Indianapolis Times, Indianapolis, Marion County, 31 January 1950 — Page 12

PAGE 12 on SN, dy b Joga Fn Sp,

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Paralyzing Business AR-TIME excise taxes, still in effect four and a half years after the war ended, ~are depressing certain Tines of business. _ President Truman says so, and everybody else’ knows The original purpose of most of these taxes was to discourage ‘travel and businiess-as-usual, thus releasing + transportation facilities, manpower and materials for war work. , They continue to serve’ that purpose when all lines of business need every possible encouragement to produce and sell, thus providing more jobs and more government revenue from individual and corporate income taxes. They serve that purpose, as Mr. Truman says, with particular detriment to low-income groups.

. » » AND NOW, since Mr. Truman has advocated reducing many of these excise taxes, they serve that purpose more effectively than ever. For customers are putting off buying excise-taxed goods in the belief that the taxes will soon come off or come down, and that then retail prices will be lower. The effect on some lines of business has become worse than depressing. It's paralyzing. ' But Mr. Truman tied a string to his recommendation for cutting such taxes. He said that Congress must replace the revenue lost by closing tax-law loopholes “which now permit some groups fo escape their fair share of taxation.” Otherwise, no excise-tax cuts.

” ~ . . ‘ CLOSING the loopholes is a difficult, time-consuming job, which Congress apparently intends to study for several ‘months before acting. A few months of stagnation in the market for excisetaxed goods could put a lot of employers out of business and a lot of employees out of jobs. We believe that Congress should do quickly whatever it means to do about reducing or repealing excise taxes, and should firmly commit itself to offset any consequent

spending. of ~ Inferiority Complex « TE angry tears of sonfe American diplomats who are losing their military airplanes points up a fundamental defect in the American official character, as represented by the. State Department. Defense Secretary Louis Johnson is recalling the planes in the interest of economy. All our embassies abroad are furnished U. 8. government automobiles. Their personnel | can travel by commercial planes at public expense when } | on official business. Why, then, military planes? To which: the diplomats reply that they -will lose prestige unless they have planes to transport big shots in the SouNtriey lo Which they are assigued.

THIS despite ‘the fact that leading foreign ambassadors to Washington get along nicely without this expensive kind of transportation. It seems to us that American diplomats who must - depend upon this type of small favor to maintain face and prestige with foreign officials had better be brought home. We provided men, money and arms to win the war. We are feeding a large part of the world, including, no doubt, some of the dignitaries who've been getting the free airplane rides. : If these facts, and a list"of others too lengthy to mention, aren't enough to maintain American prestige, we had better give up. This fawning sense. of inferiority has been our ‘curse in the foreign field for genenations. We are eternally offering tribute, petty and otherwise, for considerations which are our obvious and automatic due. It was this mental attitude which prompted the gift of vast areas to Stalin to keep him in a war which menaced Russia far more than it ever menaced us. The same attitude induced us to give the Soviets’ three votes to our one in the United Nations.

yy to

. . . . ~ » » OUR diplomats begin by giving away free nylons and airplane rides. The same habit leds to dipping into the Treasury and handing out large chunks of mqney, and to such foolish concessions as those made at Tehran, Yalta and Potsdam. Some of these giveaway boys should be taken out of circulation while we still have our shirts. ‘ It’s time we began to realize our own strength, and the need for maintaining some degree of dignity.

A Pointless Controversy JFRENCH and German politicians are engaged in an acrimonious debate, provoked by the charge of a West German cabinet minister that Frdhce was responsible for the first World War and, through the Versailles Treaty, for preparing the way for Hitler. France, in high dudgeon, has demanded a formal re"traction of the chargé through the Allied High Commission. Hardly anything could be sillier than this, at a time when co-operation between France and Germany is essential to European survival. The Allied High Commission will be foolish if it devotes any attention to such a con-

Unless all the nations of war-devastated Europe can forget the follies of the past and devote themselves wholeheartedly to collective efforts toward a better future, they will invite their own destruction. No amount of outside aid can save Europe unless the nations of that continent join hands and work together for the ‘s@fimon good.

: (3utipad Paris Red Tape OU'VE wondered at blunders in Tent, this may help to explain some of them: A House committee found that few matters can clear ft ture a dozen divisions.

