The journal. (Caldwell, Ohio) 1934-1961, 1958-09-18

congress ana Small BUSINESS
The term small business" is
vague when efforts are made to
define it precisely. Nevertheless,
concise Federal definitions which
are often complicated and con-
fusing do exist. Over the years,
the Congress has written legis-
lation intended to strengthen the
small businesses of America
which are recognized as the basis
of the free enterprise system. 1t
opportunity for these businesses
to grow and expand is cut off,
the road to monopolistic domina-
ton would lie ahead. Since the
sad experience of Western Eur
ope should be good teacher, we
can see that the antedote for
monopoly in a democracy is
socialism. Neither alternative
holds any attraction for most
Americans-hence, the preoc-
cupation of the Congress with
small business.
Sometimes, the Congress pro-
poses programs which are ques-
tionable in value and principle.
This past year was no exception
as number of small business
measures were considered by the
Banking and Currency Commit
tee of the House. It is this COM
mittee, Of which / am a member,
which has jurisdiction of legis-
lation of this type. However,
other bills coming from this COM
mittee and the taXation-Writing
Ways and Means Committee did
take some healthy forward steps.
The first Of these bills would
make permanent the Small Busi-
ness Administration, the indie
pendent Federal agency estab-
lished in 1858 to serve as spokes-
man for small business in Wash
ington. This agency has provided
the most genuine consistent effort
to help small business although
the big agencies such as the De-
partment of Commerce and the
Department of Defense have
maintained $50 called" assistance
programs for years which have
been hit and miss in their effec-
tiveness. Without slick public re-
lations stunts, the SBA has en-
deavored to assist smaller enter
| prises and, despite many handi-
caps and weaknesses, the agency
has built an enviable record.
Tax Break
The second piece of small busi-
ness legislation is of even greater
Immediate significance. 1t was
the tax bill which, for the first
time, recognizes what the burden
of Federal taxation has done tC
incentive in the small business
field. Similar in several particu-
lars to the small business tax re-
| duction bill which | introduced
the new legislation means about
| $3.50 million in tax relief in the
form of depreciation allowances
| intended to stimulate the expan-
sion and growth of small com
| panies.
The tax bill also increases the
permissible "rainy day" allow
ances so that more reserves car
be built up to help small firms
weather economic bad times. 1
went further in making invest
| ment in small business ventures
more attractive and Offered
greater protection against losse!
suffered by the investors. In ad
dition, the bill changed the pre-
vious tax laws by permitting the
installment payment of estate
taxeS-a tax which has often dis
couraged the continuation o
| family businesses at the deatl
of the head of the firm.
These are positive steps, il
that they recognize the need fo
tax relief as the basic cure fo,
the small business problem to
| day. Future Congresses mus
continue efforts to make the Ia,
burden more equitable as back
ground for any other forward
step it may take in small busi
ness legislation.
Korean Veterans
A number of instances hav
been brought to my attention
where veterans of the Koreal
conflict have lost their educa
tional training benefits under tn
G.I. Bill of Rights because thei
education was interrupted 70
twelve months or less after tn
CT. bill cutoff dates have pass
ed. The Veterans Administration
| think, wisely revised its regula
tions last week to restore tn
rights for many of these veterans
In the cases of Southeastern
Ohio veterans who had lost thei
benefits, the principal reaso
came from financial problems i
their families which require
them to leave school to find wor
temporarily.
The Veterans Administration
action will restore educations
rights to a large number of tn
one million Korean veterans VIII
have already dropped out of G.
training programs. Men who be
l EaIya thnv NAV n,la1ifU shnll1