Evening star., 1947-06-25
Report Sees Doubling
|0f Incomes Possible
Within Is Years
D. II. As.et,s,.d Pros.

Dy me Asseeiofsd Press
Paul G. Hoffman, president Of
the Studebaker Corp, said today
the income Of most Americans
could be doubled within q
years by wise action" to smooth
out the national economy.
The industrialist cautioned Con-
gress that I'VE cannot live with
fluctuations such as that which tool
place between 1929 and 1882, wher
business volume dropped more thar
so per cent"
Mr.. Hoffman said another col
lapse OF that magnitude might cost
US our free economy
Mr.. Hoffman is chairman OF the
board of the Committee for Eco
nomic Development, group Of
businessmen organized to study the
problem OF maintaining a high leve.
OF productive employment.
Statement is Filed.
He expressed his views in state.
ment prepared for the Joint Con-
greSsional Committee on the Eco
nomic Report. This group is con-
sidering ways and means of ''pre-
venting depressions so that SUBJ
stantially full employment may be
continuously maintained"
Mr.. Hoffman, in laying down a
blueprint for Government and busi-
ness to follow toward this objective,
told the committee:
"If through wise action we can
make our economy operate more
effectively, the real income of paost
of our people can be doubled within
Is years. We can largely realize the
age-old dream of abolishing pow
erty."
The keystone in achieving this
goal, Mr.. Hoffman said, is creation
and maintenance of what he called
an economic program of dynamic
stability" which rejects the notion
that violent booms or busts" are
inevitable.
Restraint on Wages Urged.
Mr.. Hoffman said that for the
immediate future in the fight
against imitation, there should be
restraint on the part of all "ir
raising prices, wages and salaries
in recognition OF the common in
terest in avoiding a further wage
cost-price spiral"
The most vital function" of the
Government in the long-range
economy Mr. Hoffman envisages
lis to establish conditions under
which private enterprise can oper-
ate most effectively" To this end
Mr.. Hoffman said, the Government
should:
/. Stamp out practices that re-
strict competition.
2. Break down barriers to crea-
ton and growth OF small busi-
nesses, particularly by removing
the bias in the tax structure
against risk taking"
Curb on Federal Spending.
3. Repudiate Federal spending
for its own sake under any cir
cumstances," and time expendi-
lures for needed public works so as
to moderate booms and busts.
4. Give full support" to the State
Department "in the battle in which
it is now engaged to bring about a
great reduction in the artificial bar
riers to trade between nations >
Declaring there also Is IAN over
whelming need for world recon-
struction and rehabilitation" Mr.
Hoffman added:
IF we do nothing and wait for
the world to fall to piecese, Russia
will be there to pick up the pieces. .
I 5. Cut taxes substantially 'in the
near future" and make further cuts
later "as we see more clearly the
level Of national income to be at
tanned under a stable price level at
high development"
s. Extend unemployment compen-
satoin "as far as practicable to all
workers.
7. Fix monetary and credit pol
icies which provide that in prosper
Gus time loans should not be made
which will turn sour in a depres-
sion." In period of depression,
loans should not be called If they
are good risks"
Testimony Impresses OMahoney.
Meanwhile. Senator O'Mahoney
Democrat, of wyoming said he is
very much impressed" by testimony
that nearly all automobile dealers
are refraining from charging AL
the traffic will bear" for new cars.
The Senator was referring tc
statements by Charles E. Wilson
president of General Motors, and s
Sloan Colt, president of the Bank
ers' Trust Co. of New York, before
the Economic Committee yesterday,
Both men testified that despite
substantial price increases for new
cars, the industry could get more for
them if it wanted to.
Senator OMahoney refused to
comment on Mr.. Wilson'S statement
that propaganda from very high
places" against high prices Is dis
turbing influence" on the Nations
economy.
This was an obvious reference to
President Truman's efforts to per-
suade business to trim prices.
Mr.. Wilson added:
"Pessimistic talk down here Gin
Washington about prices being too
high Is a disturbing influence gen.
orally"
Maryland Income Tox
May Top ID Million
by The Assoeiated Press
ANNAPOLIS, Md, June 25.-State
income tax payments for 1916 are
expected to top s14,000.0 900, with
4 II. AL