Evening star., 1939-11-13


Charles G. Ross. stored.
Whatever one may think of their
views, it is manifestly unfair to
brand them as "spenders" and let
1t go at that. To do this is to in
dulge in the familiar form of prop
aganda which seeks to destroy
through the use Of damaging la
bels Why would they spend, and
how? And to what conclusion, in
terms of the effect of their pro-
gram on taxes, do they come?
The answers are given in a men,
orandum which is being privately
passed around in New Deal circles
as basis Of discussion.
Carmody Speech Gives Clue.
A good idea of the conditions
which have prompted this re-exam-
ination of the spending policy may
be had by glancing at speech
made last week by John M. Car.
mody, administrator of the Fed
eral Works Agency. He said, as
others both in business and in gov
ernment have said, that there is
in sight no business pickup suf-
f1cient to make more than a dent
in the unemployment problem. He
gave some arresting figures. De-
spite the fact that employment has
gone up almost to the 1929 level,
there are still about 100000 out
OF work. The reason is the growth
Of population. There are 5000 900
more looking for jobs than there
were in 1929. The notion that a
war boom will take up the slack
has no basis when YOU add it all
up, the amount of new cash SPEND
ing by foreign nations, so far as
We can see now, will not give en-
ployment to more than 100000
men, Mr. Carmody says.
OF the 100000 unemployed,
there are 100000 forgotten men"
who have neither w. P. A. jobs,
nor relatives on w. P A., nor direct
relief.
"Busines will have to hire not
one million but several millions be-
fore it crosses this gap of $780,
600 and begins to eat into the num-
ber on w. P. A. or straight re-
lief"
This is the background Of the
present discussion of spending pol
icy.
Fear Administration Will Yield.
The New Dealers who are spon-
soring the memorandum referred to
are afraid that the administration,
out of desire to avoid new taxes
in a campaign year. will yield to
the demand that the new arma-
ment program be financed at the
expense of sharp cuts in the funds
for relief and public works. The
memorandum combats that view
and sets out the line of argument
which its authors think the admin
istration should use in promoting
the spending cause before the peo-
pie.
Urging "reorientation" Of the
spending policy, they emphasize
that internal soundness is equally
important with national defense"
that the long time required for cur
ing weak spots in the national econ
omy is no excuse for neglecting
them in a crisis.
The instinct to offer unselfsh
service In time of crisis runs the
argument, should be seized upon
and directed into satisfying work so
that further efforts will be easily
called forth. The national energy
that can be released is much larger
than dull leader would believe.
Says Weakness Is Shown.
This country, as compared with
others. has so far shown extraor-
dinary weakness. BY refusing to
face direct personal taxation like
that of England, for example. we
have fallen into unnecessary deficits
and also into hidden taxes, less
painful but poisonous to business.
Desire to improve our country will
be futile unless 1t rises to the height
OF making us willing to pay the
bill" ~
The brief goes on to say that the
administration cannot count perma-
nently on public sympathy as the
main prop of its relief policy.
The taxpayers" it is argued, "are
SICK OF the reliefers. The New Deal
cannot float much longer on recog-
milton of need and suffering. how.
ever real =. In order to de-
velop the constructive work of the
New Deal, it is necessary to change
It's reason. If 1t is to be carried
lurther, the work must be done
because the country needs it. not
because the unemployed worker is
hungry. This country needs to build
up. let the Jobs fall where they may.
The taxpayers have run out of
pity for healthy but unlucky workers
but IN 300 years they have not run
out OF interest in improving their
country
Bold Facing to Taxes.
The constructive development Of
the New Deal Is to be sought In a
change OF attitude from relief to up-
building, which will in turn make
possible a bold facing of the neces-
sity for heavy direct taxation"
The political risk of proposing
such a program is recognized, but,
It IS contended, candidates of both
parties may dare to take this risk
because of the extraordinary nature
II the times, the sober attitude Of
The people, and the high probability
hat the electorate would respond to
common sense and statesmanship."
Around the clash of thought over
spending, one may be sure, will GEN.
;er much of the debate In the next
session Of Congress. Heavy spend-
ng for relief in some form will have
% go on. In what form and to what
'xtent this relief shall be given
hese are the questions. The war
las merely obscured them for a
title while. On at least one point.
he spenders are in agreement with
many on the other side: The base
Il the income tax should be broad.
ned and consumer taxes should be
ut.
Here's chance for at least start
oward Q bold facing" of the vlaole