The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1943-05-08
Observations
June Collection
of Taxes Not to
Match Last One
BY Charles p. Stewart

June income tax collections are
not going TO be as satisfactory as
March's we're, according 10 a very
practical group OF economists-the
country's small loan men, or
sharks, as they are called by folk
who dare to antagonize them.
For the information of the few
earners whose stipends are too
trifling to be hit by this tax. II
should be pointed out that the levy
is made on an annual basis, but
that the victims may pay II quar-
terly IL they choose Whether or
not they really did choose to split
the agony up into four inStallments.
a lot OF them elected to do II that
way this year. It is not hard to
understand why they did so, either
considering the dent that a total
payment, at the present juncture,
Is calculated to make in the aver
age individuals bank account.
Well. Uncle Sans collections
we're rather Unexpectedly satisfac-
tory at the middle OF March,
The reason is explained by the
small loan people. Most OF the
money was borrowed in little
chunks of 500 or so, and now is
being paid for at the approximate
rate OF two per cent monthly.
The two per cent IS not so bad,
sut a great majority of the borrow
,rs probably had their savings
pretty well cleaned out for princi-
pal deficiencies, and will have TO
borrow again from scratch in June.
This will make the second quarter
worse for them than the first, and
the third and fourth will be still
more painful Meanwhile The loan
shark" will be Correspondinsiy ad'
ditionslly cautious. .
The sharks are worried about It
already.
She internal thing IS cumulative.
"Pay-go" legislation won't lift
the load. II comes too late.
March ISIS collections, then, were
fairly good. June's will be less so,
The third will cause a distinct
ache: the fourth super.ache.
In the course OF a generation
doubtless We will have adopted our
selves. but not for quite a while.
The popular theory is that the pinch
will pass with the wars end.
Practical economic betting IS that
II will continue indefinitely after.
ward. Governmental economists
speak OF It as mere emergency.
Loan sharks seem to think it will
last for a couple OF lifetimes.
The governments dope is that.
the war over, there will be such an
accumulated demand for civilian
supplies that industry will be fore
ed to hump itself to meet require
ments.
All authorities agree that require
ments will be tremendous.
But will civiliandom be able to
pay for what IT wants?
Supplying it won't do any good,
II the public can't foot the bills.
Won't ii be the same old thing
as after the last war?
There was a demand then. but
no market. Folk needed the stun,
but couldn't pay for It.
The supposition is that, IN to-
days instance, preliminary fixing.
has been more skillful than during
World War !. However. while
World War | was in a class by it,
self and its aftermath couldn't be
reckoned with so IS this war by
itself-incompsrable with anything
hitherto.
II is cheerful TO assume that now
is u, one time that We have in
sured against as to the future
What stumps me is
Why are scientific economists so
confident in advance, whereas the
loan boys are so skeptical?