Evening star., 1940-05-01
u. 5. Chamber Is Told
Spending May Lead
10 Tax on Savings
President Of Investment
Bonkers Sees Government
As MonopoIizine Capitol

SF~"S SNPsNoI
Believers in Gigantic and ap-
parently perpetual spending lending
program" are manufacturing
perfect buildup for a tax on saw
1ngs," the United States Chamber
Of Commerce was warned today.
Emmett F. Connely. president of
the Investment Bankers Associa-
ton, declared the way to recovery
lis to work for resumption of the
flow OF savings into business enter
prise-savings which are now stag
mating in banks and other reposi-
tories. 1t must be through the reg
ular investment banking mechanism
that has proved satisfactory through
generations and not through untried
methods devised by theoretical gov
ernment planners"
Asserting that the securities law
had hampered the free flow of saw
1ngs into investment through inter-
mlnable red-tape and delay, he said
that, according to the Government
ust-do-it boys, if people are al
lowed to save In the future, those
savings will be sterile. The saver
Will be performing a disservice by
Withdrawing the amount of his saw
Ing from the flow of money spent
Tor consumption. There will be no
means for him to put the money
back to work by investing it."
Sees U. s. Governing Loans.
The Government, he said, will
take the savings from the people"
and use it for the spending lending
program while the businessman. in
stead OF going to investors to raise
money, would have to go, hat in
hand, to Government lending
agency"
There is mo shorter road" he
asserted. 10 state ownership and
socialism than the strong possi-
bility that many firms which bor-
row from the Government may be
foreclosed upon. The mortgage
at times must take over and op-
crate the property. In fact, the
plans for the Government banks
that have been outlined suggest that
they would furnish capital through
stock investments as we'll as loans"
Sees Committee Waste.
The recent questioning of indus
trlallsts by the Temporary National
Economics Committee on their views
of the need for more capital, he
said, was shameful waste of tax
payers money to build up a one
sided Casa case already decided
in the minds of the experts who
prepared it long before the hearings
were started"
The S. E. c., he declared, should
ask Congress to review the securi-
ties laws and modify them. The
law, he contended. was rushed
through "in reckless haste and has
a tendency to thwart all enterprise
in order to forestall a relatively
small amount of fraud.
Indicative of the chambers stand
on the administrations 'easy-money
policy" was an announcement by
the Resolutions Committee that
there will be discussion from the
floor on the Presidents fiscal poll
cies.
See Burden on Thrifty.
"The prolongation of the easy
money policy which has been i'm
posed upon the country for II years
is operating to weaken the economic
structure at most essential points
and this policy should now undergo
the gradual but determined correc-
ton appropriate to so fundamental
and an-pervading an influence" the
Resolutions Committee announced.
by obscuring the burdens resulting
from a mounting public debt it pro-
notes indifference where there is
every reason for grave concern and
shifts burdens to the thrifty. who
ind the returns from their savings
proportionately reduced, and who,
IN seeking security for their de-
pendence, must pay more for pro-
lection"
The whole system of private say
lngs and private enterprise is
threatened the statement declared.
Particularly singled out for discus
sion Is the bill which would dis
mantle the established system
of Federal Land Banks with their
principle OF borrower participation. :"
That there may be protection
from such proposals in the future,
the Farm Credit Administration
should be separated from the De-
partment of Agriculture and placed
under an Independent board free
from political or other extraneous
domination"
Du Pont Opposes F. c. A. Shift.
In the discussion which followed
the Resolution Committees an
nouncement, Lammot du Pont of
Wilmington, president of the Du
Pont Co., declared opposition to sep
aratlng the Farm Credit Admins
tration from the Agriculture Depart
ment. TT sounds to me as if they
would be setting up another board
We already have too many
Harper Sibley of Rochester, bank
er and owner of 15,000-acre farm
In Illinois and former president of
the chamber declared "all farm or
ganizations are opposed to weaken
ing the farm loan system" and the
Governments proposed action would
"leopardize the system
silias H. Strawn, Chicago lawyer
and also former president Of the
chamber, declared: Il don't see how
any one can resist. this resolution. ~
There was no further discussion
from the floor:
Frank Mayfield Speaks.
Business has been greatly at
fault in permitting many of the
practices of the administration to
arise in the last decade" Frank
M. Mayfleld, president of the Scruggs
Vandervor-B Barney Dry Goods Co,
st. Louis, said Dishonesty in high
places and the attendant publicity
stimulated the movement. Busi-
ness lacked a social vteWpoint and