The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1941-05-30

erations depend on good guessing
by economics students.
Taxation, for instance. concern
Ing which we're hearing so much
right now, is economic almost 100
per cent.
Taxes, as even pretty dumb
headed taX-fiXers are aware, can
be showed up so high that they
bring in less than they'll yield at
lower rates. That is, when they get
too darned high, they begin to dry
up the sources which the fXers are
trying to tap. It's the well-known
Flaw Of diminishing returns"
This is so elementary PROPOSE
ton that the veriest dubs recognize
ii. What some tolerably old hands
at schedule making are only just
starting to realize is the fact that
revenue raising isn't the only fac
tor in the equation.
Economic sharks like Director
Econ Henderson of the govern
ment's Office of Price Administra-
ton and Civilian Supply and Chair
man Mariner S. Eccles Of the Fed
eral Reserve Board have been rub
bling this idea into the beans of our
congressional taX-bill trainers Of
late.
They say they want revenue, yes.
But they also want taxes to control
buying trends. They want to pre-
vent prices from skyhooting, in
evitably to be followed ultimately
by a slump and hard times. They
want to tax automobiles, for ex-
ample, like fury, not for the sake
Of the revenue; they'll get less Of
that because civilian auto buying
will be discouraged by the high
tax; it'll be the working Of the law
Of diminishing returns. But dis
enlargement OF civilian auto buy
ing is just what Leon and Mariner
are shooting at. They deliberately
want to cut down civilian auto
sales, in order that auto factories
may concentrate on the production
Of defense supplies and stuff in aid
of the democracies.
Control Important
Leon and Mariner think control
Is at least as important as revenue;
maybe more so.
Both are as scared as death Of
price bulge.
Miss Harriet Elliott, chief Of
Icons consumers unit, asks for
the suppression of merchants
advertising, warning their Gus
toners to do all the buying they
can right now, because, so such ad-
vertisers predict, they'll be much
more severely stuck before long.
DR.. Carl Parry, one Of Mariners
Reserve Board specialists, asks to
have instalment buying restricted.
He urges larger payments and
faster and bigger instalments-
compulsory ones. His thesis is
that instalment purchasers overdo
'emselves. Consequently they
haven't the money to dig up
for Uncle Sans benefit when he
hikes their taxes. They also will be
in heck's own hole If a slump en-
sues.
William Green Of the AT. Of L.
and John L. Lewis Of the c. l. @,
United Mine Workers don't agree
on much else, but they do concur
in doubling that Leon Henderson
and Mariner Eccles can head off
imitation. r
John declares unequivocalIy,
There's going to be imitation" and
the miners are going to have their
share Of it in wages" In the last
World war, he relates, war ma
terials went up; then the stock
market; then commodities; wages
last Of all" This time, he swears,
the orders going TO be reversed.
Form of Slavery"
Bill Green isn't so outspoken as
TO imitation, but he does remark
that ana-strike legislation is a
form Of slavery" and that the
workers won't accept 1t ito defend
themselves against Nazi slavery"
Agriculture Secretary Wifk.