Indianapolis Times, Indianapolis, Marion County, 15 January 1947 — Page 9

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M-G-XEVEALS TH CRETS OF AN

JVE AFFAIR}

RODUCTION MARSHALL

HOMPSON

IN CHAPIN AM BROWN MELONEY

DWIN H. KNOPF

EXTRA | MGM. COLOR TRAVEL TALK

PETE simi |

NEI

m————T

U.S. Public Debt, ’ Its Many Problems

And Its Sol

utions

What Is I, Why Is It and What to Do About It Will Be Argued at Length by Congress

By PAUL

Times Special Writer

R. LEACH

>on

WASHINGTON, Jan. 16.~The U. 8. government has a public debt

of more than a quarter 6f a trillion What are we going to do about

how, and why? .

Those questions dre going to be

GOP Supports Excise Extension

Hoosier to Offer Bill in House

WASHINGTON, Jan. 16 (U. P.) ~~ Prsident Truman was assured of & 500 batting average today on’ his tax recommendations to the new

congress, Despite the President's opposition, Republican tax leaders stood firm on cutting individual income taxes 20 per cent. i ” But they agreed to go along with Mr. Truman in continuing high excise taxes on furs, jewelry, liquor and other luxury items. Excise increases have been In effect since 1943. If they were to end June 30 as scheduled it would cost the government about $1,500,000,000 a year in tax revenue. The President told congress this money is needed to help retire the-public debt. Program Hasn't Changed Chairman Harold Knutson (R. Minn), of the house ways and means committee, gave the goahead for quick action on an excise

extension bill but he emphasized |

that his program to reduce income taxes “hasn't been changed a bit.” ONE: Senate Republicans and Democrats lined up for a test of strength on a G. O, P. request for a year's extension of the senate war investigating committee and an eight months’ extension of the small business committee. TWO: Chairman Walter G. Andrews/ (R. N. Y.), of the house armed . services committee, recommended a “gag” rule to prevent members of either the army or navy talking publicly for or against An army-navy merger. THREE: Chairman Olifferd “R. Hope (R. Kas), of the house agriculture committee, said a& higher sugar ration should bé possible soon. But he warmed housewives not to count on a proposed increase of 15 pounds. May Report Friday Regarding taxes, Rep. Robert A. Grant (R. Ind.), a ways and means committeeman, plans to introduce an excise extension bill within a few days. Mr. Knutson said that if the committee is organized by Friday—and there were indications it would be—he would convene it that day to consider Mr. Grant's bill. “We may even report the bill out Friday,” men. Mr. Grant said his bill would omit a termination -date for present excises so congress might be free to make changes as desired. Mr. Knutson said the Republican decision to support an excise extension was influenced partly by public uncertainty. He said many businessmen hag complained people were holding off buying luxury goods in the expectation that excise rates would be lowered. Mr. Knutson indicated he would seek action on his bill to cut income taxes 20 per cent as soon as congress decides -how much” to cut President Truman's new budget. Republican leaders believe Mr, Truman's $37,528,000,000 spending estimate can be cut by $3 billion to $4 billion. They believe this saving, coupled with continued high excise revenue, will be enough to permit tax and debt reduction.

Coal Exports Fall

WASHINGTON, Jan. 15 (U. P.). -December fuel exports totaled 1,647,130 gross tons—23 per cent less than expected, the solid fuels administration reported today. The export program was. curtailed by the coal strike,

MEN'S FELT HATS

CLEANED and BLOCKED

OHIO

SHOE REPAIR

45-47 WEST OHIO STREET (8 $. Nlinois (Just off Wash.)

dollars, it? What is the darned thing, any-

debatéd for many hours in congréss.

“They have a lot to do with the federal budget, whether we should

reduce taxes as the Republicans want, and how much Uncle Sam can and should spend. The problem itself is simple. What to do about it is not. «It's this way: You have a good job, and want to build a house. But you need $10,000 more than you can scrape up. You borrow $10,000 on a mort. gage at the bank, Now you're In debt for $10,000. You pay interest, gradually pay of the mortage. Finally, it's paid up. You own the house, and you stop worrying about being in debt. That's just what the government has been doing almost from its beginning; that is, up to the paying off part, The government has been spending more than it has earned, particularly since 1930. Its earnings are the taxes paid by the people. It has borrowed to make up the difference by selling -bonds to banks and insurance companies, to you and me. Adding up the unpaid borrowings makes the U. 8. public debt. It totals $260 billion. now, something like $1900 for every man,“ womsam and child in the country. It was only $1 billion in 1915. The kaiser’s war boosted it to $25500,000,000 in 1919. We'd reduced it to $16,185,000,000 by 1930, Then came the depression, and Hitler's war. The most the government ever got in taxes in one year was $46 billion in 1945. It paid out more than $100 billion that year. So the public debt was swollen in 1945 by $54 billion.

