V.sabond Editorials

By Jack Dionne

My country 'tis of thee, Sweet land of Code-erY, Of thee I sing; Long may our land be gaY, While the Blue Eagles PlaY' Protect us NRAFrom everYthing. *t,;

Just after the Civil War in a certain small Southern town a man came into a store and paid a debt with a twenty dollar gold piece. It was a known fact that that was the only twenty dollar gold piece in, that town. In three weeks' time that twenty dollar gold piece had paid sornething like two thousand dollars' worth of debts and finally returned to the man who put it in circulation.

Wise guys in finance would have you believe that putting a lot of money into circulation wouldnlt help things a bit; it would all go right back to the banks and freeze there. Which is pure hooey t Every cotton growing district of the South can testify that the money paid the local farmers for plowed-under cotton last fall, changed hands so many times that it actually put the district to a large extent out of debt, and brought actual prosperity locally. And you can contrast that with great and pitiful stretches of territory in the Old South today that did NOT get such cotton money, where the possession of a dollar in cash marks a man as a plutocrat.

In Biblical days a prophet was "not without honor save in his own country." Nowadays a profit is practically without honor, because in the first place you seldom make one, and in the second place if you do the income tax man will take most of it away from you.***

Pity the poor advertising industry. Sky-high income taxes promote advertising. Business, knowing that above a certain point its profits will be taken, prefer to buy publicity with it, and thus build their business. So the advertising man sees profits ahead. But if he makes much the income tax will take it away from him. ***

Anyway, worry about losing their excess profits via the high-bracket income tax route is one trouble that is not going to wrinkle the brows of the lumber trade press THIS year. If they can get back to paying themselves and their help a living wage they will feel that 1934 is a howling success. Let the high-bracket boys do their own worrying. rt**

Don't fail to read Dr. Wilson Compton's article, written for "Nation's Business" for January and reprinted in full in this issue. The excellent Manager of the National Lumber Manufacturers Association and rnember of the Lumber Code Authority does the best job of picturing the effect of NRA on the lumber industry that anyone could do. It's the best job of writing I ever knew my friend Compton to turn out. I always thought if he would cut loose from about fifty per cent of his scholarly dignity and start throwing punches from any angle he could do a swell job of writing, and he HAS. Congratulations, Dr. Compton. *d(*

I am convinced that the stimulation of private enterprise is today the one great vital need of this nation. It's the only route that will ever put men back to REAL workperrnanent, productive labor. ***

This session of Congress would be an unalloyed blessing if it could develop ways and means for relaxation of credit and restoration of financial confidence. If they will intelligently approach the all-important subject of inducing investors to put their money into comrnerce and into industry, rather than scaring them deeper and deeper into their hole by "soak-the-rich" tactics, they can help get business moving into healthful rather than artificial channels, and do wonders to get men back to work-real work. ***

But if they adopt the policy of "take-it-from-those-whohave-it," naturally those who have it will keep it. And the wheels of industry and commerce-particularly of CONSTRUCTION-wiII remain idle. They will buy good old Uncle Sam's bonds with their cash; and buying Uncle Sam's bonds will never even start to solve this problem. When men feel that it is safe to loan money, to invest money, and are assured that if they make a reasonable return on that investment and on that-at present at least-business gamble they will be allowed to enjoy the fruits thereof-then, and then only will the capital goods industries revive. But if the feeling is "no use to take a chance on making money when they'll take it away from you anyway," things will drag. Prohibitive income taxes can have but one effect; they invoke the age-old law of diminishing returns-to the very vanishing point.

How utterly unwise is the effort to stifle criticism of present Governmental activities during the present session of Congress ! Navigating as we are on uncharted financial, economic, and industrial seas, forbidding intelligent criticism at this time would be tragic-might well be fatal. It would be like tearing the governor from a steam engine and letting it run loose. Whenever this nation arrives at that hour when the honest and loyal criticism of its servants is forbidden or stifled-then God help us, for in that way-and in that way only-may the reign of chaos and old night be brought about.

Rather should -" """:r;" trr.,""tigation and the criticism of everything we have been doing. Only the avowed infallibility of our administration and all of its departments would justify any other procedure. This is a Democratic, not a bureaucratic form of government, and in such times as these a "yes-ing" Congress would be an utter calamity Don't muzzle your representatives at Washington at this time. Tell them everyone to stop, look, listen, and then speak wisely and firmly. one of my friends -; ; ;" *", to washington to have some Code questions answered. He contacted a man

Lumbermen everywhere still have a distorted idea of the proper relationship between the Lumber Code Authority, and their own administrative body. From every part of the country lumbermen with problems to solve or arguments to settle "take it up direct with Washington." And that they cannot do. The Code plainly states that you must take your problems and your kicks and your claims to your administrative body for adjustment. And only when they cannot be settled there, or when you feel that you are entitled to an appeal in the matter, do you take the case to the Lumber Code Authority, furnish it with your facts and your clairns and your data and correspondence. And, the Authority will then act in the matter, but only as an appeal court between the disputants. Every case must go to the local or regional administrative body FIRST. The lumber industry code makes the industry self-governing. You must settle your problems within your own group, and only when that cannot be done must you take it higher. Don't send your problem "direct to \f,fashington." The only authority Washington has under the Code is to send it back.

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