Evening star., 1939-06-05

| IN m Ia problems,
NJ E wort h
c. Alvord, made
Charles G. Ross. last week before
the House Ways and Means Com
mittee.
Mr.. Alvord made a name for
himself as tax expert while assist
ing the Joint Congressional Com
mittee on Taxation. Later he was
a special assistant in the Treas
ury for several years under Secre-
tary Mellon. He testified for the
Chamber of Commerce as the vice
chairman of its Committee on Fed
eral Finance, and when he had fin
lshed Chairman Doughton of the
House Ways and Means Committee
praised him for his fine presenta-
ton"
Compliment Deserved.
The compliment was well deserved,
for Mr.. Alvord not only gave his
views on needed tax revision clearly
and with complete absence of
rancor toward anybody, but painted
in comprehensive background
with factual precision. His state
ment is an excellent summing up
OF the fiscal plight of the country
that plight which both the Treasury
and the Chamber of Commerce,
thinking pretty much along the
same lines, believe will be alleviated
to some extent by the projected tax
revision. Here are some of the
high lights of the picture:
On June 30, 1910, we shall have
completed a l0-year period Of
continuous deficits.
over this period the books Of
the Federal Government will
show the following results Of
operations:
ta) Total expenditures of s72,-
000000000 or $1,000, ,OOo.0O an
nually lin the last two years,
$4,000 100000 annually;
Cb) Total deficits of s31 ,OO0.-
100000, or an average of $1,000.
100000 year:
(c) Gross Federal debt which
will approximate s45,OOO,O00,O 900.
excluding guaranteed obligations
of about s5,000.0 100000;
(d) Gross governmental debt,
including State and local debts,
of about s63 3,OOO, 900 900;
te) An increase in the per
capita debt, Federal. State and
local, from s289 to S482 in the
space of 10 years:
60 An annual interest burden
on the Federal debt of more than
billion dollars.
Problems Before the Country.
The magnitude of the problem
before the country is further illus
trated by these facts:
There are now between 15,-
100000 and 2o,O00000 persons
receiving public assistance from
Federal, State or local funds.
The cost of relief to the Federal
Government alone this year Is
about $2.75O, 100000.
Industrial production last
month was down to 90 per cent of
the 19231925 average; factory
pay rolls were only IS per cent
OF the wages paid in the 1929
1925 period
The national income in all the
intervening years since 1929 has
not come within $4,000. 900 600
OF our minimum objective of $780,
OOO000.OOO.
Now if there is a ray of light to
mitigate the gloom in this picture,
1t consists in the fact that the Secre-
tary OF the Treasury and organized
business, as represented by the
Chamber of Commerce. are virtually
as one in the sensible statements
they have made to Congress on the
imperative need of corporate tax
revision as means of stimulating
the flow of investment funds into
private enterprise.
Commend Approach.
Says the statement of Mr.. Alvord:
I'VE commend his (Secretary Nor
genthau's) constructive approach to
the fiscal problems confronting Con-
gress and the country. 1t merits
the support of every citizen. Dif-
ferences of opinion with respect to
the application of the principles
urged by the Secretary are. of course,
to be expected. But there can be
no serious differences upon the OBJ
jectives and principles he has advo-
Gated"
The wiping out of manifest in
equities or other defects" in the
Federal tax laws, as urged by Mr..
Morgenthau, will be, of course, very
far from panacea for the country's
ills. but it will be good medicine
nevertheless. 1t is medicine that
surely, in the face of the demon
strated need to put idle private
capital to work, should be tried Mr..
Morgenthau deserves high praise for
his persistent efforts. finally sue
ceSsful, to get the Presidents o. K.
on his proposals, and the Chamber
of Commerce is entitled to a good
word for the conciliatory tone and
the instructive content of Mr.. Al
worlds remarks to the Ways and
Means Committee.
Quite apart from any tangible
good it may do, tax revision achieved
in an atmosphere of conciliation will
help the moderates on both sides
who are trying to stop the feud be-
tween business-or a large section
of it-and the Government. Is it
too much to hope that provocative
name calling has ended and that we
are now going to see a concerted
effort by business and the Govern
ment to get us out of the woods?