The Wilmington morning star., 1947-02-03
By ARTHUR KROCK

WASHINGTON.-A very important economic
and social issue in this country was chosen
by Harold E. Stassen for the first formal
speech he has made since he announced his
candidacy for the Republican nomination for
the Presidency. 1t involves the question
whether laws and administrative procedures
are to be directed to encourage that enter.
prise called small business on which some
of the foundations of the United States were
laid.
Mr.. Stassen, making his position very clear
and specific on Kansas Day at Topeka, Jan.
20, gave the best insight to this social-econom
ic philosophy he has yet afforded to the
party he has offered to lead. This section OF
his philosophy, as revealed, is what used to
be known in the English-speaking world as
'liberal' until the term lost its meaning
through distortion and the spurious claims
thinking is that it matches what the Presi-
dent has said on the same subject, on one
occasion to this correspondent.
While other Republicans, also, though un-
avowed, aspirants to their party's Presidential
nomination, control the great avenues OF
publicity by holding official position, the form
err Governor of Minnesota must travel the by
ways. They can make the headlines and com.
mand space in the press and time on the
radio because as incumbents Of office they
can act and he can only exhort and suggest
But this disadvantage was Self-lrnpoSed by
Mr.. Stassen; he could have been in the
Senate today had he wished to be.
He determined, however, to make his bid
as a private citizen, the course pursued in a
much briefer period of campaigning by Wen.
dell L. Wilkie and forced on Abraham Lin.
coln by his defeat for the Senate in 1858. And
the Kansas Day speech is the first test OF
what influence in this role MI. Stassen can
exert in his party and how much notice he
can evoke among the people.
While Lincoln was actively seeking tbs
nomination of 1860 as a private citizen the
issues of slavery and secession were thrust.
ing the Republic to the brink of war. The
current problems of the nation and the word
are of larger scope and potentially even
more dynamic. Yet they are neither as ORA
matte nor as concentrated, and this adds to
Mr.. S~tassen's difficulties in his effort to gain
public attention.
But on Kansas Day he dealt with a situation
that is foremost in the minds of many people
and communities. and he offered counsel
which in time will be noted broadly. First, the
social-economic tax philosophy Of the New
Deal and, second, the advent of war to this
country, struck hard at the vitality Of exist
ing small enterprises and then almost closed
the door to new ones. Though the New Deal.
ers' stated objective was to aid the weak
against the strong, the small against the great.
III the economic area, their tax %revisions have
worked the other way.
Addressing himself to this condition, Mr..
Stassen made a statement which can be briefly
summarized as follows:
The Republican party should become the
champion of small business because 1.-The
future high productivity of this economic sys-
lem depends upon a high birth rate Of new
small businesses y y + and upon the growth
and development of many of these small
units" History shows that naturalization and
specialization of industry arrive with the con-
solidation and combination of industry. When
the many can make their own business de-
cisions there is a toughness y * y in an
economic system not found on any other
basis"
There must always be a strong big bust
ness element in the United States; only through
this channel can come efficient mass pro-
duction. But from this element monopoly
must be barred so that big business will al
ways compete with itself. Also, it must not
be permitted to dominate the Republicans
party" adding major political power to those
it already possesses.
The war and the tax structure decreased
small business concerns from 3,307, 900 in 1910
to 1883, 900 in 1914, and the trend is still
downward. Yet it was the ease of starting
such enterprises in earlier days, and blowing
back receipts, that laid the groundwork fol-
the production, high employment and excel
lent living standards that followed. The
smlthy grew into the factory, the local bus
line into the great transportation system
And this opportunity must be re-created.
Assistance must be given by Government
action in five areas-tax adjustments on prof
it's, reserves and capital structures of small
business; revision of controls Sc that it can
meet them without heavy legal and account
ing costs; amendment of labor laws SO that
various unions in a small unit must combine
on one bargaining representative; decentrali-
cation so that a company can do its govern
ment dealing locally; incessant vigilance
against the growth of monopoly.
M. Stassen. concluded by saying that his
proposals were not made solely in the interest
of those engaged in small business, but for
their long-range effect, as he saw it, on free
economy here and throughout the world. If
capital is not free. neither will labor be, he
said, and the maintenance of big business
is dependent on the existence Of a strong,
numerous small business community.
Republicans in Congress, candidates in
varying degrees of hobefulness, have already
put this subject On their agenda for study
and early action. But none has stated the
problem better or offered as specific a set
of remedies.-New York Times.