Show WASHINGTON ni LETTER Redistribution of Incomes Looms as Definite New Deal Goal GoalBY BY S WAI CORRESPONDENT W WASHINGTON Raising fury with those whom the Treas Treas- Treasury Treasury Treasury ury labels as Tax Evaders Ex Extraordinary Ex- Ex Extraordinary Extraordinary Is just lust a step In the right direction If the right direction is la down Roosevelt s Road to Redistribution The I he President reiterates that there s a rainbow at the end othe ot of the road H He thinks his share share- wealth the wealth thee program will give live Q a decent standard of living to 40 40 persons who have never dared to hope for tor such a stand stand- standard standard ard before Just for or good measure the Presidents President's money plan la is said laid by Its advocates advocat to b be a pan panacea pan pan- panacea acea aces for depressions and booms Were We're told that we shant shan't have to ride rida that well worn business cycle any more Theres There's to be I a round KO round merry of ot money in- in instead Instead In stead New Deal economists have persuaded Roo Roosevelt evelt It will oper- oper operate operate oper operate ate this way First you put the money In the lh hands hand of ot those who will wUl spend it fastest meanIng those for whom It will win buy the necessities of o life Then the grocer or the tha landlord spends It and eventually It gets Into the hands hand of Mr J P Morgan or somebody If It the rich man Is compelled to pay a big tat fat at slice of his in- in income income in income come to the government then theD the money will be ba back In to cir cir- circulation circulation cir circulation promptly and once more will turn up In the pockets of the man who will spend It f fastest This Is known as the velocity theory of money and it t was one of ot the things Dr Townsend h had in his plan THE BHE Presidents President's economist ad visors have neglected almost none o of our blens blen's In considering the tha redistribution program They claim for or It too that by such uch legislation as the pending wage and hour bour bill employment will b be spread to millions and the tha wages of at mil millions roll mil millions lions will be Increased so o youil you'll eliminate the tha relief problem With more people at work for mole mOl e money ther there will b be such an Increase In national wend spend wending Ing spendIng Ing that prices will V coma come down down and production schedules will b be stepped up to the tha maximum Enlarged volume means a bigger volume of profits pro ts says this school of economists economist and the tha result will be ba apparent in a bigger national income whIch Roosevelt said at a re recent re- re recent recent cent press conference would make it possible to balance the tho thel budget l I It has come to be tx a well lie ac- lieI accepted ac accepted I 1 New Deal theory that that for tor torone forone torone one reason the government must I redistribute Incomes so high in- in incomes incomes In Incomes comes will wUl not drain off an un- un undue un undue inI I due share of buying power Into estment Is denned defined In this case caso as reservIng reserving reserving I ing money tor for or tying up money In equipment I 1 will never be needed unless II a consumer market is la created III I 1 first I ithe Reasoning along these thesa lines UDes the administration is la trying to work out a selective tax scheme which will go after excess pro profits ts The government wants the tha in- in In d dividend I v d e D d tax boosted It sees ees holding com com- companies companies as non productive devices for tor draining off ot the wealth and wants them done away with and ind It will probably find the Idea of ot upping Income taxes are II a aoa on |