Evening Star Newspaper, February 19, 1940, Page 5

Excerpts From Frank's Program Committee Reportto 6. 0.P. Plan for ‘a Dynamic America’ Outlined For Platform Makers (Continued From Page A-4) undue financial requirements, on the principle that neither organized labor nor organized industry should be able to impose restraints upon freedom of employment which Gov- ernment itself is forbidden by the Constitution to impose. Political Regulation Of Wages and Hours. Except in situations where mini- ‘mum wage and maximum hour regulation is necessary to portect groups of workers not in position to protect themselves through collec- tive bargaining, wages and hours should be determined by collective ~bargaining between freely chosen representatives of labor and man- agement. Few will question the appropriate- ness of the Federal Government's providing defense for the defenseless or of its setting limitations upon “sweating” which injures the health of workers. But there is no satis- factory evidence that the political regulation of wages and hourc beyond this point increase the real income of workers or raises the gen- eral level of employment. It may, indeed, do the precise opposite. Farmers’ Market Must Be Expanded. The central drive of the farm pro- grarh of the present administration has been to improve farm prices by reducing crop production. Whatever the expenditures involved in this program have meant in the way of cash benefits to individual farmers, | one thing is clear, and that is that ‘all the expenditure and all the pol- icies behind the expenditure have not brought a solution to the farm- er’s price problem. ‘The major attack on the farm problem must be a broadly con- .ceived drive to expand the farmer’s “market—domestic and foreign. Save for an abnormal demand the Eu- ropean war might create, the out- Jook for any marked expansion of farm exports in the near future is none too bright. Selective Protection To Threatened Commodities. If we are to preserve, to say noth- ing of expanding, the American farmer’s home market, thoroughly adequate protection must be given to American farm commodities against such foreign products as ‘would, if admitted to our markets, supplant them. Concurrently with this provision of selective protection to threatened commodities, every posgibility of ex- panding our farm expgrts through treaties which produce genuine reci- procity benefits should be fully ex- plored. Ably organized and ably led -farmer -owned and farmer - con- trolled co-operatives can benefit both producer and consumer of farm products by facilitating the sale of farm products at fair prices from which unnecessary inf ediate sales costs have -been el ted. Constantly increasing transporta- dion costs from interior to seaboard, from producer to consumer, have reduced the amount the farmer re- ceives from his products and have acted as a barrier to the free move- ment of his surpluses both for ex- port and for domestic consumption. A rational readjustment of these transportation rates will operate to widen the farmer’s market. Orderly Marketing Of Farm Produce. A rational farm program will * * * provide, under intelligent safeguards, crop loans that will make possible an orderly marketing of qur farm output so that, in a year of unusually large output and low prices, it will not be necessary to flood the market with surpluses and thus drive prices still lower, but will make possible . %* ) THE EVENING STAR, WASHINGTON, D. C, MONDAY, FEBRUARY .19, 1940, G.O.P.’s Suggested Program Republican Program Group Puts Peace and Defense at Top of List By the Allo;;lhd Press. summary of 11 m]ur principles suggested by the Rapubucln Program 1. The United States shou!d 2. Defense forces should be Western Hemisphere. keep out of war. strengthened s0 as to protect the 3. Trade agreements should be subject to approval by Congress. 4. The National Labor Relations Act should be amended and the Labor Board overhauled. 5. The farm program should be aimed at assuring the farmer prices so related to those he pays that the interchange of goods between farm and city will be increased. 6. Government regulation of business should be “protective,” not “restrictive.” 7. Government expenditures should be cut 20 per cent. 8. The higher surtax rates on individuals should be reduced; cer- tain business levies should be repealed; Government and State bond issues should be taxed. 9. Emergency presidential monetary powers should be repealed. 10. Adequate relief should be provided for all in need, but the administration entrusted to local governments. 11. Social security legislation should be studied with a view to improvement and expansion. the holding over of such surpluses to a time of lesser output and higher prices. Such loans should not, of course, be deliberately made at a level so high that they make the Government, in effect, the buyer of the crop carry-over, and thus stimulate the piling up of stored sur- pluses that will stand as a threat to future farm prices. Acreage control is an undepend- able means of production control. * * * A rational farm program will not include acreage control as a permanent policy and will coun- tenance its continuance only until more fundamental policies begin to bring the problem of farm surpluses under manageable control. Free Enterprise System Should Be Preserved. The relationship between Gov- ernment and business has too often been oversimplified by both politi- cal leadership and business leader- ship. Political leadership has oversim- plified this relationship when it has assumed, as at times the New Deal leadership has seemed to assume, that business is essentially an anti- social process, that the more suc- cessful it is the more sinister it must be and that the primary relation of Government to business is that of a policeman shadowing a sus- picious character. Business leader- ship as oversimplified