Evening star., 1949-08-27
Businessmen Reject
-Priming,' Ask
Tax Cut, Sawyer Finds

and taxes SlaSneQ, secretary OF
Commerce Sawyer has reported to
President Truman.
Mr.. Sawyer passed that word on
to the White House yesterday aft
er c-isscrossing the Eastern half
of the country for a month on a
personal survey OF business and
employment conditions.
He said he found an almost
vociferous' demand for repeal OF
wartime excise taxes.
His trip had been geared in with
President Truman's program for
concentrating Federal buying and
public works activities in areas
suffering heaviest unemployment.
Labor Leaders Consulted.
After numerous conferences
with businessmen, labor leaders
and local officials, Mr.. Sawyer re-
ported:
There was no general view in
any area that the time had come
for major pump printing or spe-
cial public works activity by the
Federal Government"
He summed up:
Businessmen were overwhelm-
ingly of the view that an imme-
diate easing of the Federal tax
burden would have q stimulating
effect m h,Isiness
First would be reduction or
elimination of wartime Federal
excise taxes: second. an accelera-
ton of the depreciation allowances
in connection with Federal in
come taxes. Excise taxes are felt
by businessmen to have a depress-
ing effect on-consumer buying and
on the industries producing the
taxed items"
Reports Reinsurance.
He said he was reassured by
officials of business. labor and
Government that "our economy
can look forward to more new
growth and progress" But he
said most businessmen feel that
1.-The best measures for the Gov
eminent to take now are those
which would bring a release of
pent-up purchasing power in the
hands Of business and consumers. :"
Secretary Sawyer visited New
England. Northern New York,
Michigan and Ohio and toured
the Southeastern States. Other
Commerce Department officials
surveyed other areas in the East.
The trips were outlined by
President Truman and his assist
ant, John r. Steelman, and Mr..
Sawyer issued his report to Mr..
Steelman.
Mr.. Sawyer said:
my most significant impress
sion from these trips and discus
sions is that people generally have
an abiding faith in the soundness
of our business economy.
Better Adjusted Level"
Generally speaking, find that
businessmen considered the recent
declines in prices, sales and pro-
duction as being temporary ad-
justments which were inevitable
as our economy moved from the
inhationary postwar peaks into
q better adjusted level OF pros
perity."
The secretary made no recon-
mendations for course to be fol-
lowed to stimulate business He
said he would do that when his
survey Is complete.
He did, however, summarize the
recommendations made to him by
those with whom he conferred.
Among these suggestions were:
/. Reduction in the cost Of Gov
ernment. Businessmen pointed
out that tax charges were the only
costs which could not be con-
trolled by good management in
business.
Against Wage Increases.
2. No further round of wage In
creases. Prices should not be per-
mitted to go up and, in many
cases, they should come down.
8. Increased unemployment
compensation In duration and
amount. This was urged by labor
leaders because of the high cost
Of necessities.
4. Liberalization of deprecia-
tion allowances in connection with
income taxes, and other tax re-
lief for small businesses.
"In general" Mr.. Sawyer said,
retailers were more optimistic
than almost any other group of
businessmen. It seems to me an
excellent sign since retail sales
are, In the end. the economic
governor Of production
Effects of Over-Expansion.
."To a major degree the COM
munities which had the most
serious problems were the ones
which are now feeling the after
effects of wartime over-expan-
sion"
g'It was most forcefully brought
to my attention that being out
of work today is a wholly differ
ent matter from being out of
work in the early 30s. due to the
difference in the price of food
and other living costs.
sUnless such costs come down
or unemployment payments are
extended, the relief situation in a
number Of cities could be critical. "
Mr.. Sawyer pointed out that
"dHe out of the nine labor market
areas with more than IL per cent
unemployed are located In the
N@ England States"
Sees Signs of Improvement.
ae said, however. there are in
diE&tions of substantial improve
msnts of conditions in New Eng
la6 which has been at the tor
of&4he unemployment lists.
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