Imperial Valley press., 1938-02-11

England spoke Tor the presto
said that business ought to stop
complaining about the New Deal
and suggest a program of its own.
Criticism is always healthy. But
criticism should be constructive, as
we'll as destructive, Mr. Kennedy
said.
Since his comment was made,
however, the only slump-killing
program that has been put for
ward by businessmen has come out
of the capitol little capital business
conference of a week ago. But. be-
cause Of lack of time for thorough
discussion, their resolutions were
incomplete and fragmentary. Hence,
to start the ball rolling, am put
ting forward a rough formula. l
believe it would restore business
confidence. break up the credit
jam. release buying in heavy in
dustrieS, and boost activity over
night.
|. Embellishments needs
spiritual revival. Eachs group must
see the other fellows point of
view and try to apply the Golden
Rule This is the basic need of
today.
,. SPENDING: Federal spending
must be curtailed Public spend
ing represents a cost OF produc-
ton just as labor, materials, and
overhead. With the desire to
~
ing prices. other costs besides
overhead and materials must be
lowered Government expenses
are the result of unproductive
costs They are the logical item
TO slash and the quickest way
TO cut them is by some real old
fashioned public economy. To cut
off spending abruptly now, how
ever, would be deflationary and
dangerous. Here is my thought:
a. A Five-Year Plan calling for
a graduated halting emergency
aid should be enacted now to
be put into effect as soon as
the current situation clears up
"a little.
b. Local economies should be in
augurated on a similar plan
and program. Local budgets as
we'll as federal must he balanc-
cd TO avoid puDlic bankruptcy
). TAXES: Along with reckless
living and spending. taxes are
the worst of our troubles. We
can commit national suicide by
taxation. An immediate tax re-
form program Is essential. Con-
slider the following:
a. Repeal the vicious undivided
profits tax
b. Broaden the income tax base
by lowering exemptions.
C. Ease up on certain taxes in
the high incomes brackets.
d. Cut out the capital gains tax
which diScOurageS initiative.
c. Force all public employees TO
pay same income taxes as does
John O. Citizen.
l. Make new government and
municipal bonds subject 10
taxes as are all other securi-
ties.
Z. Put Social Security on
pay-as-yOu-gO basis with an
nual assessment based on act
ual cost.
n. Abolish state tariffs" by
scrapping local business taxes.
/. Tighten the tax load on over
burdened real estate.
]. Allow money spent out of net
earnings on new building,
plant repair, machinery. TO be
free OF taxes.
4. RAILROADS: Al the head OF
the list OF sick industries stands
the railroads. There are S25 5.OO0.-
100000 of carrier securities in
the hands of savings banks. in
surance companies. hospitals,
colleges. and individual investors.
Their huge investments must be
protected.
a. Freight rates should be
boosted temporarily-fo say
three years-about u per cent
Passenger fares should be up
ped "a cent per mile. Pullman
fares should not b. changed,
but should include cost OF par
lor chair or berth. Pooling Of
equipment and terminals
should be hastened. unprofit-
able branch lines should be cut
off
b. The unwarranted 1881 wage
increase for railroad workers