Nobody to Foreclose

But there's a difference between your mortgage and the U. 8. public debt. You owe your $10,000 to some one outside the family, the bank. The federal government owes its debt to its own people, not to an outsider, or other country, except for a few foreign investors. ‘As long as you pay interest on your mortgage you are called a good credit risk. When the principal falls due, you can usually refund the mortgage by a new Joan for a smaller amount. . If you fail to pay the inteerst and principal when due you lose your house. . That's what the government does, only there's nobody: to foreclose as long as it is paying interest. When bonds come due, the government pays them off by selling new bonds. Right now it is paying an average

debt. If a government can’t pay its interest, it's in a bad way. Despite its big debt the U. S. government is the best risk in the world. It always pays the interest. That in-

Mr. Knutson told news- |

insurance companies, to you and to me. Expect Balanced Budget { When the government spends | less than it takes in, it has a bal|anced budget, and a surplus. That {is something we have not had since 11930. We expect to have one next | year. Spending more than it takes in, borrowing the difference, is | called deficit financing. President Truman's budget message estimated that we will take in $37,700,000,000 in the 12 months be{ginning next July 1, if we leave in[come taxes right where they are land reduce luxury taxes. If we spend the $37,500,000,000 he thinks {the government must have, we can reduce our public debt by $200 million. At that rate we will be only a thousand years or so pdying off the mortgage. Should we keep high taxes in good times and have a surplus to reduce the public debt? Or should we réduce taxes and spending so that they're just even and keep oh paying $5 billion a year in interest to banks and insurance companies, and us? That's the question before ‘congress. Government and private economists agree we should have a balanced budget. There is violent disagreement on how big the public debt can safely be, and how long it should continue high. If we paid off the debt in a few years where, they argue, would all the money represented in U. S. bonds be invested for #s good interest? Let's have low taxes, they say, stop worrying about this debt. Others point out that America and Americans don’t like debt and

pay off the debt, even if it does mean high taxes for a long time, the better off we'll be.

The Chicago Daily News, Inc.

Cirele Tower Telephone:

private wire system.

MERRILL LYNCH, PIERCE, FENNER & BEANE

Underwriters and Distributors of Investment Securities Brokers in Securities and Commodities

0. J. HoLpER, MANAGER

Offices in 88 cities interconnected by our

research information avéilable.

Indianapolis 4 Market 6591

Outstanding securities

of 2 per cent interest on its whole]

terest is income to American banks, ion numbering more than 1,200,000,

never did, therefore, the faster we

Formula Now Calls for New Labor Council

Acceptance of Board Means Return to Work

By HAL O'FLAHERTY Times Foreign Correspondent LONDON, Jan, 15. — Britain's plann nomy today reached the point ultimate crisis. Either the planners must produce a4 plan satisfactory to the striking transport workers, or see all distribution of vital necessities halted. A formula has been written, It calls for setting up a national joint industrial council , composed of 10 members . representing employers and 10 representing trade unions.

Council Has Greater Power

This joint council is above, and of greater power, than the central wages board, which has delayed decision on the strikers’ demands for eight months. If the strikers can be induced to accept this new board, they will go back to work immediately. The board will then meet with instructions not only to settle the issues immediately involved, but to deal with any other claims they wish to discuss: | However, if the men refuse this new plan, Britain's transport will be paralyzed. This strike movement will spread like lightning if the planners fail to convince the transport workers that the new joint council is capable of {giving them satisfaction.

Demand Shorter Hours Fundamentally, this strike was

mahd for the shorter hours an easier working conditions already granted other union workers. Many unions, but not a majority, already have a 44-hour week and 14-day holiday, with pay, per year. Now it is plain that the national planners cannot allow one union after another to demand as good or better conditions than have been granted previous claimants. Carried to its final stages, the strongest union would secure the greatest advantages regardless of the employers’ interests. At this point national planning faces an extremely grave decision. It may be an essential next step to establish a national policy on wages. And the trade unionists would never accept an all-embracing wage policy unless the government also fixed a national policy on salaries and profits. Viewed With Anxiety Here is one stage of national planning that is viewed with real anixety. To limit wages by national decree, and simultaneously limit sal‘aries and profits, would be to stifle {initiative, reduce production and (remove the geratest of all incentives {to men who work either with their] {hands or brains.

