The Waterbury Democrat., 1941-09-15

If the United States hopes to curb imitation, 1t must accept priorities- not only for defense materials, but also in regard to the demand for credit, Henry II. Heimann, EXecu- tive fIanager of the National As- sociation of Credit Men, declares in the associations Monthly Business Review released today.
 unfortunately" MT. Heimann points out, "the very word inflation inspires In too many a this-is- where-I-came-in feeling. Yet if we act with vigilance and discretion, we may he able to avert some of the tribulations that uncontrolled iTafla- ton can bring.
 ITO outline some important steps, however, is easier than to gain pub- lie acceptance and official action, Nevertheless 1t is the responsibility of each of us to realize and act on the realization that the treasury oG the wealthiest nation in the world cannot continually draw on reserves, past, present or future. Thus 1t Is obvious that as individuals and as . nation we must retrench," he says. in listing c six-point program.
 Economy S0lvency
 Tt is likewise obvious that any defense program worthy. of the name must have in mind economic solvency. Our people are willing to do everything possible to build up e strong defense program. In return they have Q right to insist that Congress seriously turn to measures of economy on non-defense expendi. lures.
 Possible savings In this direction have been estimated as high as two billions annually. Whether this ap- praisal Is high or low, there can be no doubt about the beneficial effect on the nations morale of a serious attempt to eliminate needless spend- ing. And in this classification of needless spending would fall many items more-or-less Justified in nor nal periods.
 "second, we must pay for as much of our present outlay for defense aS Is possible. Yes, we must absorb heavier taxes now If we are going to keep our country financially sound. Widening the tax base, in- creasing the tax burden as equitably as possihle-there are patently neces- sary. Present burdens of some 12 billions annually are not the peak, if we face facts and act with cor. responding realism.
 Installment Curbs
 'Third, with all of our talk of sacrifice we must actually begin to put 1t into practice. That means we will have less consumers goods than we have been accustomed to having. The installment regulations have that objective.
 "Many people still believe install- ment sales were restricted because of some inherent danger in the com mercial credit structure or in in- stallment practices. The truth is that the installment credit problem was not out of hand. The primary objective of the new regulations is to force less consumer goods buy ing, to prevent competition for the materials that the national defense pEOSEdm requires.
 Fourth, we should help avoid bank credit imitation by doing our bit in the purchase of defense sav- ings bonds and stamps. Such buying should absorb the excess earnings, beyond taxes, that arise from de- fense-stimulated business activity. The defense bond program can be a potent check to a war imitation.
 "But beyond their anti-inflation- ary aspect, the bonds provide a sound investment at premium rate of interest. Their ownership will provide capital to the wage earner with which he can meet the post war crisis. Each employer of labor should be aware of their effective ness in future tax reduction pro- gram, for unemployment relief costs could be much less with wage earn CTS independent of government aid, if and when a post-war crisis ape breaches.
 Buy Bonds Now
 'There can be no doubt that with the plethora of funds avail able. the government could secure money at lower rate of interest than that which tt offers for Dc. fense Savings funds. It offers this premium rate because the real 0b- jective of the Defense Savings