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Show THE AMERICAN WAyI - "To be prepared for war is one of the most effectual means of preserving peace." So said George Washington in his First Annual Address to both Houses of Congress on January 8, 1790. This was just another way of saying, "In times of peace, prepare pre-pare for war and perhaps you won't have to fight." What is true of military preparedness pre-paredness is also true of economic econom-ic preparedness. The statement of the Father of Our Country could very well be paraphrased to read: "To be prepared for scarcity is one of the most effectual ef-fectual means of preserving plenty." The billions of dollars which Americans have accumulated in the savings banks of the nation, in government bonds and in equities in life insurance; and the further billions they have invested in industry and business, busi-ness, and fairly convincing testimony tes-timony that they are sold on the idea of putting something away for that "rainy day" which prudence pru-dence tells them may come, but which they hope never will. Business, which in the final analysis, is owned by the people, has given ample proof that it believes be-lieves in storing up against the "rainv dav." As Droof of this. take the six-year depression period per-iod from 1930 to 1935, when business men went through the wringer. If any further proof were needed as to the wisdom of "preparing for scarcity in times of plenty," American business furnished it beyond any doubt during that six-year period by paying out in dividends 25 billion bil-lion dollars in excess of its total net income produced. It is not pleasant to conjecture as to just what would have happened hap-pened to this nation, if during the prosperous 1920's, business had not wisely put aside a surplus sur-plus to take care of some future period of scarcity such as was actually experienced from 1930 to 1935. In view of the above, it is more than passing strange that the New Deal Government did its utmost to discourage business, in fact, to actually prevent business from putting aside reserves for future contingencies and expansion. expan-sion. Business was given a slap in the face instead of a pat on the back penalty was meted out instead of a reward for having hav-ing exercised wisdom and fore sight. . But on second thought, it is not strange. What else could have been expected from an Administration, Ad-ministration, the policy of which seemed to go: "Spend today; what do we care about tomorrow?" tomor-row?" a government which had;jiot the slightest idea as to the i meaning of the word "prudence" "pru-dence" an oligarchy which knew only how to dissipate the taxpayers' money and was abysmally abys-mally ignorant as to thrift and economy. The 80th Congress, despite presidential interference and pressure group opposition, made a very good start toward re-establishing thrift in government. In its second session, it should do even better. Let us hope it will make further cuts in the budget and give the axe to many more tax-eating unnecessary Federal Fed-eral navrollers. This nation was born in thrift it was developed by thrift ! it has lived, breathed and had its I being by means of thrift. During the 14 years of the New Deal, America was gasping for breath some foreign substance, got into its wind-pipe. That loud coughing you heard last November Novem-ber 5th was the nation trying to clear its throat. Who knows but we will soon have re-embraced the good, old-fashioned old-fashioned notion that an individual individ-ual or a corporation or a government gov-ernment that exercises thrift is to be commended, not regarded as something almost criminal that once again this nation will subscribe to the sound idea that "To be prepared for scarcity is one of the most effectual means of preserving plenty?" |