The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1944-06-23
Employers Should Take Part
in Better World Says Babson

New York City, June 23-During
the past few weeks have directed
this column TO various groups OF
people-colored and white work.
ers. union labor. parents and invest.
ors. Permit me this week to give
certain employers some good ad.
vice. This especially applies to the
older men. There are many young
forward-looking employers, but the
stage has been stolen by the die.
hards."
Installnsnt Sales
As part OF my education, I at
tend group meetings OF various
kinds-church. social, scientific.
labor and employers. All these
groups-with the exception OF the
latter-have a definite constructive
legislative program to make a bet.
ter nation. We employers, however.
present little constructive legisla.
ton. We have asked only for lower
taxes and TO be let alone" / am
sure this is a mistake.
Some economists recently dis
cussed whether installment sales
which have temporarily been re-
stricted under Presidential Orders
during the War-should be regulat.
ed after peace comes. They claim
that TO stabilize employment, in.
stallment purchases should be en-
couraged during depressions but re.
tarded during booms. This would
be sound practice; but what do
most employers say? They reply.
No The government should let
US alone to handle our own credits
as we d-mn please"
Accident Compensation
Labor has made an appeal for
much more extensive accident COM
pensation laws through a govern
ment insurance company. The argu-
ment is that employers will hesitate
to employ returning soldiers who
may have any defect Of eyesight,
hearing, lameness. or otherwise, be-
lieving that such persons are more
liable to accidents. To encourage
employers TO employ such. labor
leaders urge an extension OF indus
trial insurance. Do most employers
agree? No, They insist that the
government should keep hands
off,; while their insurance friends
yell Communism" Is such an atti-
tude by manufacturers and bankers
wise?
Regulating inventories
Credit men have suggested that
legislation be enacted whereby in.
ventories would be regulated in
some way. One reason for unem-
ployment is because stocks OF raw
materials and merchandise at times
become so large that manufactur-
ers and merchants suddenly stop
buying. These credit men claim that
normal inventories tend 10 keep
employment normal. But here again,
too many employers say, MOI"
They demand free enterprise"
freedom TO initiate or deflate and
freedom TO speculate or to hoard.
Too many OF us want freedom for
ourselves without thinking OF the
other fellows welfare.
Taxing Unused Depreciation"
Accountants believe that some re-
lation should exist between depre-
citation, requirements and corpora
ton taxes. They say that during
depression employers continue to
charge vast sums to depreciation to
save taxes, but they do not spend
the money. Hence, this policy
makes the depression SO much
worse. They believe that during
depression, when depreciation mon.
ey is not spent for requirements,
it should be taxed; while during a
boom, 1t should be taxed II it is
spent. Well, this suggestion has
caused some employers to set up
a big howl. Perhaps the idea. is
crazy; but there is no harm in dis
cussing 1t.
Just one more illustration: Many
farsighted insurance men believe 1t
is not healthy for the country to
forbid savings banks, life insurance
companies and other institutions
from buying equities To force
them to buy so many governments
is keeping funds away from small
businessmen and. homebuilders. at
is Ok, they say, TO forbid US
from buying the stocks OF corpora
tons which have bonds outstand-
ing; but, in the interest OF the pub
lie, we should be allowed to invest
q certain proportion OF our funds in
the equities OF companies having no
debt-especially during depres-
sions." This sounds sane to me.