Evening star., 1947-01-07
Letters to The Star
Another View Of idle Money
as 1t Affects Depressions

10 tne EQltor oa Inc StaIs
A letter which appeared in The Star
on January under the title Idle Money
and Depressions," by A. Craig, pointed
out the very interesting possibility that
we might prevent depressions by using
taxation to keep money from lying idle.
There can be little doubt that idle
money is a potent factor both in initiat-
| ing depressions and in prolonging
them. One need only recall the fran
| tic appeals from Government leaders
| during the last depression for an end
| TO boarding to realize that these well-
| informed men were conscious OF the
| fact that excessive savings were basic
| cause of trouble.
But Mr.. Craig's proposal that idle
money be regulated by means Of the
income tax seems 20 be an inadequate
solution to the problem. He stated
| that If the income tax rate were
made very high and exemptions were
also made very high, then those Who
have money to spare would find some
use for it to keep Uncle Sam from
| getting it.
| But the income tax, as We know it
today, is not applied specifically to
idle money. 1t makes no distinction
between income which Becomes idle
| money and that which is spent for
ordinary consumer goods and invest
ments Moreover, by reducing the high
| premiums paid to those whose busi-
ness efforts are most effective, the
I kov ,fac
to discourage business investment and
| throttle individual initiative.
May I suggest that what is really
needed for the control of idle money
is not the income tax, but a paper
savings" tax-that is, q tax ON the
money which an individual owns. and
has not spent when the yearly tax re-
turn becomes due. The tax could be
graduated, like the income tax, so that
those who hoard the most would have
to pay the highest rates, while mod
est amounts of individual savings
would be altogether exempt.
This tax would encourage spending
and thereby stimulate business, while
still allowing each person the free
enterprise, provided he takes it promptly
in the form of the goods and services
which a producing economy must de-
liver.
I have recently completed a paper
entitled How We Can Prevent De-
pressions," which sets forth this pro-
posal in more detail. A small number
r,fs Nr&fn MI 7
would like to circulate for review and
comment among interested readers Of
this letter. JOHN H. KUCK.
Six Tests on Greece
To the Editor OF The Star:
As the year 1s47 gets under way, q
question mark hangs over the heroic
embattled land of Greece.
To the stalwart Balkan kingdom,
cradle of democracy, the next 365 days
provide bold new challenge which will
be met with traditional gallantry and
courage, while to the rest Of the world
the IL months ahead constitute an op-
portunity to bring justice to Greece
and salve the conscience OF mankind,
wounded by the injustice done to the
Hellenes.
Diplomatic observers in Washington,
the United Nations headquarters, and
throughout the world, see six testing
grounds wherein the trust Of the wes-
tern Allies can be fulfilled for Greece
in 1s47.
/. Assurance of the inviolability OF
Greeces frontier from (a) piratical
raids by Communist-sponsored brigands
and (b) from the secret shipment OF
arms and ammunition to outlaw bands
within Greece itself. Some hope Is
seen for the restoration of the integrity
of Greece's frontiers in the appoint
ment by Secretary Byrnes of Mark Eth
ridge, publisher of the Louisville Cour-
ier Journal, as American representative
on the United Nations commission to
investigate the Greek border difficulties.
This investigation epitomizes the high
standards established by the Security
Council in the effort to live up to the
hopes of the worlds citizens for perma-
nent peace.
2. Rectification of Greece'S border
frontiers through cession of areas vital
to Greek security In Albania and Bull
garia. Observers recall that Greek
demands for these areas are as strong
gs they have always been, in spite of
temporary set backs suffered at the
Paris Peace Conference.
3. Extension of indispensable finan-
cial help to Impoverished Greece
through a $1,000 100000 American loan.
Such a loan would prove vital II the
Republicans, who have just taken over
the reins of Congress, expect to fulfill
their objective OF establishing strong
Balkan bulwark in Greece against the
onward march of Asiatic Bolsheviks.
4. Continuation and extension OF food,
clothing, and other relief shipments to
hunger-racked, barefoot, homeless chill
dren and adults of Greece.
S. Raising of the reparations figures
to the levels originally demanded by
Greece from her craven despoilers-Ger-
many, Bulgaria, and Italy. This in
cludes not only giving Greece vital
money exchange, but also Axis machin-
cry and other capital equipment to-
gether with shipping, in order to help
restore the badly shattered Greek mer-
chant marine to its pre-eminent place
in the shipping fleets of the world.
g. Increasing of the pitifully made
quate Greek quota Of immigrants into
the United States by incorporation into
the present. quota of the vast unused
quotas of other nations, particularly
Germany and England. Accomplish