this relation- ship when it has assumed, as at times its less enlightened repre- sentatives have seemed to assume, that business is a private hunting preserve, that any suggestion of so- cial concern with business policy or any degree of social control of busi- ness practices is an impertinent in- trusion. * * * The choice today is between a system of free enterprise and a polit- ically planned and politically dom- inated economy. * * * Government intervention in bust- ness should be a limited interven- tion, confined, under normal cir- cumstances, to the creation and maintenance of a socially protective framework of regulation within which our economy of free private enterprise can most effectively oper- ate and be most surely preserved. In short, the purpose of Government intervention in business should be to make the American economy of free private senterprise work, -not to re- phce}% with something else. Boundaries of Regulation Should Be Clearly Defined. Two things are essential: (1) The boundaries and patterns of Gov- ernment regulation should be clearly defined, for certainty is impossible to the degree that regulation is left to the arbitrary exercise of delegated power, and (2) the regulatory agen- cies should be so reorganized that the jurisdiction and power of every agency is readily ascertainable by the average citizen. ‘We have long accepted the fact that, within our system of free en- terprise, natural monopolies must be regulated as to prices or rates by Government. We also accept the fact that various public services such as electric, gas and water util- ities may be owned and operated by municipal governments, and it is * established that the Federal Gov- ernment may, in connection with flood control and the exercise of other Federal authority, produce and sell electric power. But we do not accept as being in the public interest vast outlays of public funds to pro- duce power in competition with and in disregard of existing useful pri- vate facilities. Deficit and Debt Record Causes Concern. The fecord of deficits and debt causes grave concern, involving as it does a clear threat to our cur- rency and credit. The foundation of sound public finance is a budget balanced an- nually from the proceeds of taxa- tion and other revenues without ‘tborrowing, but seven years of reck- less spending by the New Deal and expenditures estimated at $9,099.- 253,641 for the fiscal year 1940 has made it impossible for any admin- istration immediately to balance ex- penditures with current revenues. Any effort to ‘oduce by new taxes or incr rates revenues to meet the current level of ex- penditures would probably so de- press the current relatively low na- tional income that it is doubtful whether increased revenues would actually be achieved. In the present situation a bal- anced budget must be sought largely through such reduction of expendi- tures as can be accomplished with- out impairing essential services or depriving the unemployed of ade- quate relief and through policies in every field of Government activity which stimulates a healthy expan- sion of private enterprise. The present administration in seven years has admittedly increased expenditures by more than 138 per cent. It should not be too difficult to accomplish a 20 per cent reduc- tion from the present level and it is reasonable to expect that with such a reduction and a substantial increase in the mational income Federal expenditures and revenues can be brought into balance during 1942. . One of the worst features that has grown up in our tax system is the extraordinary number of excise or sales taxes which totally disre- gard the principle of distributing tax burdens in accordance with the ability to pay. These taxes are a direct burden upon consumption and fall heavily upon those lust able to pay, = Review of Entire Field ; Of Taxes Is Urged. A general plan of tax revision and co-ordination should be pre- pared on the basis of a systematic review of the entire fleld of taxa- tion—local, State and Federal—for such purposes as: (1) to determine the most desirable fields of taxation for the various units of Governmeht, (2) to devise effective safeguards RUG Beanty Our Duty €L8aANED AND $TO Mr.Pyle na.2257 SANITARY CARPET & RUG-CLEANING €O. 106 INDIANA AVE. PAY LESS FOR'.Y UR YOU can finance your purchase of an automobile at the Morris Plan Bar.k at a lower cost. Before you buy, compare our *“total cost” with the “total cost” quoted you by others and you will find at our Bank a substantial saving over almost any other financing plan. Of course, only your signature is necessary, and there is no delay. “INQUIRE BEFORE YOU BUY”. Morris Plan Bank of Waubington THE BANK FOR THE INDIVIDUAL Now Serving Accounts of Individuals 14¢th & G STREETS, N. W. 40,000 Member Federal Deposit Insurance Corporation ¥ CHECKING ¥ SAVINGS ¥ LOANS ’ ¥ SATE DEPOSIT BOXES ¥ [Z A against duplication of taxation, rexpecting the producive snd e e ve and table llmldt:“n( taxation lnfl @ to provide respecting the most | the economical methods for their col- Ill-considered tax measures, such ;: the un‘d“hctkrluwwd pro.l::; l:n. ve been qt adopted ter abandoned. * This tax, which would still be in_force except for Republican demand for its repeal, discouraged both the accumulation of needed reserves and the accumu- lation of capital required for expan- sion of plant. Moreover, this tax was particularly burdensome to small and new corporate enterprises, Social security taxes have imposed 8 fixed charge on all enterprise and & heavy direct tax on employ- ment. * * * Corporate income taxes have been raised from 13% per cent under the 1932 act to 18 per cent in 1939. The merit of this tax is its productivity and relative cost of administration. But it should not be forgotten that it has little relation to ability to pay as its burden falls as heavily on the stockholder whose annual income