The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1942-03-13

-AtAH "a ar
to know IS. though Who's got any
such surplus now >"
Treasury officials, however, say
the reserve bank is quite right
about it. They indorse every word
IN the entire article.
Among other things It warns
bankers generally against making
loans 70 individuals 70 help pay
their income taxes. It's explained
that these taxes have been hiked
and are being liked higher yet, not
only because Uncle Sam needs the
cash. but also 10 foreclose the pub
lie against having a nickers worth
Of surplusage left after it has sat
isfed the revenue collector. And.
OF course, it'll have a temporarily
remaining modicum, If 1t can bor-
row the dough for the present
True, it'll have its borrowings 10
hquidate later and that. when the
time comes, undoubtedly viii send
its surplus up the fue The treasury
doesn't want to wait until then,
though; it wants that surplus eyap-
GRATED with 10 delay at all.
I can understand that folk may
be well advised not 20 postpone the
agony. Quite likely itn be stll
worse when it belatedly sets in.
However. the taxpayers ultimate
welfare isn't what the reserve
banks thinking about. It's aim is
to desurplusLze them Immediately
Bonds Out of Incomes
Tie bank makes another sug-
gesuon, which perhaps has a GER
tan merit, directly to income reci-
pien.s. though that isn't made in.
terconally for their benefit, either,
but as a surplus-reducng recon-
mendatiOn.
Some few people have a little
cash saved up in bank accounts
boarded" as the reserve bank ex-
presses 1t.
Well, a vigorous campaign is be-
Ing waged to induce thrifty souls
TO invest in defense bonds. Their
inclination Is to do It out OF their
already accumulated boards, spend
ing their current incomes for i'm
mediate living requirements. This
current spending is what the re-
serve bank is anxious to curtail,
since it'll be more and more infia-
uonary as civilian supplies grow
scarcer and scarcer and buyers
start bidding for them compet-
lively. Accordingly, the banks
plan IS to persuade them to 60 their
defense bond buying out Of their
day-to-cay incomes, forcing them
TO economic en- everything else.
To be sure, their previously
saved UP boards are a surplus also,
but that's a surplus that's more or
less frozen; the average citizen.
who may be willing 10 blow in all
he makes. as he goes along, is apt
TO be reluctant TO tap his bank &C
count TO meet deficits. Hell pinch
himself instead.
tn lower his living standard to
day, naturally, but possibly It's
sound economic reasoning, a. TO
the long run.
Just What the long 7ln u going
10 be like nobody knows.
Preventing q postwar dspres-
sion in advance never has heeu
tried before. How it will work this
time it Kill take the future to tell
One Type Loan Urged
While the Federal Reserve Bark
Of New York doesn't want private
banks making loans TO income tax
payers, Chairman Charles 3. Her
derson Of the Reconstruction Fl
nance corporation wants them 10
loan literally 70 small manufa ctur-
ers, 70 enable them to read lust their
plants for war production. lie
urged 2 bankers meeting in New
York City recently 10 be as accom-
modsting about It as they can. be-
lieving IL to be money safely in
vested financially and essential for
war needs.
The REC viii attend 70 Il II nee
essary, he said, bus It's 4 program
he doesn't like 20 con1plicate the
government with any more than Ia
unavoidable
Attorney General Francis Blddle
Is on the discussion vith comment
Of his own. Our war effort, he en-
phaslzed AZ a big meeting some
evenings ago, mustn't put a crimp
into .he New Deals long-run socio-
economic program. A lot OF edl-
toral and congressional comment
IS 70 the effect that Il can't help
doing so.
New Dealers hope Tor the best.
Ant-New Dealers hope for the best
from their angle.
We u see.