Henderson daily dispatch., 1939-04-29
THE TAIL MUST GO WITH
THE HIDE!
BY Merle Thorpe, in Nations
Business"

The starry-eyed Don QuiXotes,
who have been hell-bent to make
America over, are turning reaction
ary. That is, little reactionary. They
are, like Lots wife, just taking
quick glance over the shoulder at the
flesh-pots. They look back longingly
at the 80 billion dollar incomes of
1925-29. They have begun already to
talk of the grand things they will do
for the country when the country
again produces the big money with
which to do them.
When that day comes. they say,
taxes won't hurt. deficits will disap-
pear, and all will be as happy as
marriage bell. They are ready, after
ten long years, to admit that there
was at least one aspect Of the Ter
rible TWentieS to be commended. A
business activity which enabled ma
ton to earn 80 billions is beginning
to appeal to the Political Planners.
They fear the awful lightning Of
swift November sword when the
people realize that their incomes
have decreased $40 per capita, and
their taxes to pay for such Planning
AlCNC OSCll AAOA AIiICO CtR poo pei SctDllct
They can only Justify IT'S per cent
increase in the number of public en-
ployees since 1880 and a 81 decrease
of private employees by expressing
hope that some day, somehow, an
80 billion dollar income will come
along again and set everything
Alright.
But, while glancing back envious-
ly at nation earning a generous in
come, they are not yet ready to ac-
cept the conditions under which such
business activity flourished They
would like to have their cake and eat
il, too They, in their hearts, desire
an 30 billion speed but are loath to
loosen the brakes, to confess the ways
and means necessary to attain such
a conSummation devoutly to be
wished.
What, in naked truth and simple
words, were those conditions in 1925
~? Are we yet ready to accept the
answer to this question? If so, it will
mean public confession that the mar
ket place is nighter than the Dis
trict OF Columbia, that there has been
no substitute Tor hard work since the
Lord spoke to Adam, and that there
IS no easy read TO prosperity by DO
litical magic.
Here are the conditions under
Which the United States realized an
30 billion collar income in 1925-29:
1here were not only low federal
taxes, but also decreasing federal
taxes.
Ihere was not only a federal bud
get in balance bl 4 substantial cir
plus each year.
The federal Government snent or1v
five percent OF TIE national income
8O billlons), as against Is per cent
of 60 billions today.
There was the eXhilarating effect
Of a decreasing public debt.
There was a fixed gold standard
Wages were advancing SLOWLY but
surely beyond the postwar neak
a gradually higher per cent Of tho
nations income going to workers a~
compared to investors.
There were few labor dicp,,+oe
managers and men dealing directly
with each other wy
Private business had relatively lit
tie competition from government
Finally, management, which dare6
the risk of bringing men and tno;~
and markets together, was encouraoD
ed and even applauded. Thrift w9c
a virtue. Public charity was moi COW
sidered badge of merit Washing-
ton was not expected to deal out IT,
hard-earfl~o national credit to ever