Evening star., 1945-01-25

Building today, almost two hou
Committee opened the second
bill of rights grows in reality, so
private industry will grow in
strength, that it is designed to make
enterprise work in the same great
manner in peace as in war.
J, Private enterprise must do the
job, but it must be greatly expanded
to provide 60.OO0,O00 jobs after the
war, Mr.. Wallace said. New plants
and equipment of all kinds will be
needed and they should be private
| ly financed, as far as possible, he
declared
"The Government should guar
antee this lending against special
risks which will naturally arise"
Mr.. Wallace said. 1T should pro-
vide new and expanding credit at
reasonable rates"
The same principles should apply
as in Federal housing operations, he
said.
He visualized $4,000, 900 900 new
private investment each year-which
will mean millions more jobs. The
business will be privately owned and
operated, but the Government will
share the unusual and abnormal
risks, he said.
Elaborates on Eight Points.
For more than an hour after fin
ishlng his prepared statement, Mr..
Wallace elaborated f1uently on some
of his eight points. engaging occa-
sionally in good natured repartee as
committee members questioned him.
At the outset. Senator Pepper,
Democrat, of Florida. supporter
Of the former Vice President, told
him the story had been banded
over the country that one of the
fantasies attributed to you is that
you favor taking the taxpayers
money to furnish a bottle of milk
day to the hottentots and to build
sort of iva on the Danube"
Smiling, Mr.. Wallace replied that
the fantasy to which you refer
was spoken not by me, but by a
president lof the Association of
Manufacturers"
Mr.. Wallace explained he thought
the story grew out of remark he
made half seriously and half in jest.
while seated next to Nine. Litvinoff
(wife of the former Russian Am
bassador) at dinner that what this
war was about was whether every
one should have quart of milk He
said he repeated it later in speech.
Reference Explained.
"Of course, what meant was that
the causes of the war were economic
and that what people wanted was
enough to live on" he continued.
He said he has noticed around
Washington that even New Dealers
are deceived by the propaganda of
their opponents. He drew a laugh
from the crowd when he added:
1T is amazing how even the elect
can be deceived"
Small Business Problems.
The examination took more SER
ious turn when Senator Pepper
quoted a witness before the tempor-
airy National Economic Committee
several years ago as saying, in ef-
feet, that the value of RFC loans to
small business has been small.
did I understand you to say
more consideration should be given
to small business?" Senator Pepper
asked.
Mr.. Wallace answered that since
1913 small businessmen have found
it increasingly difficult to get equity
financing, which he later described
as long-term financing by the issu-
ance of stock. In order to stress his
belief in the need for better financ-
; ing facilities for small business in
the future, Mr.. Wallace continued
IF we want in 1870 to have the
Fords and the Edisons develop, it
will be necessary to make possible
a type of financing not available
today"
That's rather a severe indict-
i ment of the last IL years of this ad-
ministration, is it not?" Senator
Brewster, Republican, of Maine
broke in.
Mr.. Wallace said he felt it is "a
severe Indictment of the last 80
years." declaring that it began in
1918 when the Federal Reserve Sys-
tenn took over, land bank examiners
became very meticulous."
/ Questioned by Bailey.
i When Chairman Bailey later
questioned Mr.. Wallace on this sub
ject, he asked him if he advo-
Gates equity financing of small busi-
ness-that is by the Government
taking stock in these concerns.
| Mr.. Wallace said he hoped 1t
could be done by having the Gov
lernment provide insurance locally,
but he asked permission to answer
the question in more detail later on
because he regards it as having an
important bearing on postwar pros
perity.
Senator Bailey asked him to bear
in mind in preparing his answer
that common stock in concern Is
voting stock, implying that If the
Government provided financing by
:. that method it could exercise con-
troll.
Earlier, Senator Pepper invited
Mr.. Wallace to tell the committee
about his private business expert
: ehee to answer arguments that are
being raised against him.
Smiling, Mr.. Wallace asked Sem
ator Pepper, What have they been
saying about me?"
Discusses Experience.
4 Then he answered his own ques-
ton by remarking, do you think
the feeling of the American people
is that only millionaire should be
Secretary of Commerce?,
! Mr.. Wallace then explained that,
. while he had been editor of a farm
publishing company, he had no con-
troll over its hnsiness affairs and
that the only concern over which he
Exercised business responsibility was
q the Seed Corn Co., which he began
to develop in 1905.
4 While Mr.. Wallace was testifying
Senator Aiken, Republican, OF Ver-
mont, predicted to reporters that
the Iowan's nomination win be sup