The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1949-12-08
Farmers Ask For
Program Geared To
Growing Economy

Washington (LPA)-Two miles
apart views of what role the fed
eral government should play il
avoiding booms and busts wer
presented Dec. / to Sen. Pau
Douglas Congressional subcommit
tee studying the question.
A healthy, vigorous and aler
federal government looking out fol
the interests of it's citizens, will
step in whenever private bushes!
forces fail to keep the economy OF
an even keel, Washington repre-
sentative Russell Smith of tn,
Natl Farmers Union told tn,
Congressman.
Speaking for the Natl Assn oi
Manufacturers, William j. Grede
Milwaukee manufacturer, anC
Harley Lutz, Princeton professor
called for $10,000,000,000 cut ir
federal spending to balance the
budget-regardless of the conse.
. quences on the Administrations
social program.
Questioned by a skeptical Sen
Douglas Cd, ILL.,, Grede and Lutz
even called for balanced budget
in times of depression by means of
increased sales taxes. Douglas
commented that this was a pro-
posal for increasing taxes on the
things people must have to live.
He said it would curtail consump-
tion and deepen the depression.
Douglas and Lutz agreed on one
thing, however, that tariffs should
be lowered. But, prompted by NAM
officials in the background, Lutz
quickly added that in expressing
this viewpoint he was not speaking
for the NAM. Observers remarked
the NAM was thus backing down
from the only sound proposal it
had made all day.
Speaking for the Farm n s.
Union, whose economic views have
generally paralleled those of or
ganized labor, it's representative
warned that "a drastic decline in
employment and economic activity
will render almost insuperable the
question with which this subcom-
mittee is dealing"
Anticipating the MANS views
not a hard job-the Farmers
Union spokesman warned the Con-
gressmen at is not enough simply
to compare present national bud
gets with pre-war national budgets
and call for economy without re-
gard to the size of the public debt
and the carrying charges of that
debt, the expansion of national in
come that has occurred in the same
period, and the immense increase
in production upon which that ma
tional income is based"
Recognizing this, "a government
budget in the range of those of the
past several years is almost un-
avoidable." Further, "a drastic re-
duction in expenditures probably
would mean decrease in business
activity which in turn would lead
to lower collections from taxes and
reduction in revenues below the
point actually desired by Con-
gress." From here, we could effort
lessly move into "a genuine and
serious economic decline"
Congress SHOULD concern itself
more with the ALLEGATIONS made to
different types of expenditures
from present budgets, and to the
impact of taxation upon individual
incomes and upon business activity,
rather than to what we believe
would be futile attempts to return
to national budgets far below pre-
sent levels" the Farmers Union
urged. s sae
A study of the relative ability. of
states and the federal government
to regulate and tax "yery large
financial concentrations" VIII ic h |
often are nationwide was urged on
the subcommittee. Such a study |
should look into the whole field of |
federal programs of financial aid
to the states, it was added.