State Depart-

Tuesday, Jan. 81, 1950

loss of government revenue by cutting down government

Big ins id British Voters

Conservatives’ Platform Promises Conflicting

WASHINGTON, Jan. 31—The British Con-

" servative Party platform is deceptively full of

conflicting high-flown promises and short on , constructive details. ’ - In that, it is lke the Labor Party manifesto, and similar to party platforms in most countries including our own, Its objective is votes rater than statesmanship. “The policy of the party is to restore to our country her economic independence and to our citizens their full personal freedom and power of initiative.” ; This ringing declaration seems to be a direct challenge to the welfare state supported by the Labor government.

But not so. For the viationn goes on to pledge continuation of all the social services.

Run Things Cheaper

OF COURSE, true to the campaign technique ‘of most opposition parties everywhere, the Torles say they will run things more efficiently and more cheaply than the party now. in office. The chiéf pledge of the Labor Party in fits

election manifesto is to maintain full employ-

ment and the standard of living. The Tory Party promises the same—plus a separate home for every family and other'lures. Winston Churchill, in his denial of Labor charges that the Tories will sacrifice full employment and some of the social services, opened his campaign with this commitment on his party: “To maintain the basic standard of life and labor, below which a man or woman however old or weak shall not be allowed to fall. The food they receive, the price they have to pay for basic necessities, the homes they live In and their employment must be the first care of the state and have priority over all other peacetime requirements.”

Big Promise to Voters

AND all this the Tories promise to do, while at the same time cutting government expenditures and government controls. The voter is to get the blessed privilege of eating his cake and having it too. The state will guarantee him a job, home, necessities, but at the same time there will be full economic independence, personal freedom and individual initiative, Despite the Tories’ effort to outbid the Laborites for a bigger and better welfare state, there is one Important difference. The Tories oppose further nationalization of industry.

Labor would nationalize steel and a few

others, Here is a clear-cut issue, but one on which the voters show less interest than the welfare state. " Neither the Tories nor the Laborites can carry out their expensive pledges without American aid after the Marshall Plan ends in 1952. ‘Probably only a coalition government can cut back the popular social services and subsidies to a point where British production can pay for them. But in this bitterly partisan cam-

paign there is no spirit of coalition,

HARVEST IS RIPENED -

The harvest is ripened The Master is waiting. ; For crops to be brought from the field But the workers are scattered And time is so fleeting To gather the best of the yield.

The storehouse is ready The Master has offered A wealth for the workers untold, A crown lald with glory, A robe and a mansion Where streets have a paving of gold.

Go speed to the harvest Each moment is precious The lost need a beckoning call, For Jesus the Master May come any moment . Then work time will end for us all. .

Oh, listen dear brothers, Some loved ones are praying Your soul will come in with the yield, When those who are working Have ended their labors And the harvest is brought from the field. «Opal McGuire, 814 Broadway.

U.S. IMPORTS . . . By Marquis Childs

British Wondering?

WASHINGTON, Jan. 31-—-An event almost ignored here in this country has caused a tremendous stir in Europe. That is the failure of two British firms with the low bids to get the contract for transformers being ordered by the city of Seattle. The award, for $751,000, was given to the General Electric Co. One lower bid came from an American company for $720,000.

Two lower bids, one for $572.-

000 and one for $515,000, ada.

ence of

But with the firm insistAmerican

FOREIGN AID .

Ah | LT FAuaTE

. By Peter Edson

Korea Facing Economic Relapse

WASHINGTON, Jan. 31 — The one-vote House of Representatives ‘defeat of a Korean Marshall Plan appropriation caught the Economic Co-operation Administration right in the middle of {ts recovery program. ECA had. laid out a $120 million program for Korea (hi¥ year. Half of that sum was appropriated last year and the Senate had approved the other half. Unless the House reconsiders its killing of the second $60 million South Korea is in for an economic relapse It would be ‘wrong to give any impression that this $60 million will finish the job and make Korea self-sustaining. The prospect, says Dr. E. A. J. Johnson, former U. 8. civilian governor of South Korea and later adviser to the Korean government is that $115 million U. 8. aid will be needed in 1951, and about $55 million in 1952. There 1s a hope that the Korean economy will be able to sustain itself by 1953, though it may show a small dollar gap between its exports of rice, fish, tungsten and other metals, with the Imports of fertilizer, machinery and raw materials necessary to keep the country going,

20 Million People

THE whole ECA effort in South Korea has been directed at making this area self-sustain-ing. It's an area’ about the size of Virginia— 39,000 square miles. Only instead of having 3 million people, Korea has 20 million—three-

* fourths of them fishermen.