is s0 small that it is exempt from the individual income tax, as it does on the stockholder with large in- come. * * * Surtax rates on individual incomes have been raised so that in the United States they reach a higher maximum than in the war-torn countries of Europe. ' The fact that the highest Federal rate imposed is 79 per cent does not directly con- cern most of us. But the effect of surtax rates in choking off the in- vestment of savings in new risk- bearing enterprises is a matter of serious consequence to every Amer- jcan. *** We do not advocate new Federal taxes or increased income tax rates at this time. But if reductions in expenditures are not made promptly effective and there should fail to be & substantial increase in the na- tional income, then the situation should be faced courageously and additional taxes levied. Such ad- ditional taxes can probably be ob- tained, without retarding recovery. only by reductions in income tax exemptions and increases in rates applicable to incomes in the middle brackets. In so far as new revenue is sought through increased rates :le:e brackets must be looked to rst. Relief Must Be Provided As Long as Need Exists. Relief must be provided as long as the need for it exists. It must be adequate in volume, administered with scrupulous regard for the self- respect of those who must resort to it, and effectively divorced from par- tisan politics. But, wastefully ad- ministered and exploited for political purpose, relief policy can become one of the major obstacles to that full recovery upon which, as just stated, the successful maintenance of a sound and adequate social program depends. This committee believes ® * ¢ that a realistic relief policy will be rooted in three considerations: (1) Relief to the suffering, the needy —_— R T “Creaky Joints Make Me Feel So Helpless” Don’t ignore this symptom. It may sienal Arthritis creeping slowly into your join Physicians end nltllrll. alkaline yater that ent ) o Deutalise pain-caus, MOUNFATN VALLEY MINEI-!"AL WATER From HOT SPRINGS, ARK. 1405 K St. N.W. & and the unemployed as long as t fair e o Tty poldhle Q wages as soon as the \nempioped %5 they. Wi be 0 equipped to step promptly back into u'oducvocmplaym 83 800D as full recovery is realized. Mwmennreuotnlhlrundl and the mechanism f ing them, the cnm.mmea bellanl that four fundamental principles should control. national life is impossible, the larg- - est feasible proportion of relief costs should be borne by States and lo- calities, with State and local funds supplemented by grants in aid from the Federal Government, in the light of demonstrated necessity and within & regularized formula au- thorized by the Congress. Second, the administration of all relief should be intrusted to State and local governments. * ¢ ¢ Third, a national commission, bi- partisan in personnel and removed from all direct relation to party politics, might well be created to devise and enforce such conditions prerequisite to grants in aid from the Federal Government as would insure non-partisan and efficient administration of relief funds. Fourth, the conditions attending grants in aid from the Federal Gov- ernment, while leaving to State and local governments full freedom of choice as to methods of relief and their application to individual cases, should require that the State and local governments administer the relief funds, to which Federal and State and local contributions have been made, through bipartisan agencles. Only ‘'so can relief be lifted above the suspicion of parti- san manipulation. Connally Recovering Senator Connally of Texas is re- covering rapidly at Walter Reed Hospital, where he was taken after collapsing at a banquet Priday night. The Senator was sitting up yesterday, his office reported, but will remain at the hospital a few days Jonger. Electric lines running out of Syd- ney, Australia, have just abandoned first and second class for passengers, £ BREWOOD PRINTING is outstanding in typography and good taste at no added cost. Use it for your LETTERHEADS ANNOUNCEMENTS OFFICE FORMS ete. Mayp we discuss your next printing problem? No obli- gation. Call DIstrict 4868. ‘BRe®®D Eny‘r‘é’b. and Fine Printets 1217 G Street x| 30-Rule Code of Ethics For Auto Industry Proposed by F.T. C. Prohibitions to Be Offered To Industry at Public Hearing Here in March By the Associated Press. Setting back speedometers of used cars and exaggerating the mileage an automobile will travel on & gal- lon of gas would be outlawed under & code of ethics proposed for the automobile industry and made pub- lic yesterday by the Federal Trade Commission. The wmmmion emphasized that the 30 suggested rules had not been approved, but would be submitted for discussion to industry represent- ;&lvu at a public hearing here March The industry itself, the commis- sion said, asked for the rules, which are designed to protect the purchas- ing public and eliminate unfair methods of competition. The proposed rules designate as an unfair trade practice anything which might mislead the buying public with respect to “the operation, performance, use, fuel or ofl con- sumption, mileage, age, size, mate- rial, content, origiry, production, year, model, type, price, grade, quality, quantity, manufacture, sale or dis- tribution of any motor vehicle. Other rules would prohibit: De- ceptive description of vehicles offered for sale, misleading illustra- tions in advertisements, misrepre- sentation of prices and terms; the practice known as “packing” the cash delivered price or finance charges, under which fictitiously in- flated amounts are deceptively in- cluded in the price; deceptive con- cealments in bills of sale; failure or delay in filling guarantees or prom- ises, and offering used or driven vehicles for sale as new. FORDS ENGINE HEADS WELDED WELDIT, INC. 516 1st St. NW. 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