congressional
action: Depends on how angry the
voters get about it and what they
write and tell Senators and Represen-
tativeS.
"Arbitrary Price Rises
Cause four: Arbitrary and unre
strained rises in prices. This was
due to several things, among them
the greed and stupidity of certain
bushes men who levied all the
traflc would bear" and the greed
and stupidity of various labor lead
CLIO "Aio SoNC 1lCCA W CIO1lOllllC
justification, but insisted on forcing
up labor costs and hence consumer
prices. Remedy: None in sight. but,
unless there is persuasive public
opinion and honest facing of the
facts. some governmental force-the
forerunner to dictatorships in other
lands-will inevitably intervene to
restrain both labor and capital in
the public interest. Probability of
action: Temporary halt now in wage
demands and in rising prices due
to buyers strikes.
Cause five: Stagnation of capital
flow. which prevented business ex-
pansion and the necessary increase
in job creation. This was due to
excessive restrictions imposed by the
Securities and Exchange Act and to
dangers of imitation and maladjust-
ment arising out of unbalanced budg-
cts and wasteful spending at WASH
ington. Remedy: Elimination of
wasteful spending through co-ordi-
mated relief and the resumption of
wise and prudent lending. or. at least,
use OF Government insurance princi-
piles to stimulate flow of private funds
as in housing. Probable action: Proc
ess going on now with better handling
Of budget items and increased activity
Of Government in starting capital
flow through insurance and direct
lending. May take four or five
months for healthful effects to be
felt.
Threats to Private Property.
Cause six: Direct threats to con-
tinued ownership of private property
and savings This was due to long
series of events, beginning with en-
trance of Government into competition
with $4,000, 100000 public utility in
dustry and eliminating in President
Roosevelt's appointment to the Su-
preme Court of the United States of
Justice Black, whose recent opinions
from the bench indicate a belief in
confiscation of private property owned
by corporations and hence by millions
of stockholders. Remedy: Refusal of
Congress to appropriate any money
for public ownership schemes and
issuance Of warning by Congress that