Evening star., 1939-05-21

to this purpose in 1887. In dollar VOL
ume these figures were $1,523oOO and
$4,l96 100000, in each instance represent
ing funds which stood idle for an inde-
terminate period on counters and shelves.
That the railroads and ptilities also
have failed to furnish their previous in
vestment opportunity was shown by Dr.
Currie in comparison of $2325 900 900
investment in these fields in 1925, as
against ST 549,0 100000 in 1887, the per-
centages of savings being 1877 and 1913.
1t was interesting to note in DR.. Cur
rie'S statistics that despite great Federal
expenditures in recent years, the total
of government" investment opportunities
is relatively small and has changed not
greatly from 1925 The answer of course,
is that States and subdivisions were
spending large sums for schools, etc, in
1925, whereas they have practically with
drawn from public spending in recent
years and let the Federal Government
take over the responsibility. In 1887 the
total of such investment was only $80l,-
100000, as compared to $527,OO0 900 in
1925.
1t was largely on this and wealth of
other data submitted by Drs. Hansen
and Currie that the basic ailment is
being diagnosed as an unemployment
of money, particularly in few fields of
great potentially, lending in turn to un-
employment of men and machines, in
effect an overall disease of idlenesS.
Several Cures Suggested.
On the basis of this diagnosis, and con-
currence in it was given not only by the
economists but by spokesmen for the
Nations greatest industries, several pos
sible cures already have been suggested.
Others will be. Eventually, it is hoped,
the committee will meet the challenge
of President Roosevelt to submit COM
prehensive program designed to restore
the Nation to habits of prosperity rather
than depression.
In some respects the suggestions al
ready sound like roll call of New Deal
experiments, in others they are dis
tinctly contrary to New Deal theories,
and in still others they are making an
initial appearance in the picture.
All, however, revolve around this con-
dition of stagnant capital and its COM
plement of idle men and machines
First and most comprehensive program
to be proposed was that of DR.. Hansen,
presented in summary as follows:
I'VE must stimulate private expansion
of productive equipment and new pro-
ductive construction. We should foster
and support, partly by public funds, the
development of new products and in
dustries.
"A railroad equipment company could
be set up, financed on self -liquidating
basis by Government funds empowered
to purchase new railroad equipment, and
lease it to the railroads as and when
needed
With respect to residential construc-
tion, we could we'll reduce the guaran-
teed rate Of interest allowed under the
F.. H. A. Considering the current sur
plus of funds seeking investment, the
present rate is abnormally high. and is
certainly a deterrent to private building
Favors Modification of Taxes.
Private investment expansion can be
stimulated by thorough reform of our
tax structure"
In amplifying this latter suggestion
DR.. Hansen explained that he favored
modification of social security taxes along
lines recently recommended by Secretary
of Treasury Morgenthau and now in
process of approval by the House Ways
and Means Committee. In addition Dr.
Hansen recommended removal or de-
crease of sales taxes and similar con-
sumption levieS, to be offset partly by an
increase in the middle bracket income
taxes And finally he urged creation of
a national tax commission to formulate
a long-range tax policy removed from
the Whims and vagaries of the politics
of each Congress-
That tax revision would provide an I'M
portant impetus to mobilizing the stalled
economy also was suggested, not unex-
pectedly, by two of the industrial leaders
appearing before the committee
Taking the lead in this respect, Owen
D. Young of General Electric urged elm
ination of the capital gains tax and ap-
plication of an undistributed profits levy
only where it was needed to prevent tax
avoidance. Alfred P. Sloan of General
Motors Endorsed Mr.. Young's tax crit
icisms.
Going further to suggest continuance
of Government participation in the task
of facilitating the flow of income, through
programs of both self -liquidating and
non-self- -iquidating public investments,
DR.. Hansen suggested that increased
emphasis on taxing savings would have
the combination virtue of helping to
move these savings into productive en-
terprise while partly relieving the strain
upon consumption funds and helping
meet the budget problem attendant upon
non -liquidating public expenditures
Utilization of Savings.
While at first glance such a proposal
might be translated as an attack on the
principle of saving it is perhaps more
fair to consider it rather suggestion for
utilization of savings.
In fact, an effective defense of thrift
as practiced by the leading corporations
in such key industries as automobiles,
steel and aircraft was arranged by the
committee stage managers in bringing
Mr.. Young, Mr.. Sloan, Edward r. Stet-
tinius, jr., of United States Steel and
Frederick B. Rentschler of United Air
craft to the stand to recount in almost
identical words how their companies
have worked their way to leadership by