Rice and fish are the basic foods. In 1946, $40 million worth of foodstuffs had to be imported. This was cut down to $26 million in 1948. But last year, by dint of importing U..8. fertilizer, South Korea was able to export 100,000 tons of rice to Japan. A key recovery project now is to build

‘Korean fertilizer plants so as to make further

imports from the U. 8. unnecessary. Also

flood control and irrigation projects to bring

195,000 new acres into cultivation way. When the Japanese moved out of Korea at the end of the war, they took all the fishing boats with them. So another major recovery project has been to build up the Korean fishing

SIDE GLANCES

are under

suppliers

fleet. South Korea has 44 fish canneries, and building up the fish export business-—principally to Japan—is the objective.

‘Power From Reds BEFORE Korea was cut in two at the 38th parallel, 70 per cent of Korea's electric power came from hydro-electric plants in the northern, Russian-occupied area. The whole country was tied together in a power grid. In May, 1948, the Russians cut off power supply to South Korea. A U. 8. Navy power ship, a floating generating ¢, ‘station, has made up part of the deficiency. But the building of new hydro and coalsteam generating plants is another big ECA objective. South Korea has good coal deposits. Production was only 250,000 tons in 1946, but was raised to 1,250,000 tons last year. By 1953 it is hoped to have production up to 30 million tons a year. ECA is building 92 miles of connecting rail lines, through difficult mountain country, to connect coal mines and ‘power plants. As coal and electric power production are stepped up, South Korea's industrial production is being increased. The area has 86 rubber factories, 14 textile mills, a silk , five iron mills and a small machine tool industry. All have obsolete Japanese machinery that needs modernizing, and ECA has begun this task by contract with American firms.

Production Stepped Up

SINCE the U. 8. military government and

ECA have moved into South Korea, total industrial production has been stepped up 28 per cent in 1947, 50 per cent in 1948, 82 per cent in 1949. This record can be continued this year with American aid. Korea's President Syngman Rhee, who spent the war years in Washington working for recognition of his country’s independence, boasts that it is today the only country in Asia “which is successfully fighting off armed assaults and subversive infiltration ‘directed by the Soviet. American aid has helped in that fight. But whether or not the aid is continued, the Korean president says his people will keep on fighting.

By Galbraith

Wn a ar chet of 2 CAAT § Fi

prolonged.

‘No Apologies for Hiss’ By Barney Antrobus, Craw tordgville, Ind. The Times editorial, “Apologies -for Hiss” is dead right. Marquis Childs belongs in the same family when he tries to make a case that there is an American sentiment for Hiss. If there is then they are all disloyal. “The time that many would prefer to torget™ is well known to me, and I don’t want to forget it either. Born and reared on a hill farm, educated to work in the timber and in fields for’ a

living, I just took that “great depression” Tn yay:

stride. What of it? So far as I was concerned

there was no “distrust era.” Sovietism was never .

any answer to “the world's economic ills” to any sane American. The whole flock of intellectuals that want to crowd the boards now do not have enough American gray matter to suggest anything American. The last mother’s son of them hyphenates or worse. Ll

‘Street Plans’

By Alex M Clark, Judge of Municipal Court i

The most pressing need in Indianapolis at ' is an over-all program for rehabilitation :

“of the whole system of streets and sewers.

These projects go together and both shibuld

be considered in a joint under- _ taking not only as a public service for a growing city but for safety of the citizens. One of the most important factors in traffic safety is engineering and that's. what is needed in an over-all program for future development of the metropolitan district. Underpasses and overpasses will have to be constructed sometime to handle the in- coy creasing flow of traffic over a the congested thoroughfares. Judge Clark...» All this will cost a lot of money but Indian-, apolis will have to do some of these eventually and we might as well get started planning them. now. : ’ » ~ » What are your ideas on ways to improve Indianapolis in 1950? Send your suggestions to: “1950 editor,” The Times, 214 W. Maryland St

‘NATIONAL POLITICS . .. By Marshall McNeil

Prosperity Recipe

RALEIGH. N. C., Jan. 31—A South Carolinian who has prac-’ tically lost his southern accent has given loyal Truman Demo= crats belew the Mason-Dixon Line his 10-year recipe tor~ali-abts continuous prosperity. Stripped for the moment of its dollar details, it sounds somes} thing like a formula for substituting fried. chicken for chittGREY - The idea seems to be that if we had a chicken we could

more in 1959 thag it's costing now.

" 3 “s i 23

‘WHAT DO WE NEED IN 1950?

