The Waterbury Democrat., 1939-05-18

Result of all this is major economic program which prob ably will be the New Deals one last shot at bringing back a rela- tive degree of prosperity. If they don't hit it this time they know the chances are slim in 1940.
 The program is now in fairly definite form, and on the whole will be welcomed by business. It can be divided in to three parts:
 1. A new spending program,
 partly in the form of national defense which is needed; part
 ly in the form of 8 new $1,-
 5O0,0O0,0O0 public works appro-
 priation.
 2. More emphasis on aid to
 small businessmen, chiefly
 through passage of the Mead
 bill.
 3. Taxation relief.
 TAX CUTS
 Tax revision now looks fairly certain, though the exact form of reduction still has to be ironed out both in Congress and in the inner circle. Even within the circle there is some difference of opinion.
 Heavy spenders such as Marri- ner Eccles favor elimination of the undistributed surplus profits tax without putting anything in its place. He feels that the tax already is so gutted that the Ad- ministration could afford to throw it out and gamble that business would pick up enough to bring new revenue even if no new tax were substituted for it.
 Roosevelt, however, disagrees with EccIes, sticks to the idea that if the profits tax is elimin- ated, money must be raised some other way. This probably will be by increasing the corpora tion tax in the higher brackets.
 Also in the tax cards is some relief on the unemployment levy, possibly also some important re- shuffling of old age pension taxa tion. Both are still in the forma- tive stage, but behind the old age pension revision is a plan to in- crease pensions to the aged, thus meeting the Townsendites part of the way, thus also increasing spending. This will be done with out additional tax burden by the expedient of spending the insur- ance fund as they go; in other words without accommodating large reserves.
 SPENDING PROGRAM
 Plans for the new spending pro- gram have now congealed, and all of the inner circle are for them. It looks certain that con- gress will go for new PWA pro- gram, and it is also significant that the Business Advisory Coun- cil, meeting last month, was unanimous that spending must continue.
 The PWA program will be ex- actly similar to the present pro- gram and will total $1,500,000, 900. Tn addition, the Navy will get some new warships, the Army more air. planes, and there will be more military mechanization.
 SMALL LOANS
 The final effort to bring healthy business upswing will be concentrated on the Mead bill, by which the government helps guarantee loans to be placed through local banks to small busi- ness men. This is aimed to tap the large amounts of private capi- tai now hoarded in the banks, and put it to work through small businessmen.
 This is 6 field left largely untapped by REC Jesse Jones, and the President feels keenly that healthy business throughout the country can only come by helping the small businessman, rather than by pouring funds into already bankrupt railroads or by steadying the shaky struc- turcs of expanded superstruc- lures.
 This Is the heart of the new program to date. More may be added to it later. What the ef- feet will be, of course. remains to be seen. |Hf TOMMY or CORK
 For several days the Capital btizzed with q rumor that Jesse Jones had ordered Tommy Corr coran off the RFc payroli and