The Republican. [volume] (Oakland, Md.) 1877-current, 1962-04-26

The technique is irresistible, of
course The steel company had to
surrender had to call off its price
increase. There was iubilation at
the White House. The President
had won victory He had proved
tiat political power, ruthlessly
used, could smash any private citi-
zen on" company who got in its
way and those who hate private
enterprise and love Big Govern
ment were made happy.
But before we join the unrc-
strained dancing in the streets, let
us have SOLDERING thought about
what this may mean for freedom
and for the legal rights of citi-
zenS. Let us pause to reflect that
nothing like this has happened be-
fore-the launching of govern
ment attack against particular
industry because il refused to fol-
low course of action dictated not
by law but by the whims of eco
nOmic theorists.
The steel company tried to justify
its attempt to raise prices by call
ing attention to increasing produc-
ton costs. including four wage in
creases since its last price increase
four years ago But in this piece
I'm not trying to justify the price
increase. That's beside the point.
1t is conceivable that one could
approve denunciation of a price
increase and at the same time re-
fuse to cOuntenance the use OF
punitive force of the Government
with its powerful far-flung Justice
Department to coerce anybody who
was making an economic decision
when there was no evidence that
there had been violation of law
Here, | believe, is threat to the
foundations of our institutions.
Let me add right here that,
from an economic standpoint, the
consumers interest and that of the
nation lie with the healthy func-
tioning of free economy.
The question remains with us:
Is the price of steel hereafter to
be determined by bargaining in
the market place between makers
and buyers. in the traditional free
enterprise way. or is it to be de-
cided and enforced by the Gov
eminent?
A Humdinger of Depression
Could Come-In the late l92O's,
the total tax bite-Federal, State
and local-was about 15fo of the
national income. In the 1940'S, it
had gone up to 27ee. Now it's
$50. Income taxes take big
chunk, but with people of moder-
ate means it's the hidden taxes
that take the far greater amount.
There are Isl taxes on a loaf of
bread. 1t had been estimated that,
if it weren't for the long chain of
taxes and overlapping taxes, you
could buy gasoline for Pc a gal
Ion. The manufacturer, the jobber,
the transporter, the retailer
everybody-passes the tax along to
the consumer, and SO, it's the con-
sumner who pays all the taxes in
the end.
Total taxes this year will be
$4,000 100000 MORE than last
year. There's a limit to how high
taxes can go without bringing on
collapse. The increasing drain on
your income, your profits and the
economy as a whole, could bring
on depression which would make
the Great Depression of the 1905
look like a picnic The govern
ment's taking an inordinately high
amount out of each income dollar,
openly and through hidden taxes,
has three pernicious effects on our
economy: % 1t discourageS indi-
vidualS from spending; (2) 1t pen
allies successful businesses; and
80 1t prevents job-making invest
ment
The cure" is not found in the
Presidents proposed tax reform"
bill. The proposed cure" would be
even worse than the disease"
The one obvious step which we
might take in the right direction
would be to stay any further tax
increase by blocking additional
government spending programs.
What Others Think of Our For
eign Policy-A British Journalist,
addressing large West Berlin au-
dience. drew loud and prolonged