The Waterbury Democrat., 1941-01-24


 ing power that will result from the defense activity.
 'cNow Is the Time"
 Now is the time," Mir. Heimann declares, .''if we ever intend to do so, to balance our normal govern mental budget. And in the scope of the normal budget we must not omit inclusion of the regular, peace-time army and navy appropriations. To shift these regular items into the emergency defense budget serves only to becloud the effort at ball. ancing the normal budget.
 Certainly some of the expendi- lures made during the past years, particularly with respect to work relief, are hardly justifiable this year in view of the expanding needs of industry. The recent budget message, nevertheless, called for ap- proximately one billion dollars for work relief.
 Likewise it would be wise to cease public works of a non-military character, and to file away such pldllo OA PAOJCNOo oc hAC WOA CA1J until we may need them to take up the slack once the defense program is out of the way. And certainly our taxation program must be more soundly conceived and more equit- ably patterned if it is not to prove an unnecessary hardship upon that business and industry to which we Inol, Fo,. 4I1o ci,,ou,c of dofo,oco Y1ro. duction.
 Government and Taxes
 'It is the duty of Congress tc economize on normal items wherever possible, to draft tax laws that will distribute the burden equitably ir accordance with the ability of oul citizenship to meet it.
 But these duties cannot be dis. charged by Congress unless he con- stituents it represents have the pa- tience to study taxation inequitieS the courage to make recommends tionS for economies and the fair ness to support our legislators wher they endeavor to meet the situation in the light of sound economies.
 "Let us not, however, in thinking of our national debt of nearly 50 bill lions overlook the total of nearly 20 billions owed by the 175, ,O0O loca units of government from state: down to the smallest tax district This must be reduced. Thus Vt will offset to some degree the ris. ing national debt. Whether it is z federal, state or local tax claim mat. ters not. The taxpayers load is nc lighter, be it on his shoulders in one large bundle or several that tota. no less"
 Analyzing the relationship of the defense program to domestic produc- tion, MT. Heimann says that "the tremendously increasing consumer purchasing power that we are de- veloping will, of course, mean greater demand for semi-durable and con- sumner goods, which will in turn tend to stimulate new consumer produc- ing facilities.
 But we need to devote much labor and material and money to- wards reaching our goal in defense production Thus, if we do mol check abnormally rising consumer demands, we will be diverting some of our productive efforts from need- ed facilities in the heavy goods in- dustries where the effort is sorely concentrated upon defense.
 Normally, increase in consumer goods in a healthy economic devel- opment. Today, however, with our emphasis on defense, the increase in facilities for the manufacture and distribution of consumer goods.
 Our national industrial plant, great as it is, cannot meet this sud- den call for both increased defense instruments and greater consumer goods production.
 "As We emphasize defense, so we must correspondingly be content with less than we have been accus- toned to unless we are willing to make ourselves eligible for the pen alty of an even more severe post crisis reaction once the defense program sooner or later - has been completed.
 CurbS Dn Demand
 The flow of increased earnings of individual consumers must, there fore, be in part syphoned away from the usual channels of distribution. Taxation to appreciably offset de- fense costs is one way. But that will not alone suffice.
 "The second way, and one which should not at all be an alternative but rather a supplement to taxa tion, is that these extra earnings should largely be employed in the purchase by individuals of govern ment or defense bonds. This would limit expansion of consumer goods industries by curtailing the po- tential rise in demand occasioned by the defense program. You will recall that in the first World War the recurrent Liberty Loan drives helped to serve that purpose.
 Another point in favor of this type of program is that it will de- velop in the individual a sense of thrift. The increase in interest of individuals in securities and se- curity - and the better appraisal of the value of accumulated savings that resulted from the Liberty Loan