Yet, this final stage of plannin is being considered and has bee mentioned frequently in reports of recent ‘union meetings. : Here then, is the picture of trade union development. Britain's enormous transport un-

| supposedly the largest in the world,

\caused by the transport workersde-| william P. Flynn, executive «aed

{finds within its unwieldy bulk a | relatively small group bent upon forcing an issue that may destroy trade unionism. |

Fought Action for Years

‘What would be the use.of a trade union organization, with powerful leaders, if the government adopted a national plan covering hours of work, wages, and all the conditions under which men -labor? * Trade unions have fought this line of action for years. Seemingly, no other course is open. Britain's labor government must soon evolve a plan for allotment of labor to industries suffering from a shortage of manpower. Already, it has under way a document on manpowex, which deals with wages, and may, of necessity, take up the dangerous subject of controlled salaries and profits, Once started on the road to state socialism, there is no turning. One set of agreements leads inexorably | to another, so closely intermeshed! are the elements that compose a! national economy. | Eventually, all roads in statism! lead to the government itself. Unions, in theft initial stages,

Choice Offerings Bring $23.75 and $24

Hog prices were generally 25 to 80 cents higher today st the - dianapolis stockyards with a few choice offerings selling as high as $23.75 and $24. Other livestock classes held about steady with yesterday's market. GOOD TO CHOICE HOGS (4850)

; Ji di 4-4 alk

(Generally Higher

"FLYING SPEARHEAD"—Many designers believe the fast-as-sound, tailless air liner of tomorrow will have super-thin, swept-back wings to reduce and delay deadly compression that tears convenventional planes to pieces. Tailless trans-ocean liner of the future (above) .was sketched by Geoffrey Smith, British jet propulsion authority. This plane would be flown by four gas turbine jet engines in trailing edges of wings, which have 45-degree sweep-back.

Baxter and Hughes Elected To Indiana National Board

Shareholders of the Indiana National bank elected two new directors and re-elected all other directors and officers at a meeting yesterday.

Newly elected directors are R.

Keyless Lock Co., and William A. Hughes, president of the Indiana Bell

Telephone Co..

Officers re-elected are Arthur -V. Brown, chairman of the board,

Norman Baxter, president of the

president. Russell J. Ryan,- James

M. Givens and Russell PF. Peter-|: son. who have been serving as as-|’

sistant vice presidents were made vice presidents: Other vice presidents are Clarence T. Brady, C. Merle Brockway, Ludwig G. Burck, Harry R. Fuller, Robert B. Malloch, Wilson Mothershead, -and Edward C. Wischmeier. J. Kurt Mahrdt was re-elected cashfer, . Assistant vice presidents are Byron D. Bowers, Frank W. Durgan, John W. Keller, Carl C. Koepper, Ralph D. Meyers, and Henry A. Pfarrer. The bank’s directors, in addition to the new members, are Roy E. Adams, Cornelius O. Alig, Pred G. Appel, William A. Atkins, C. Harvey

Bradley, Mr. Brown, Volney Malott|.

Brown, Fermor 8. Cannon, Brodehurst Elsey, Edgar H. Evans, Mr. Flynn, Herman C, Krannert, W. I Longsworth, John J. Madden, Josefh Irwin Miller; Mr) Mothershead, Perry E. O'Neal, Charles S. Rauh, Samuel B. Sutphin, Clyde E. Whitehill, and Mr, White.

appointed by the government with the power to sit in judgment over labor disputes. Now, the overall national joint industrial council makes its ap-

pearance with the power to supersede the central boards.

Only one step remains. The au-

thority to regulate- wages on a national scale will be taken over by. the government itself.

New bureaus, manned -by hordes

of civil servants, will eventually do

the work previously carried on by

private industries and trade unions.

Greatest Need. Britain's greatest need today, according to every authority, is production. But, production depends

on manpower, and that is limited.

