Evening star., 1945-02-20
Postwar Job PIons
Plunged Into Politics
Argument Over Wallace Distracts
u. S. From Problem, Writer Says
By Dapid Laurence


By Dauid Laurence
What Is most unfortunate about the
controversy that has arisen over the
continuation OF Henry Wallace to b
Secretary OF Commerce is that the ar
gunient about how to assure 60,000,O00
jobs has been lost in fog Of cheap
politics.
If the post Of Secretary of Commerce
had not been handled by the President
as just political reward. and If Mr..
Wallace hadn't INDUCED himself in .
personal feud with Jesse Jones, the
country today might be debating in .
constructive spirit the problem Of Gre
ated investment capital and inducing
job-making by private enterprise after
the war.
Wallace touched only specifically on
the matter in his testimony before the
Senate committee, he did put his finger
on the weakness likely to be encountered
in the reconstruction period-the abb
sence OF satisfactory mechanism for
the creation of equity capital or what
is known as equity financing.
Orthodox bankers have rightly in
sisted that businesses deserving Of Short
term loans, based on their past record
OF earnings, can always get such loans
at the banks and do not need Govern
ment aid. But the bankers have never
been willing to look upon long-term
if1rta for -
. risk capital nature that should be
made by the owners or promoters of an
enterprise.
Subject Previously Debated.
The subject was debated in the years
Immediately following the depression,
and this correspondent advocated the
formation Of regional or local finance
corporations under Government super
vision, but privately operated, which
could take care Of this needed link in
our economic life. But since those days
the war has brought literally billions
of dollars of money to the business
world and there is undoubtedly ample
opportunity to interest private capital
In new ventures.
What Is most needed-and Mr.. WAL
lace could win the confidence Of smaller
businessmen II he advocated its Q
removal of the Determinations which
the New Deal has practiced IN the mat
ter Of taxation. Despite the outer
veneer of hostility to big business and
despite its protestations Of antagonism
to monopolies and cartels, the New Deal
actually plays ball with both monopoly
and big business far more than did the
Republican administrations of the past.
Thus, while processing great interest
in the small businessman, the New Deal
lets the big fellow get away with a tax
Of 90 cents on the dollar in many a
case. while it makes the little fellow in
the same line Of business pay as high as
30 cents. Congress, of course, is respon-
sible for this protection of the vested
interests, or rather this penalty against
the smaller business, but the New Deal
leadership has acquiesced in 1t.
New Deal Discriminates.
During the World War, the tax law
was 50 written that competitors were
treated on a somewhat comparable
basis, but the New Deal takes the side
Of the established business and protects
1t against the newcomer.
There are many. wrinkles in the tax
laws that favor the established business
against competitors, and there are many
unnecessary restrictions on the flotation
OF securities for medium-sized businesses
all of which Is task for the New Deal
but on which Mr. Wallace was silent.
Maybe If Mr.. Wallace is confirmed a.
Secretary Of Commerce he will start to
persuade the New Dealers to become
liberal toward the small businessmen
and the competitors who must be en-
couraged If new Jobs are to be created
and real competition is to be fostered
In the postwar period.
Reproduetion Rishts Reserved)