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

~
any information, confidential or
otherwise. / do not think I have
ever seen such broad power to
go into anyone's business and re-
quire him to bring all the evidence
which the President might de-
mand.
It is significant that some of
these powers were sought in peace
time in the Spence bill, and there
is at least a suspicion that the
present crisis is being used to Sc
cure powers long desired, but
unrelated to present necessities.
All these powers as well as
price control, wage control, and
rationing might well be part of a
general grant in case of about
war.
I have emphasized the fact that
about war means taking such a
large proportion, so percent, of
all production that j. cannot pos
Again, Mr.. President, what l de-
sire to emphasize is that what we
are facing today is something that
we have not faced before. 1t is
q special state of semiwar. 1t is
condition which calls for a great
sacrifice on the part of the people.
But it is, not as in the case of all
out war, a condition which can
be financed on pay-as-you-go
basis, a condition to which we
can adjust our economy and still
maintain as large a part as pos
sible of the freedom and the lib
erty and the progress which are
essential to a free economy.
The program which I suggest,
therefore, at this time is as fol-
lows:
First impose controls on the in
crease of private credit. During
the past year, bank loans have
increased $4,000, ,O00,O 900. Consumer
credit has increased $500, 0,000,-
900. The inflationary effect of
housing credit is hard to calculate
in figures, but it has been SUBJ
stantial. Without doubt these in
creases in credit plus the Gov
ernment deficit of more than 3d.
000,000,000 in the past year are
responsible for the increased
prices and the inflationary trend
which developed even before the
Korean war. The President has
already moved to check the Gov
ernment stimulation of housing
credit, although he seems to have
done it rather to save materials
for the war than as part of any
general move to check initiation.
favor also the granting of
power to control consumer credit,
which has become such an i'm
portant factor in modern life
Government has always controlled
credit through the banks Every
responsible government controls
and prevents the development of
excessive credit, which builds up
purchasing power without CORES
ponding production, and therefore
tends toward initiation. 1t seems to
me proper, today, to extend it to
consumer credit, in order that the
whole field may be covered. I
do not quite see the need for
checking private real-estate credit,
which is covered specially in the
bill because / believe it can be
controlled through the general
control of bank lending. / see no
reason to turn over the whole
control of credit to the President,
as proposed in the new bill. In
my opinion, it should be retain
ed in the Federal Reserve Board,
which already has full power over
bank credit.
Second. The Government should
reduce domestic expenditures. Just
as civilians generally will have
to make some sacrifice in their
plans, SO must also the Govern
ment and the communities, as
far as their own domestic expendi-
lures are concerned.
Third, Taxes must be levied to
cover all contemplated expendi-
lures, and they should be levied
at once. A week ago the Senator
from Virginia (Mr. Robertson)
proposed general increase of 10
per cent in all income taxes. That
would produce only about $3,O0O,-
100000. Merely to give an idea
of the volume of what we are
faced with here, an increase of
20 percent on all corporation and
personal incomes would only pro-
duce about 0OO,OOO,0OO year.
An increase of 25 percent would
only produce $500, 100000 year.
Of course, the increased expendi-
lures will not begin Immediately
SO it requires no more complete
calculation to determine just how
much of an increase is necessary
to balance expenditures during
the next 8 months. BY that time
Congress would be in a position to
enact a more permanent tax