The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1939-1949, 1939-06-15
ECONOMIC HIGHLIGHTS

ECONOMIC HIGIILIGTTS
To attempt to analyze and pro
ject the future course of business q
present amounts to seeking q shor
cut to the insane asylum. Toda!
(and for months past) the purel,
economic factors that In norma
times determine what business an.
industry are going to do, have beea
at least relatively good. There is al
abundance of credit. There are al
most unlimited opportunities TO
expansion Of important ind,lstrie!
In both the consumers and produc.
ers' goods fields. The inventory sit.
uation, with one or two more Of
less minor exceptions, is favorable
And, according to trustworthy re.
ports, representative business, weary
OF almost endless years Of depres-
sion broken by occasional, sporadic
upturns, is chatting at the bit to 60
ahead. 4=n.@ .....e.
But business doesn't 60 ahead
New industrial financing remains
practically at the zero level. No
major basic industry Is expanding
on any important scale. Little
preparation IS being made for the
future. And Unexplained expan-
SION programs, some Of them Of the
most ambitious nature, are being
held in allegiance for an indefinite
time. ~ 81. .s.. .s.s
This isn't as pulling as it may
seem. For business Is still dominate
ed by the political factor. as against
the purely economic factor. It is
afraid Of what politicians may do
next. It fears for the future Of
earnings and profits. It fears the
constantly growing specter Of gov
eminent control and, In some cases,
actual government competition. It
= waiting las It has been waiting
Tor many n1oons-to see what hap
pens. And so far as it is able It Is
huSbanding its resources, spending
almost nothing that IS not neces-
sary to the day-by-day conduct Of
It's affairs.
You can find eloquent advo-
Gates who will say that is the wrong
attitude that business has more
than, discounted political conditions |
and isn't justified in its fears. You
can find equally eloquent advocates
who say that business is right that,
under present circumstances, it can
do nothing else. But, regardless of
opinions, that IS the way business
at-large feels, and that is the rea-
son depression hangs tenaciously
on.
In the light of this, a recent event |:
Is Of political significance as pos
sible factor in helping break the
1og-jam Of pessimism that holds
back business. That event is Sec
rotary Morgenthau,s "tax-reNef"
proposal to congress which is be-
coming increasingly economy mind
ed. Mr.. Morgenthau has the UNI
enviable job Of having to finance Ia
. government with an ever soaring /,
national debt, and he has long pom
dered the obtuse problems of taxa
hon. Some time ago it was announc- ,
ed that he had q definite program {
he wished enacted in an effort to
encourage business Then the pro-
gram dropped out Of sight, as the b
President reaffirmed his faith in s
the ding-for-prosperity policy. {
Late in May another change took 5
place. Senator Harrison, one of the I
leaders of the economy bloc in con-
gress. went to the White House. Il
And, according to Newsweek, "Har- I
z4son started in by telling President Ii
Roosevelt fatty that, having talked 5
for months about giving business !
the tax changes it seemed to want, ii
Congress intended to see business
get the changes whether the Pres i
ident liked it or not" The next day $
the President consulted with Sen /
ator BUnes, a Democratic whip :
who also tends toward economy. Ii
Result: A week later Secretary IL
Moegenthau appeared before q 3
Of the House Ways and
Means Committee with q detailed
tax-revision program recommended ,
by the Treasury, and, according to .
the Secretary, endorsed by the Presi- =,
dent.
Mr.. Morgenthaus program calls ,
for repeal Of the undistributed ,
MCKEE SAYS -.,. g