Evening star., 1947-06-12

tI1at LlB WI1LcT '"
has said that American economic
aid to Europe was essential to the
restoration OF peace and to world
progress. But the problem is wrap
ped UP tightly In whether the Re-
publican and Democratic Parties
can work together In Congress to
authorize such policy.
On the horizon the clouds OF
discord are looming up. For sew
eral weeks the storm signals nave
been apparent. President Truman
and Secretary of State Marshall
may not be aware OF 1t but break
between the White House and Con-
sress at this time will come close
10 wrecking the whole international
economic program which is so vital
to Europe and TO America.
Era Of Bad Feeling.
To make any bipartisan policy
succeed there must be an era OF
good feeling. Mr.. Truman's veto OF
the tax bill will inaugurate an era
of bad feelings. 1t is not the failure
TO benefit by the relatively small
amount of money derived from the
tax reductions which will bring re-
sentiment but the principles in
volved.
The tax rates which the country
was asked to bear during wartime
were high. Individuals In all in
come brackets gladly endured the
cut In income because OF wartime
needs. Then came the repeal OF the
excess profits taxes for corporations
In order to assist in the reconversion
process. The general understanding
In Congress was that relief from
individual income tax rates would
follow Immediately after the repeal
OF the excess profits taxes.
Now 1t begins to look Is If the
President is not going to keep faith
but will play politics. His own
party went on record In favor Of
tax reduction at this session OF Con-
gress but urged different formula.
A difference In formula Is not
enough to justify . veto.
Experience in the 1905 was that
the lower the tax rates the higher
the receipts. This Is because tax
reduction Is 4 stimulus to the turn
over of business and individual
transactions. Some left wingers"
have been trying to argue recently
that reduction In taxes In the 1920's
caused the boom that ended In the
1929 collapse but the very thing
which really caused that break is
present today-a critical world stu
alton. There was disintegration then
Of American economic and financial
help In Central Europe and the
crisis started with the HAIRY De-
partment Store failure In London in
the autumn OF 1929 which broke
security markets and set or the |
trend Of depression.
A similar situation could arise to-
day. The export trade OF the
Ufnted States exceeds the amounts
We buy by sum estimated at
SO 600 900 900 q year. To pull the
bottom out Of world trade now may
precipitate q depression.
One Way to Avert It.
There is only one way to avert 1t
to eliminate class warfare In the
United States. stimulate business
and production and to finance the
world trade that is so essential to
the development of a strong Europe.
Unless the Republican Congress
cooperate on this program, it will
fail. II Mr.. Truman vetoes the tax
bill a partisan fight of such bitter
proportions will ensue that the
foreign economic program will be
lost in the shuttle. If Secretary
Marshall has any idea that his
own prestige will be ample to keep
Congress in line he is much mis-
taken. Should his chief, Mr. Tru-
man. produce an atmosphere of
bitterness In which charges will be
heard that the President is not
interested in fair play but In play
ing politics. the chances are that
the opposition to the enactment of
any measures involving huge ex-
penditrres for aid to European busi-
ness will be successful.
Gen. Marshall might as we'll re-
sign his job II the tax bill Is vetoed
and partisanship is revived on Capt.
tol Hill. Nobody will be able to
maintain bipartisan foreign policy
in such an atmosphere.
When the country elects a ma
jority In both Houses of Congress
from one political party, the Presi-
dent ought to pause considerably
before injecting a one-man veto into
the situation and starting an era
Of bad feeling that cannot but hurt
the Nation In the long run.
tFeproduetion rishts reserv.d)