Evening star., 1938-04-26
BUSINESS PEACE
HELD Jobs HOPE
0'Connor Urges New Deal to
Drop Warfare to Speed
Recovery.

Following Is the text of an address
on recovery problems delivered BY
Representative John O'Connor, Demo.
crat Of New York. chairman of the
House Rules Committee, last night on
the National Radio Forum. sponsored
by The Star and broadcast over a
Nation wide network Of the National
Broadcasting Co.:
First. let me take this opportunity to
publicly express my appreciation to
the countless thousands of our citizens
who have communicated with me re-
Gently in reference to the position !
took on the reorganization bill 1t
would be physically impossible for
myself or my office force to answer
each communication individually.
Tonight shall discuss the proposals
recently submitted to Congress by the
President. commonly referred to as
the spending program or pump
printing"
On the day the President sent his
message to the Congress I made a
statement in which I said in part
Pump prining won't do any good
II there is no water in the we'll"
l then proceeded to state how some
Of us in Congress would put water
In the we'll" by reassuring business
encouraging the investment of private
capital. etc. I shall attempt tonight
to develop those objectives.
Not Enough for Recovery.
Let me say at the outset. however
that many who join in my views, like
myself, do not oppose the spending
program" substantially. We realize
We are in for it"-because of what
has happened before-that If ou,
people need relief, we cannot "let
them down." but We feel the plan, II
1t is to be correctly described as a
recovery program" does not 20 far
enough-that it is only a temporary
palllative-a hypodermic, administered
to a badly smashed up victim who
needs thorough medication and pos
slbly amputation.
Some people fear that this new gam
BILE or mortgaging of the future. which
involves further creation of billions of
debts. coupled with monetary manage
ment, may create false imitation
boom. with consequent crash, leav-
ing us worse off than We were in 1888.
OF course it should never be lost sight
Of that more spending means more
taxes.
While for months some of us have
been advocating complete repeal OF the
corporate undistributed profits tax"
1t comes to us now as a distinct shock
that the House and Senate conferees
on the tax bill have agreed to retain
that tax in principle"
The outright repeal of that tax was
the first objective recommended to
dlspel the fear pervading our business
world. The fear may be only psyche
logical, but 1t Is there just the same.
1t Is doubtful if any thinking person
Will contend against the proposition
that the country generally attaches
great Importance to tax revision as one
necessary element in the restoration
of business confldence-and the out
right repeal of the corporate undis-
tributed profits tax" heads the list.
Initiative Held Destroyed.
The business world contends that
this tax has destroyed the initiative
to engage in new enterprise, has pun
ished those who succeed in new VEN
lures and has deferred the thrifty
from investing their savings In busi-
ness which would create Jobs.
In a recent national survey made
by the American Institute of Public
Opinion. this question was asked. In
your opinion. which will do more to
get us out Of the depression, increased
Government spending for relief and
public works or helping business by
reducing taXes?" Seventy-nine per
cent favored helping business by re-
duclng taxes. while only 81 per cent
were in favor Of pump printing" The
vast majority felt that prior pump
printing had not succeeded. that arti-
fetal spending means more taxes and
postpones the return Of prosperity. 1t
Is difficult to reach the conclusion
that all these people can be wrong
This country Of ours has been built
UP over $50 years with such a dis
tinctive American system OF free
business enterprise that 1t has been
the wonder and the envy OF the rest
Of the world. Private profit was en-
couraged. Mass production was de-
veloped as in no other part of the
world and has been credited by many
economists as the distinguishing fea-
ture of our business enterprise, which
has so outstandingly contributed to
our national wealth and our standard
OF living. that today the purchasing
power of our l20 millions of people
Is equal to that Of any 500 million
people in Europe or any one billion
people in Asia.
Hampered by Government.
1t is only recently that the further
progress of this remarkable march
OF business has been hampered by
overburdensome taxes and govern
mental interference and competition
with our established private and free
business enterprise.
Entertaining these views. some of
US have advocated as further detectives
~ ~A~tP oOA'O ouA PiSoC1lU
situation that not only should no
further boards or bureaus be created to
snoop on business and tell business
men how to run their own businesses,
but that the Government cease to
further compete with private business
and get out of the existing competition
with all possible speed.
To be specific. the unjustifable
snooping Of the Securities Exchange
Commission and the competition with
private industry by the Tennessee
Valley Authority are just two instances
against which complaint is made.
The Presidents program proposes
the spending Of an additional $780,
100000 for relief during the seven
months beginning July of this year
through the Works Progress Ad-
n1inistration
With millions Of our people out Of
work there Is probably nothing else
We can do. We cannot let our citi-
zens who are willing to work and