: #

came from British companies. The British bidders would have had to

per cent duty when the t ra nsformers were deliv. ered It is not bard to see

why this has stirred a wave ] of skepticism Mr. Hoffman in Europe over America’s intentions. Paul Hoffman, the dynamic head of the European Co-operation Administration, has been preaching the necessity for Britain and the rest of Europe to concentrate on sending imports to this country. So two British firms make an all-avt effort. They make detailed bids as called for by the municipality of Seattle. They cut costs to the bone. And what happens? An American firm that was not even the low bidder got the contract. ECA had a repre sentative look Into this and the representative reported back informally--and somewhat vaguely--that the city was justified in accepting the bid approved. , ECA has, of course, no au“thority In the matter. There is nothing that Mr, Hoffman and his allies and adherents can do except preach. Under the “buy America® law, no federal congrdct can be awarded If a single penny is to go to a foreign firm, .

THIS last has, incidentally, been a source of considerable

that the United States can produce everything needed, the answer was no. Europeans are asking: Is Seattle an example of free enter prise” Is this what competition means? Or is it, instead, the kind of cartel control that Americans rebuke us in Europe for practicing? The answers ECA has been able to make are rather lame. This comes at an, extremely embarrassing moment, for Mr.

Hoffman has gone to Paris to.

talk hard economic facts with the Europeans in ECA. It hits hardest in Britain, where a critical election campaign is on. For at least two reasons, the British press has not played up the Seattle business,

. » » ONE obvious reason is that it would tend to give aid and comfort to the British Labor Party, and the .press is pre dominantly conservative. The Laborites could jeer at such an example of competitive free enterprise. They could ask, with perhaps some embarrassment to their

‘the Conservatives proposed lo

follow. To play up the news would be to encourage the British businessman who has all along sald that the United States would not in the final show-

British debt makes it possible to unload almost anything.

THERE 15 in"thia an object

COP 18 BY Nek Seni, We. T. he 8. ore,

“She's the best dressed girl in school all right, but the oly d date

| had with her | felt like the janitor!”

correct the ditianie now being made up by direct American aid. Criticism in this country has been repeatedly directed at the British for trade agreements, such as that with Argentina, on a bi-lateral basis. . But if we are not willing to practice

: -* Barbs MODERN youth is slowing down, says a writer, Has he

read the list of speeding accidents lately? »

have white meat and gravy if we had the gravy. This was no recipe from a mere hash-house cook. Rather, it was from Leon H. Keyser« ling, acting chairman of the President's Council of Economic Advisers. He came down here to address the Southern Regional Conference of the Democratic Party. » ” . : THE conference carried out completely a premediated decision to ignore the outstanding political fact of the South: The vigorous opposition to the

Truman civil-rights program

+ by Dixjecrats and many South-

ern regulars. The conference itself acted as though the Ranking and Thurmonds didn't exist. By its silence it seemed to agree with Mr, Truman that Jimmy Byrnes is a free agent who can do as he damn pleases. But ir hotel lobbies, around tab and in press conferences, the political vacuum in which the conference met was filled in‘ with the facts of life.>

His ‘goal for the coming decade is to increase our total . annual national output by $90 billion. When this occurs, Mr. Keyserling thinks, we will be able to finance easily the Tiu- . man program.

2 = =» ; WE can do it, he says, and even cut taxes and balance the budget 10 years hence. om But here's the program given 8 southern Democrats in My, Keyserling's own words: bY) “Lumping. together. the XJ jectives of achieving a mini~ mum $4000 standard of Ii for every industrious of rime. can family, a 35 per cent gain in per capita farm income, and comprehensive and adequate programs for Bocial Security, .

education, health, résource de»

welopment, and housing qu’ urban redevelopment, the total .

. increase in annual outlays for:

all these purposes in 1959, cone trasted with 1949, would -ab=’ sorb only about three-fourths of a $90 billion gain in total . national output. This would, “leave a large balance of the to be applied toward “other! sectors of individusi“and ational,

“Ir should be stressed that the foregoing figures relate to production’

G. H. Kern, master far the fayette, said a from one of tI

“the. train and d

at 1:45 a. m, The wreck Pennsylvania a here, but all trac to be cleared tod

Grandmothe In Grandso

BEDFORD, . Btoutly insisting a 72-year-old g on trial today 1 her grandson. Mrs. Ida St charged with se der and volunta in the shooting « Roscoe Owings; County. The defense 1

“that Owings w

defense. Mrs. S shooting Owings

but said she fire

hit. It will pay yo liable Real Esta or sell real est: buyer and seller That's his busi looks out for yor

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