Evening star., 1949-06-26

SaAA3FN~ Ar% %aek%AzBkf kAss@$sAN@%s%&
posvs before eGnaAskkas CO aaFee
Fw<aesal mcale expenditures he a
especially concerned Aa~rsk t1ys
threat es fourth ruasaa ~sxs tn
esxAs~s thai wcaaa nFwswnl tie
tall ef prices ttsss are nc~ ke@r~
sng many people egs es tsas
market
Mr. Eceacs ilslgka uAas szas thing
that would help as pFexat s<szal1
be 10 srsrgWAse tAs pTeNsas naIai-
mum waEe, s& klgwAdy rcxuzn.
nended BY . congressional group,
f'n2. tas aays aNssaia provide an
smpoStAa. staaaisssas easAsnss fcF
Gfsagg Anlsra WORKERS In case es
ce~p recession
Although Nj Eesies Lac s~3-
rrtAry snyder apald liar sa sse
The budget balanced In tlss nasal
year ending june 70 1919. hs ao<s
not favor an IIaercase la individual
income tasrs Ne wants n tAx on
retained corporation lneaans. SAY
ms that corporations PAID oal -
dissdeads only 81 pef cent @. their
is&s pfofts. a. compared with 70
per cent In 1929 and 30 per cent
during the war sears
McCabe No pe.simist
When the time eosnes~-and u
might be next yeaF~~Mr Eerass
would increase The velocity nf
money by increasing purchasing
at the lower income levels. This.
he says. could be aoas by falsssag
the personal income Tan exenp-
tons from The present $500 10
$3.50, and by taking OF The Ped
eral excise taxea, which ara really
sales taAea. OH Rooda ased hy
wage groups. Both proposals.
would decrease tax reeripss lie
would meet thia situation by ths
tar on retained pToiits. change
in the depletion deductions en-
ioyed BY oil and mining companies
and by greatly increasing ths
number Of internal revenue agents
who check up on large Taxpayers
for evaaions
Chairman Mccabe thinks husi-
ness men have 10 reisarn the sst
Of competitive merchandising and
saiesmanshlp and his visw 10
heartily agreed 10 be leading eusa-
neakmen who can gise posatsss en-
auapics of hoe mndeFnised pred
ucts. better paekassnx and ax-
sressiye kalessnansiiip have tn
creased demand from the paaf-
chasing public. Reoentiy In ~.
! Louis, the Reserve Board chair
man said that whether o eumu-
iative downward spsrA viii occur
is impossible TO foretsll at this
point" but he added that present
Developments did not warrant .
pe&ximistic vt~w.
Mr.. Mecabe believes that the
heart OF the resdtastsnent proe-
ess" Ia In flexible adaptation ~
merchandising programs Of
/ prices. marketing polseiss and
quality"
AFl's Recommendation
| Although many businessmen. IN
their public statements. insist that
industry eAnnoi afford 10 cut
prices or increase wages. s~ssrai
top level spokesmsn visiting
Washington have acknowledged
that small ~Ase increases or
fringe" benefits could be granted
by some corporations One af ths
highest ranking Government eean-
omists. who has . generally -oon-
servative" BACKGROUND. saya
The important thing h that -
do not have any side -acaie strikes
that would reduce purchasing
power. We have the machinery
for collective bargaining and both
MANAGEMENT and labor have
learned how 10 uss H. Each has
learned many problems Of The
other. II both SIDES xiii be- mod.
crate. understanding and fsasos-
able they can work cut mutually
satisfactory arransemensa.
The AFL this week. Tn -
Monthly Survey. Indicated q mod.
crate sppToach:
Downward pfins adjustments.
now definitely under wsp as
wholesale leyels. have changed ths
business picture basseaily since
January. lsss The employers
economic soyrtde.' when uns~-
strained pssce increases brought
high profits. Ia over. coxnp~sistna
In bach prices can no longer bs
raised tndiscrimlnateiy 70 cover
higher costs. Business executives
show new interests ln cutting en-
penaes. Production pr man
hour 10 rising sharply These are
all healthy Developments wfaseh
can bgins business to IT, normal
postwar balance,
THE Federation recognizes. hos
ever. that q period ns falling
prices brings certain dangers Ae~
ccsnpmnying dNcatnes in pFu~asze~
fscn. employment ard essyasss pps~
Or could carry 'dsssn0Afson' INTO
q business recession. weak raas-
panies. with high costa md es~
efinshg sales ircosn< may b. fnre~d
into bankruptcy. fssus inerssxanw
unempacyment. sitsacnsh stronx
|companaes aFe well tssttssss<<s sy
profit margins.
Against Inierferenes
~Poaicseg foiio~ed ny snauszs.
manaxesn<ns ard Government IN
this period ere ~ lnpors&ns We
emphasam these points 90 VITA:
II. WAGES must nzoss steadily
upwar this yesF % fessnse ss6 ~
eTessw consumer es1ysrag
-. wage increases ssse@ssa nsw
be hAAe6 On pexa oF fstssss ass
ersaaes In productivity 10 psxvsnt
xn<tu~ rfs~s in eessss eesnpaAy
earning powxr sssosal6 hs sssasaa.
erred.
-. Action fa.s w04s1d st&fs a#ss
fnsistsan Axssn sssssa be asaseee ~