Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1940-04-11

make 1t straight 10 per cent cut
but the committee warned the House
that the cut already made by the
Committee was all that could be
slashed without endangering national
defense. That is, of course, some
thing no one would think of doing
especially in these troublesome times
when we know not what lies ahead.
The peace that is to follow this
war should provide for drastic re-
duction in arms or complete disarm-
ament. We are spending about 2 bill
lion 500 million dollars for national
defense in one year. If we could
take that money and apply it to our
national debt, or in promoting re-
covery, how much better it would
be for all. One thing is certain and
that is that the world cannot in
definitely go on bleeding itself white
for huge and what should be I'M
necessary ornaments. l can con-
ceive of situation arising where
it may become necessary to crack
down on the trouble makers as a
matter of self-preservation.
The Right Spirit.
Thomas j. Watson of New York,
started in as a Sc week salesman.
Last year he received a salary of 442
thousand dollars, on which he paid
an income tax to the Federal gov
eminent amounting to 294 thousand
dollars. In commenting on the tax
he said, 81 don't compare my net
salary with my gross. l compare it
with the Sc week I made when !
started out as salesman in a store
in Painted Post, N. Y"
That is the right spirit. 1t makes
me fidgety to hear well-to-do people
complain over their income tax. They
should be thankful that they are max
ing enough money to place them in
the income tax brackets. There is
no tax so fair as the one on incomes
because the amount assessed is based
on earnings and ability to pay. /
would be in favor of substituting
the income tax for all other forms
of taxation, save the inheritance tax,
which has for its purpose the break
ing up of overly big estates. Incl
dentally, this example shows ours is
land of opportunity. Where else
could Sc week clerk rise to be-
come the 442 thousand dollar head
of large concern?
Idle Money Hits New High.
The Federal Reserve Board reports
that in the week ending April 8, there
were billion 800 million dollars of
idle money in our national banks,
which establishes new high record
l do not have available figures show
ing idle money in state banks, but it
is safe to assume that the sum
amounts to several billion dollars.
Idle money means idle factories, un-
employment and low prices. No one
benefits from such a situation, GER
tainly not the banks. Economists
ascribe the excessively large volume
of idle money to uncertainty as to
what lies ahead of us. In other words,
capital lacks confidence. That being
the case the logical thing for us to
do would be to give businesses of all
kinds the green light. This can only
be done through reduction in taxes
and taxes cannot be lowered unless
we reduce public spending.
We all realize that these are UNI
usual times that require unusually
large appropriations, but such ap-
preparations should be kept down to
actual needs. This is no time for
experimentation, economic or social,
they must be subordinated to recov-
cry if we are to get out of this de-
preston.
Farm Leaders Oppose Bill.
The Farm Bureau, The Grange,
The National Council of Farmers Co.
operatives and the American Live
stock Association leaders have ap-
peared in opposition to the Jones farm
credit bill, saying that it would even
tually lead to Federal monopoly
of all credit facilities. First the
government would get control of all
farm loans, then business loans, fin
ally loans to everybody" That would
give Washington complete control of
the country financially, politically and
socially. In short, the operation of
such law would quickly bring about
Socialism and then maybe something
worse.
Crackpots, with their visionary and
impractical schemes, flourish in times
of depression. In such periods ev-
eryone is looking for way out. Then
the dreamer has his innings. In nor
NAL times he would be laughed out
of court with his crazy ideas but
when ailing we are ready to listen
to anyone who has a remedy to offer,
regardless of who he may be or what
experience he has had.
l would like to see the Federal
farm loan system restored to local
farmer control. In creating the bank
Congress intended that such control
should rest primarily in the hands
of local associations, but through a
succession of laws the control has
been transferred to Washington, and
with not very satisfactory results.