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Story
May 12, 1937
The Bismarck Tribune
Bismarck, Mandan, Burleigh County, Morton County, North Dakota
What is this article about?
In Washington on May 12, Secretary Wallace warns that the federal government must use its taxing power to prevent future economic booms and depressions, predicting a potential crisis in the 1940s similar to past ones, amid rising national income.
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TAXING POWER MAY CONTROL ANOTHER BOOM, DEPRESSION
Wallace Visualizes New Functions of Federal Government in Economic Regulation
Washington, May 12.-(P)-The federal government, Secretary Wallace says, must use its taxing power in the next few years in an effort to control another boom and depression.
"A new science of government is in the making," he declared, "the broad outlines of which are just appearing."
The farm spokesman in President Roosevelt's cabinet declared the government's place in the future would be partly a policeman, partly a co-ordinator, partly a clearing house and partly a stimulator.
"There seems to be a tendency for a boom and crash to come about once every 10 years," Wallace said. If 1919 produced 1921 and 1929 produced a 1932, we cannot help from looking to the possibilities of a 1939 producing a 1942
"There are indications that organized business, labor and agriculture, left to themselves, may produce a situation some time during the next 10 years which might bring about some time in the 1940s a repetition of that which we experienced in 1921 and the early 1930s."
The secretary said many economists believed the national income would climb to "at least 80 million dollars" by 1940, unless a catastrophic war interrupted. National income last year was about 60 billions, compared with a depression low of about 45 billions and the 1929 peak of about 79 billions.
The secretary said that many corporations and private individuals would make large profits and have large savings in the next few years.
Wallace Visualizes New Functions of Federal Government in Economic Regulation
Washington, May 12.-(P)-The federal government, Secretary Wallace says, must use its taxing power in the next few years in an effort to control another boom and depression.
"A new science of government is in the making," he declared, "the broad outlines of which are just appearing."
The farm spokesman in President Roosevelt's cabinet declared the government's place in the future would be partly a policeman, partly a co-ordinator, partly a clearing house and partly a stimulator.
"There seems to be a tendency for a boom and crash to come about once every 10 years," Wallace said. If 1919 produced 1921 and 1929 produced a 1932, we cannot help from looking to the possibilities of a 1939 producing a 1942
"There are indications that organized business, labor and agriculture, left to themselves, may produce a situation some time during the next 10 years which might bring about some time in the 1940s a repetition of that which we experienced in 1921 and the early 1930s."
The secretary said many economists believed the national income would climb to "at least 80 million dollars" by 1940, unless a catastrophic war interrupted. National income last year was about 60 billions, compared with a depression low of about 45 billions and the 1929 peak of about 79 billions.
The secretary said that many corporations and private individuals would make large profits and have large savings in the next few years.
What sub-type of article is it?
Historical Event
What themes does it cover?
Fortune Reversal
What keywords are associated?
Taxing Power
Economic Regulation
Boom And Depression
Federal Government
National Income
What entities or persons were involved?
Secretary Wallace
President Roosevelt
Where did it happen?
Washington
Story Details
Key Persons
Secretary Wallace
President Roosevelt
Location
Washington
Event Date
May 12
Story Details
Secretary Wallace declares the federal government must use taxing power to control future booms and depressions, predicting a cycle every 10 years leading to a potential 1940s crisis, with national income expected to rise to at least 80 billion by 1940.