Evening star., 1942-04-17
Henderson Believes
Taxes Should Exceed
Congress Program
Points to Cop Between
Buying Power and
Value of Available Goods
BY the AsNociated Press.

BY the Associated PreSs.
Price Administrator Leon Hender-
son indicated today that he favored
heavier taxation than that provided
in Congress pending $3.50 900 900
program. as one means of heading
of imitation.
Other ONCE of Price Administra-
tion officials have estimated that
consumer buying power this year
available by s17o00, ,ooo. 900. The
pressure of this "infiationary gap"
between purchasing power and con-
sumer goods, they contend, could
not be resisted by any price ceiling,
however sweeping.
Mr.. Henderson in an interview
said:
1T has always been my idea that
the way to plug the infiationary gap
is through increased taxes and in
duced savings"
Points TO Gap.
He refused. however, to say how
much he believed the tax burden
should be increased, saying merely,
take a look at the gap"
Mr.. Henderson's comments came
as other well-placed sources pre-
dicted that the proposed retail price
ceiling on virtually all consumer
goods might be expected next week
or the week after"
They indicated it would not be
presented by o. P. A. until after
President Roosevelt had presented
to Congress an omnibus imitation
control program repeatedly now in
preparation.
Meanwhile, the House Ways and
Means Committee neared the end of
Its hearings on the new tax program.
Secretary of the Treasury Nor
genthau, testifying yesterday, in
formed the committee that the
Treasury soon would start ringing
door bells once q month to stimulate
war bond purchases-and limited
broadly that the administration does
not contemplate compulsory savings.
Plan In Preparation.
"We have a plan In preparation, +"
he said, to stimulate voluntary pur-
chases, which have dropped from a
rate of $1,000. .000, 900 a month in
January to $500, 900 900. But he
quickly explained that the Treasury
did not Intend to paint houses yel-
low" or put people behind barbed
wire" If they did not buy bonds.
| Secretary Morgenthau. intensifying
his drive to head OFF forced savings,
took four representatives Of labor
and management from General
Motors Corp. before the committee
to explain that company's scheme OF
voluntary payroll deductions for
bond purchases.
Walter Reuther, United Automo-
bile Workers &c. I. o. official, told
the committee I'VE believe that the
voluntary method is the real way to
mobilize the workers." and said,
I'VE are trying TO get our people" to
divert 20 per cent of their income
to war bond purchases.
Favors Voluntary Plan.
Mr.. Reuther said that he believed
the voluntary plan was better than
compulsory savings program and
would produce more revenue and
added that his union already had
purchased $50, 900, 900 worth of bonds
"and we're working on the second
$50 100000.
H. w. Anderson, a General Motors
vice president, said that a pay
roll deductions plan was inaugurated
last fall, but the results were dis
appointing, at first. An organized
sales promotion campaign is ready
now in an effort to step up still
further the purchases.
John M. Jerpe, another corpora
ton official exhibited charts show
ing the efforts that have been made
to induce voluntary savings and an
nouncing a bond drive for victory"
He said that Campaign managers"
had been named for many plants in
an effort to get 100 per cent employe
cooperation.