Evening star., 1940-12-08
Vandenberg Suggest,
6. 0. P. Hire Experts
To Advise on Policy
Stresses Fiscal Situation
Of Country in Reply
To Martin Invitation
By ]. A. O'LEARY.


Republicans should seek advice
from the best outside experts to
deal constructively with the prob
lens of Government financing
which will confront the new Con-
gress, in the opinion of Senator
Vandenberg of Michigan.
The Michigan Senator's plan for
constructive opposition was pre-
sented to House Republican Leader
Martin, it was learned yesterday, in
response to an invitation from the
Massachusetts, Representative for
suggestions.
'I think 1t is desperately impor-
tant that our opposition party
forget that we have frightful do
mestic problem on our hands in
connection with the actual Solvency
of our Government" read the letter
received by the Republican chair
man from the C. O. P. Senator.
The countrys attention will con-
stantly be diverted from this hard
cruel challenge right here at home;
it will constantly-and often delib-
erately-be diverted to the more
dramatic and popular war issues
abroad. Yet, the life of this Repub-
lie may we'll hang upon the prompt
and effectual program which shall
be devised to meet the domestic
fiscal crisis"
Series of Answers Called For.
To emphasize the broad scope Of
the fiscal issue Senator Vandenberg
told Chairman Martin it calls, not
for one answer, but for a series OF
answers:
For example" he wrote, what
portion of current deficits dnclud-
ing defense deflcits) should be met
by current taxation? What form
should this taxation take in order
to produce maximum revenue and
yet to produce minimum economic
dislocations? What should be done
with the Gold Purchase Act? What
should be done with gold itself?
What should be done with the Sill
yer Purchase Act? What should be
done with the stabilization fund.-"
After recalling that I'VE were i'm
measurably aided" few years ago
by meetings which former National
Chairman John Hamilton arranged
for many of us from week to week
with acknowledged experts in varl-
Gus fields of action who were brought
to Washington by the National
Committee for this purpose" the
Michigan Senator's letter of re-
sponse proposed:
would it not be possible for our
Joint House and Senate mlnoritles
to assemble a small but completely
eligible committee of external ad-
visors thoroughly representative of
the best economic brains in Amer
ica) to give us the benefit of their
concrete and specific recommended
tions in respect to all of these vari-
Gus phases of fiscal legislation?
Also Favors Research Agency.
"Or-even as an alternative or an
addition-let us employ some high
ly regarded independent research
agency like the Brookings Institu-
ton (and two or three others of the
same sort as they are available) to
suggest concrete and specific legls-
lation."
Senator Vandenberg, who was one
of his party's presidential prospects
at the last Republican Convention,
made it clear he was not suggesting
that Republicans should be bound
by the advice of expert consultants.
I'VE would still exercise inde-
pendent judgment" he wrote. But
we might thus obtain invaluable
suggestions. We might thus buttress
our own recommendations with for
midable support. We might crystal
lie and concentrate the issue. The
experiment could proceed under the
auspices either of our joint House
and Senate minorities or under the
auspices of the Republican National
Committee
Recalls Security Changes.
In support of the proposal. Sena-
tor Vandenberg recalled in the let
ter that "the only way in which
we finally succeeded in amending
the Social Security Act was through
the creation by the Senate Finance
Committee of special board OF
external experts, whose report
finally forced an abandonment OF
the full reserve monstrosity." He
had reference to the original Social
Security Act that contemplated a
reserve fund for Federal old-age
pensions which Senator Vandenberg
contended was much larger than
would be required for a Govern
t-operated system.
Senator Vandenberg observed that
'1f we were ON the road to bank
ruptcy' in 1933-as President Roose-
velt himself asserted in his message
of March 10, 1933--it is appalling
to contemplate what road We are
on now, and nobody seems to be
doing much of anything about it.
The protection of the public credit
is the first line of national defense !;
but we hear very little about it.
Even the renewed discussion of
loans and credits to England always
seems to proceed on the theory that
we have limitless resources to spend
and completely ignores the fact that
we cannot remotely pay our own
bills"