Imperial Valley press., 1939-10-18
By MINOR SIMMS

work. but which would if enacted bring
establishment and despair to the aged
and needy of this state. He gave per-
mission at a recent press conference to
use his arguments against the pension
plan, and branded it an attempt to find
"a shortcut to Utopia
Surely the aged and the needy of
California, who have come to look upon
the President as their champion, should
heed his words in this matter. They may
be sure that, if he believed the 30-Thurs-
day proposal had one chance in ten of
success, he would not oppose it.
The plan will not workout, pretend
ing that it would, we find it would cost
every employed worker in California an
average of $625 year in taxes That is
the estimate of Arthur j. Altmeyer,
chairman of the federal social security
bureau. He is himself an ardent New
Dealer and a strong champion of the
underprvileged and unemployed
Still pretending that the plan would
work, we find that it would cost the
people of the state S31 100000 a year
over and above what the cost of similar
pension plan would be if cash instead of
warrants were distributed to old people
The 81 million dollars represents the
extra four cents a year, over the face
value, required to be placed on each
dollar warrant. Thus, if we are going
to pay people over so years of age $50 a
week, why not pay it in cash and save
ourselves S31 100000 a year?
Promoters of this plan, who have
learned" themselves thousands of dol
lars through small assessments on those
xuhn fhoir re hoi,
expensive organization), say that Ham
and-Eggs will not increase taxes. They
have depended upon oratory not logic,
to convince listeners that this is So
Actually, there is no ethical economist,
living or dead, who has ever been able
to find a way by which the government
can put $S11 100000 year in circulation
without increasing taxes. And S811,00O,-
900 is minimum estimate of the amount
the Ham-and-Eggs plan would attempt
to put in circulation.
When you hear that the plan will not
increase taxes, remember this:
The plan itself provided for a NEW
three per cent gross income tax, and it
does NOT provide for the repeal of any
old taxes. No new taxes? The plan it
self sets up new ones.
Compared to the real fault in the HAM
and-Eggs scheme, however, all this talk
of taxes and costs is mere quibbling.
The real fault is that the plan would
throw the state into certain bankruptcy,
torpedo business enterprise and ALLEVIATE
millions of dollars in eastern and mid
western capital which might otherwise
be invested in California.
ask. "Our present system is no good"
Of course there are faults in the pres
ent system. But it would be utter fool
ishness to change for something worse
and that is what we would do if we
approved the Ham-and-Eggs plan.
There is no theorizing about the fact
that outside capital would not come into
California if the Ham-and-Egg plan
were adopted. 1t is fact, already demon
strated by the reluctance of investors
from other states to release money in
California until the pension scheme has
been disposed of. 1t is further demon
strated by the preparations made by
many old-time California businesses to
move their headquarters offices out of
the state if the plan passes. These are
not threats. They are precautions taken
by business men for the protection of
their own investments. And it is these
investments which help pay the wages
of California laboring people. Without
them, employer and employe alike will
be stranded.
Another vote-getting device advanced
by the Ham-Egg pomoters is the prom
ise that warrants can be exchanged for
cash 80 days after they are issued. If
that is so, where is the cash coming from?
New taxes? They tell us there will be
none. Stamps placed on warrants that
are kept in circulation? If the warrants
can be exchanged for cash there won't
be enough kept in circulation for such
financing. Loans by the peoples bank"
set up under the plan? The act itself
provides that the bank cannot loan mon
ey or warrants deposited with it on call
deposits.
Possibly they intend to grab the money
out of thin air to exchange for warrants.