Evening star., 1943-10-12
Senate Given
Postwar Plans
To Aid Business
Three Chief Points
Outlined in Report
By O'Mohoney
BY J. A. O'LEARY,

LhpdllulHS pIUuuCJlOn Will De
the key to prosperity after the
war, but it will have to be pro-
tected from domination by either
government or private monop-
olies II the democratic system
Of free enterprise is to survive,
Senator OMahohey, Democrat,
Of Wyoming, told the Senate's
special Postwar Economic Plan
ming Committee today.
Reporting as chairman of a sub
committee that held hearings IN the
West recently, he made three chief
recommendations:
/. Enactment of a Federal charter
law to define the powers and re-
sponsibilities of corporations. 50
drawn as to enable big and little
business ITO bring TO the market
the goods and services which must
be produced If the national debt Is
ever to be paid"
2. Revision Of the patent laws to
limit the monopolistic use of patents.
Asks Tax Study.
8. A thorough study OF incentive
taxation to stimulate the investment
Of private funds in productive en-
terprise
Private enterprise cannot endure
the competition of either monopoly
or government" Senator OMahoney
declared. as he read his report to
the first meeting of the full COM
mittee. I'VE have seen enough in
the war effort to know that little
business as an independent factor
in our economy has been steadily
pushed toward the brink of the
precipice. To me there is no escap-
ing the conclusion that unless we
put idle money to work in the post
war world We will be face to face
with the greatest economic disaster
that this or any other nation ever
suffered"
Senator O'Mahoney said the
"stupendous industrial production
this country has achieved to meet
the necessities of this war, and the
accomplishments of Russia. teach
us that the so-called economy Of
scarcity was most tragic error"
Cites War Production.
Arguing such an economy is not
necessary, he continued: I'VE have
produced so much in America
that the income of the people has
scared to heights never before
imagined. Surely, if We can expand
| our production for war We should
at least try to follow an expanding
economy for the purpose of peace.
There can be no expanding economy
unless the productive capacity Of
every man is released and kept free
from restraint and any form OF re-
strictive power"
Senator OMahoney's report was
accompanied by 70-page objective
analysis of postwar plans being
worked on by score of agencies in
and out Of the Government. This
analysis shows, Senator OMahoney
said, that "a large school of thought
holds to the belief that 1t will be
the task of the Federal Government
by system Of public works projects,
nationally financed, to provide the
opportunities for employment.
Indeed, one finds that even those
who advocate private investment, So
called, do not rule out public ex-
penditures. Some writers and think
ers who believe themselves to be
| advocates OF free, private enterprise
suggest that the Government pur-
chase commodity surpluses or guar
antee consumer industries against
| loss. United States Government
loans for free enterprise are urged
/ by many who look with horror on big
! government, and many war con-
tractors are urging even now the
immediate payment upon the terni-
nation of contracts of substantial
proportion of the claim even before
the total amount of the claim has
been finally adjudicated. From every
quarter come demands for continued
public expenditure to finance recon-
version after the war.
L recite the figures on the public
debt to illustrate the magnitude of
the task which the Federal Treasury
is being asked to finance with red
ink"
Interest Payment High.
Senator O'Mahoney proceeded to
show the national debt on August
81 was sl46 655, 300, ,000 On the same
date the Governments annual in
terest obligation was $4,000. 900 900.
The actual amount of interest
paid by the Government during the
year l943 amounted to $1,000 OOO.-
900. That means that in a single
year the interest charge which the
| United States Government must
meet has increased sl0O0.00O .OOO-
and the end is not yet in sight"
The Wyoming Senator predicted
the national debt will exceed $780,
000,0O0000 by July, 1914. To indi-
cate the size of the debt, he said
there are only "a corporations with
assets of $1,000 100000 or more, and
all of them together amount to s73,-
550,000,000. The Senator also de-
clared the present debt exceeds the
assessed value of all of the 4S States.
The assets of the "a corporations,
added to the total assessed valua-
ton of all of the States amounts to
s2l6,S60 100000, or only slightly
more than the present national
debt limit he continued. This
comparison clearly delineates the
difficulties that are involved in a
mere dependence on national de-
flcit-spending to finance postwar re-
organization. 1t is surely not sufi-
cient to say that public spending
alone can meet the need because we
shall owe the debt to ourselves.
when at the present low rate of in
terest We are carrying an annual
interest charge which is greater
than the normal annual revenue of
the Government throughout the
greater part of our national exist