Detroit evening times. (Detroit, Mich) 1921-1958, 1944-05-11
BEHIND
The NEWS
-ByPauI
MaIlon

" Some men in the govern
ment are beginning TO look to-
ward a new postwar horizon.
Chester BowleS, the OPA adj
miniStrator. in a too-little-no-
ticcd speech Al Yale, Monday
took a glimpse at IT..
He suggested modernized lead
erShip by government FOR read
iuStment of tax and spending
policies so taxes would be de-
creased (to encourage private
Spending) as national income
falls and declining business APP
pears. with increased taxation
automatically whenever national
income eXpandS-thuS 10 exert
pressure for an even purchasing
power among the people.
But, he encountered some sun
blindness when he set forth a
three-point postwar program;
CD Government support for
high price and wage levels; CD
large volume of exports on
credit for world reconstruction,
and "a Il great shelf of truly
non-political, useful public
works. which backlog he called
the key" TO the whole postwar
SuStenance proposition. 10 be
used as business gets slack.
In this, he contradlCtS himself
and uses the wrong key after
having exhibited the right one.
as can be simply demonstrated.
HIGH prices and wage levels.
H truly must be maintained.
and by firm democratic leader
ship mot specific fixing OF prices
and wages which cannot work
in peace because it will create
more black markets than you
ever heard of, as Mr.. Bowles
seems TO agree.
But, great government credit
TO the world and a backlog of
public works do not fit in with
this desire, OF with his program
on taxes.
This government has no
money. 1t will wind up this war
badly S250,000, 100000 or
more in debt. Therefore. any
credit abroad or any public
works expenditures here must
come from taxes.
If this government lends TO
its own citizens TO start buSi-
ness. that move brings in taxes
TO the government and creates
business for the people, because
the money turns over here in
the purchase of materials. in
wages. etc. Thus it is truly con-
StructiVe.
But if we lend money abroad
TO rebuild houses. we must take
this amount away from our peo-
pie IN taxes and our government
gets nothing because il cannot
tax expenditures abroad.
THE only possible economic
good from this would de-
velop if the foreign recipient
buys our steel or machine tools
and thus keeps our mills going
and people employed. But our
immediate problem is 10 satisfy
years of pent-up demand in
this country which is enough to
keep our mills going for five
years.
Furthermore, when the trans
action abroad is over, the steel
used, the money unpaid. what
then? Then you can see the
unStabilizing effect of such
fictitious policy, because that
portion of our business is elimi-
nated-and if the money is used
10 build a foreign steel mill. it
is permanently eliminated. So
loans abroad can be justified
only on a charitable basis, as
money given away for a moral
reason. not economics.
People who think such loans
enable foreign nations to build
themselves up TO buy from us
are kidding the bookkeeper. be-
cause bankrupts get clear
only by use Of their own re.
sources production of goods 10
swap for goods. perhapS not by
adding TO an indebtedness they
cannot meet.
GO also with a backlog Of pub
~ lie works. The treasury
must pay for these in taxes
no more deficit spending, as all
agree.
This notion is founded on the
suspicion that the government
will not do a good Job of keep
ing mp the price-wage level in
the first place. II would have
no use for a backlog, if il had
constructive program il
thought would succeed.
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