Detroit evening times. (Detroit, Mich) 1921-1958, 1941-05-22

economic purposes OF Keeping
you from spending that money
tor living comforts While the
factories arc busy on defense
Fdc.NCW Deal economists say
--lcy VIII bc ready 10 advocate
% as soon as our production has
reached ITS zenith, some umc
within q lCdr.
THIS Is not to say keynes
\ mysterious visit TO his pupils
i'm Washington was directly de-
signed 10 promote deferred
pay The pupils were sold on
the idea long before the master
arrived
The official story is Keynes
came 10 w Ellington rs "A
representative of tho British
treasury che is a fun time cm-
plOvC) 10 work out some admin
iSiratiyc details in the leaSc-lend
SClup He rs supposed 10 he
signing papers which would SIM
pity loaSc-lcnd machinery
Presumably also he may he
finding out how lcaSc-lcnd is
working and Offering suggestions
for changes. He works daily
with the President ) riCht-hand
man, Harry lIopkin. and spends
tho evenings and lunch hours
forecathCrnC with his disciples.
ANY economic selling he is doing.
therefore. may hc on i social
rather than an official basis.
OUT Of these social gatherings
- has come some confusing
explanations of a variety Of
Keynes plans, all OF which de
volvc down into the old original
Keynes plan spending.
The proceeds of his extra in
come lax, gildcd with the title
deferred pay" would be spent
Tor defense and otherwise. as the
money rolls in. How the govern
ment IS going TO pay the money
back TO you at the deferred time
is one OF the things Mr.. Keynes
is still working on.
Some of his Now Deal dis
-ClnlCS- daily MnEShininn at The
foot of the old master in the
rush of private parties for him.
say he would pay off with a levy
ON capital 1t would have TO
fall on business and corpora
tons. all except the largest of
which have insufficient cash to-
pay.
Assume he levied 20 per cent
Of The capitalization on all.
They would have 10 soil stock 10
pay the tax No ono could buy
1t except REC. II RFC acquired
20 per cent OF all the business IN
the country the approach of this
government toward socialism
would leave only a short putt
for the hole
-Four more such leHiae and HE
government would own all buSi-
ness.
VNIlS is too much 10 others of
n the Keynes boys who believe
the problem of paying should be
handled socially They want no
rePaymeNiS as all 10 the highest
wage groups only 80 per cent 10
me middle class. and 100 per
cent 10 the lowest class. Keynes.
himself, has considered this way
oil letting The government switch
hall The deferred pay, and thus
incidentally rcdiStributc some
wealth.
S'hl others want TO defer tho
solution OF the payoff problem
until the day thereof one of
me incest things about an
keynes plans is that YOU never
bother 70 decide whore YOU are
gong until YOU &c, there.
Who knows but what tho gov
ornmcnt would find. when tho
iWc for the payon comes. thai
Pine money could not bc raised
l1o solution thoroupon would
become simple reputation.
INCIDENTALI.Y the plan has
NOT been adopted by keynes
own British treasury. About >
per cent OF his idea is being
tried eNpCrimcntally. Income
iaN exemptions were reduced m
April with "A promise that tho
increased tax revenue there
from would hc repaid 10 tho
taxpayer after The war. But tho
sum of. such forced savings"
was limited 10 % pounds
. roughly $500 per person..
The British rejection of The
plan was not founded ON the
suspicion that II sounded like
changing the capitaliStic system
Iu,i 10 kecp people from buying
-t-r17Tzl1r+ef- ettrrtiS. wfICh could
be ratiOncd and thus controlled
without all This reforming taxa
ton llgamarolc Tho official
explanation Was that " involved
Too many administrative diff
culfice
Tho e7nc reasons may hc an
piled by the JNilcd States
trc1>iGN when thr scheme IS
brought forward. There are not
many of the H)vpcs kind IN Mr..
MorgenihauS DEPARTMENT
Distributed by KnE Features synd Inc