Madison County Democrat. (London, Ohio) 19??-1958, 1950-08-29

Weight Ou uIlllOIIIl UdSlS ID
bound to intolerable hardships on
some.
It seemed to me that the only
possible theoretical way to pay
for all-out war by taxation would
be by rationing income and tax
ing away everything over the as
signed amount Mr.. President, you
can imagine what tremendous ad-
-ministrative and political diff
ficulties that would involve, if in
fact, it did not infringe the Con-
stitution of the United States.
But this is not true of Fed
eral expenditure of fifty to fifty
five billion dollars. This can be
paid for out of taxes. Those taxes
would be very heavy. They would
cut somewhat all civilian stand
ards of living. They would inter-
fere with the. development of
civilian production and improved
methods. But it can be done, and
it is the only way to. prevent in
flation by reaching its principal
cause. It has been repeatedly
proved by experience that it is
impossible to borrow vast sums
of money and then hope by the
imposition of controls to prevent
the inevitable inflationary eff
fects, Sooner or later the dixie
must break. If we want to stop
initiation, we have to stop it at
the source. If we can pay as we
60 and restrain the increase of
private credit, then / see no rea-
son for any overall price, wage,
or ALLEGATION controls. I see no
reason to look forward for 10
years to a dictatorial control by
Government of every phase of
agriculture, industry, and COM
merce.
1t has been suggested that un-
der this proposal, the entire Bran
nan plan could be put into effect,
because, under the ALLEGATION of
power, the farmer could be told
exactly what he could plant and
what he could not plant. On page
the President is given power to
make provisions for purchases of
metals, minerals, and other raw
materials, which might be any
farm products for Government use
or for resale SO the Government
could buy and sell to an unlimited
extent, take loss, or buy high
and sell cheap, and, of course,
stand the difference, which would
amount to subsidy on agricul-
tural products and on food.
Furthermore, the bill contains
power to establish any kind of
corporation to buy and sell, and
whatever powers are necessary to
carry out the Brannan plan or
any other plan for the control of
agriculture or industry. 1t seems
to me that it is almost unlimited.
Third. The power to requisition
any property, plant, or other fac
ility in the United States, any
plant anywhere, or any property
the President chooses to requis-
ition.
Fourth. The right to guarantee
any loan or to make any loan to
any corporation. That seems to me
to be an unlimited power of lend
ing. We have seen the magnifi-
cent results of the RFC lending
in three or four very notable
cases, and it certainly seems
questionable whether we should
loan money to any corporation
which the President would like
to assist to produce some product
desired by the Army.
Fifth. The right to set up Gov
ernment corporations to go into
business the Government wants
to go into, up to a total of $1,000
100000.
Mr.. President, / cannot quite
sec why, SO far as additional
equipment is concerned, whatever
it may be, the American indust-
rial plant is not perfectly COM
petent to make the things that
are needed. It seems to me that
if the Government wants to go
into the business of making things,
it should specify those things. We
recently passed a bill providing
that the Government could raise
hemp in Central America. If
there is any special thing that
only the Government can do,
have no great objection to author
izing it to do it, but the general
power to go into any business it
wants to go into seems to me to
be wholly unjustified.
Sixth. The control of real-estate
credit. The chief difficulty with
that is that it is rather difficult
to pick out real-estate credit from
other credit. think we can sat
isfactorily control real-estate
credit by the general control of
the banks. The Federal Reserve
Board has not taken any steps,
SO far as I know, to try to re-
strict the initiation which started
before the Korean war, and GER
tainly there has been no effort
to restrict the overall amount of
bank loans. Bank loans have in