The people's voice. [volume] (Helena, Mont.) 1939-1969, 1940-09-25
Government
PROPOSES
BORROWING
(By Federated Pressl

WASHINGTON. - Problems of n
nancing the United States giganti,
arms program moved to the front her,
as congress entered the home stretcl
/. of defense appropriations.
Appropriations and authorizations
this year total over Is billions with
expected tax revenue falling far be
hind
AT present there appear to be two
schools of thought with regard to the
Financing of the program, according to
reports current here.
/ One school advocates paying the bill
by taxation principally with taxes to
be levied mainly on such sources of
income as tax exempt bonds and
wealthy corporations.
| The other school of thought contem-
plates borrowing the money from the
banks and similar Institutions, the
borrowing to be repaid later through
taxation
A meeting to discuss the borrowing
swank hotels September II, according
to reports. Attending the meeting
were new deal officials and high mo-
Iguls of the banking industry.
The plan proposed by the admins
|tration representatives, these accounts
said, contemplated the governments
borrowing of $4,000, 100000 from the
idle funds in the banks.
1t was argued that these funds
would be put into circulation through
the defense program and would do
much to stimulate employment.
Taxation, it was argued, would re-
duce the amount of money in the
limit the production of consumer goods |
and would stifle segments of industry |
not directly concerned with the arms
program.
After the meeting, the accounts con-
tinued( one of the leading bankers
present, representative of the group
that has bitterly fought the new deal
for most Of its eight years. declared:
81 agree with everything that has
been said. The charge that the new
lealers are against capitalism Is COM
)letely unWarranted.'
Among those present for the admin. /
it was stated. were Security
Ind Exchange Commissioners Leon /
Henderson and Jerome Frank, Emil s
)espres of the board of governors of [
he Federal Reserve system, Richard s
Hilbert, assistant to the secretary OF
commerce., Laughlin Currie, admins +;
rative assistant to the president, and !
Benjamin Cohen, general counsel of
he National Power Policy Commits ,
ion.
On behalf of the moguls were B. j. :
of Kuhn, Joeb & Co., e. G
'. Connely, president of the Invest y
lent Bankers association; T. j. Cool Il
1ge, chairman of United Fruit Co.; q
,obert L. Garner, vice president of
he Guaranty Trust Co., and Noel Sar- +
ent, secretary treasurer Of the Ma
onal Association of Manufacturers.
1t was indicated that one of the in
ucements offered the business repre-.
entatives was the relaxation of gov
-nment regulation" of business. AS
ng as production continues smoothly, =
lie administration will keep hands
T, 1t was stated by administration u
representatives., according to reports. u
Vigorously protesting the proposed W
proving of 20 billions was Benjamin &C
Marsh, executive secretary of the
copies Lobby. "That the Investment m
ankers association and the National m
3sociation of Manufacturers should
in conspiracy to rob the American vi
ople of life, liberty and the pursuit OF
happiness, is quite in keeping with m
happiness, is quite in keeping and VI
be expected" Marsh said. Gl
"That government payrollees in the Tn
per brackets, masquerading as eco ge
mists, should be party to such WI
nspiracy reveals why the alleged
W deal is on the scrap heap. De
tax-exempt bonds and dis
y other kind of bondage to pay for sti
Tense is a subversive activity OF lac
} most vicious sort which merits sta
,mpt attention by the FBI - but Cd
MT get it," Dol