Evening star., 1939-06-21
Benson Sees Trend
Back Toward Real
Recovery Path
A. B. A. Chief Declares
Nation Is Returning
To Right Rood
Special Dispatch to The Star.

Special Dispatch to The Star.
DETROIT, Mich, June 21-De-
claring that I'VE have been off the
road but we are returning to it."
Philip A. Benson, president of the
American Bankers Association, in an
address delivered here today at the
annual convention of the Michigan
Bankers Association, said that he
felt justified in stating that our
system will survive, that prosperity
will come again, and that there will
be in this country a self sustaining
and therefore real economic
recovery"
Mr. Benson stated that "our
American economic system is part
of oul heritage of freedom and can
not be separated from it. If our in
dustrial processes and our business
! activities are taken over by the
state, we are on the way toward
losing cur liberties. I believe that
to avoid the results one must recog-
nize the dangers. I have no doubt
that the people of this country are
increasingly realizing the direction
the road to restored prosperity must
take"
Cites Prosperous Past.
Mr.. Benson. who is also president
Of the Dime Savings Bank of Brook
lyn, N. Y, declared that business
was not to blame because prosperity
had not been restored For gen.
erations our method of doing busi-
ness in this country has worked well
and American business and enter
prise has produced great prosperity
and the highest standards of living
the world has ever Witnessed" he
said.
1T is not fair 10 charge the condi-
tions that are the aftermath of the
most devastating war known to his
tory to failure on the part of busi-
ness. The war was a shock to all
human enterprise and activity. OF
course 1t was necessary to have wide
readjustments. The dislocations were
not, however, the result of the busi-
ness order. Business was really the
victim of them. I believe business
can and will function if given
chance.
LAS we study conditions in the
world today, as we learn of events
In other nations, we cannot fail to
be impressed with the fact that con-
ditlons in our country are infinitely
better than they are anywhere else
in the world" he continued. THE
conditions that prevail here are the
result of our American system of
free enterprise. Under this system
we have enjoyed the blessings of
liberty and because we believe in
it, we wish it to survive in order
that these blessings might be
passed on to our children and our
children's children. Business will
function and will again produce
prosperity if it is given a chance"
Urges Four Changes.
Mr.. Benson named four specific
things that would contribute" to
a return of prosperity.
First" he said, I'VE must elimi-
nate tax inequalities; abandon
forms of taxation that are unreas-
onably burdensome. Progress is be-
ing made in this direction both
through the proposed elimination
OF the undistributed profits tax
and the proposal to retain social
security taxes at their present level
rather than to increase them dur
ing the next few years.
Second. there must be a re-
duction in Government spending
national, State and local. Last
year taxes of all kinds took over
13 billions of dollars out of our
national income; nearly one-quar-
ter of that income Are these taxes
to rise so that we pay the tax
gatherer a greater proportion of
our income? We will have to do
this unless the people of this coun-
try realize that government is cost
ing too much; that it is costing
more than they can afford and
until there is demand for re-
duced Government spending.
Third, there should be no Gov-
ernment competition with business.
We recognize that Government
must act as an umpire. We rec
ognize the certain lines of business
charged with a public interest must
be controlled and regulated, but
we do not believe that Government
should be in business in compe-
tition with its citizens, and there
fore such competition should cease.
Fourth, encouragement must be
given to private capital to engage
in new ventures and the extension
OF existing industries. Risk capital
hourishes in an atmosphere of con-
fidence not where hostility exists.
1t will venture if there is an ex-
pectation OF a profit and when it's
right to seek a profit is recognized"