It is the gerat shortage of this

country. Men must be induced to work harder and produce more. British socialists are confident that they have the answers, in a planned economy. The people will know in a limited number of years whether such planning will feed, clothe and house them better than an economy based upon free enterprise. 4

STEELCRAFT PRE-FABRICATED ALUMINUM BUILDINGS

were the agencies through which la-

ployers. Then came the central boards,

Feel Safe

and Be Safe!

rin Dealers’ financial statement shows Assets - above 5 million dollars and Policyholders’ \Surplus above 2 million Yollars.

bor bargained collectively with em- |

For Farm and Industry

Flexible . . . Fire Resisting . . . - nomical. For Storage , . . Warehouse . +.» Industrial Plants . . . Farm Build

Be + + » Btores . o Restrictions . . . No Priority . . : Prompt Delivery of Standard Units permitting any length or width of buildings at amazingly low prices. -

Steel frame, corrugated aluminum walls, knocked down ready to erect, with 10'0x11'9" doors each end.

ings . « . 0! oa Utility.

Model Width Length Height Price 3060-6 32 ft, 28 1. 12 11, $1247 3060-F 32 1, 42 #1, 121, 1817 3060-E 32 #1. 56 ft, 12 ft, 2367 3080-D 32 11, 70 ft, 12 ft, 2077 3060-0 32 ft, 84 ft, 12 f1, 3361 3060-8 32 ft, 98 ft, 12 #4, "3821

Special 18x20 Garage and BStorage Building of Armeo Galvanized Paintgrip. Bteelox With Upfolding 561 DOOE avai. vi hisniminile,a Convenient Terms—36 Months to Pay

4029 E. New York St. -

Mr. Baxter

Mr. Hughes

Local Produce

PRICES FOR PLANT DELIVERY Poultyy: Hens, 4% Ibs. and over, 3c; under, 20c; Leghorn hens, 20c; springers, 30c; cocks, 16c; No. 3 poultry, 4c less than No. 1. : Butterfpt:

No. 1, 83c; No. 2, 80 RE 5 e, 39c: ; Bo erade, 28¢.

INDIANAPOLIS CLEARING HOUSE

[email protected]

Packing Sows Good to Choice 270- 300 POUNAS .uuevvssvnee. [email protected] 300~ 330 pounds .i.eceevesess [email protected] 330- 360 pounds .eveeeseecess [email protected] 360- 40 pounds eeenansscenss [email protected] 400- 450 pounds + 16.00017.50 450- 500 pounds [email protected] Medium— 250- 350 pounds . [email protected] Slaughter Pigs Medium to Good— 90~ 120 pounds ............. 14.509 19.50 CATTLE (1500) 23.00 23.50 124% @24.00 . i 21.00 90( ho . . 134% na 1300-1500 pounds pi EE M700-1100 pound 15.00920.00 POURAS ..evsesennses 18. i 1100-1300 POUNAS .ceeveccccrsne 13.00820:59 Common 700-1100 pounds ............. [email protected] Heifers 600- 800 pounds ......... veee [email protected] 300-100 pounds ...eeveceess. 10.00023.00

G 600- 800 pounds . ) Quy

FCROOH «oonennsnarivnrnc.varaiias 14. 17.00. Medium .......... sen sesavanns [email protected] | Cutter and common ......... [email protected] CABROE © oor viaiveosensrenss [email protected]

Sa po Good Casares te tate a es sh rey 3.50 18.00 Cutter and common ........ [email protected] CALVES (225) Good and choice ... ..... Common and medium ..

Culls (76 pounds up) Feeder and Stocker

Coa 00 pounds 17.00018.00 800-1050 POURAS +0uvsvsnsees 110001800 eeessasness [email protected] renee 13081500

Clearings ....vivescinverceca.-.$ 7,458,000

” ’ - rr _—-

df | pipet

gy io—y,

—

THE NEW

1947

500-1000 pounds .....ec..... 12.50014.50 500- 900 pounds ... 10.00012.50 SHEEP (625) Lambs Closely sorted ............... > 00 Medium and good ....;...... 16.00021.00 Common ne aol at oa ravy pds Ewes (Shorn) Good and choice ...........v 6.000 17.00 Common and medium ....... 5.00 0.00

Now in Production—the 1947 Model

Marked by smart new innovations in both exterior and interior design—the 1947 Cadillac is now on display. It is the most handsome, the smoothest, finest-performing Cadillac ever built. Product of forty-four years of progressive betterment, it is the undisputed leader in all that makes a motor car a pleasure to drive and a joy to possess. As in the past, Cadillac cars for 1947 are offered in four seriea—the ‘61, *62"—and two distinguished Cadillac-Fleetwoods—the *‘60 Special” and “‘75", There are.nine body types in all—each available

. Now on Display . HOOSIER CADILLAC