xt7wwp9t2q46_96 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/mets.xml https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61.dao.xml American Liberty League 37 linear feet archival material English University of Kentucky This digital resource may be freely searched and displayed.  Permission must be received for subsequent distribution in print or electronically.  Physical rights are retained by the owning repository.  Copyright is retained in accordance with U. S. copyright laws.  For information about permissions to reproduce or publish, contact the Special Collections Research Center. Jouett Shouse Collection (American Liberty League Pamphlets), No. 99 "The Townsend Utopia" Speech of Dr. Ray Bert Westerfield, Professor of Political Economy, Yale University, February 15, 1936 text No. 99 "The Townsend Utopia" Speech of Dr. Ray Bert Westerfield, Professor of Political Economy, Yale University, February 15, 1936 2013 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61/59m61_99/Am_Lib_Leag_99_001/Am_Lib_Leag_99_001.pdf section false xt7wwp9t2q46_96 xt7wwp9t2q46 AN INVITATION ITO JOIN THE     *
AMERICAN LIBERTY LEAGUE  
We extend to every American citizen who believes in g  
c the fundamental principles which gave birth to the §
Constitution of the United States an invitation to be- g •
come a member of the American Liberty League. E u  
You may indicate your acceptance of this invitation E
by filling in the necessary information as to your name E
and address on the enrollment blank below and mailing Q _
it to American Liberty League, National Press Building, § * * *
Washington, D. C. §
There are no fees or dues. If you are willing and é
able to give monetary help for the League’s support § Speech ef
your contribution will be appreciated, as our activities §
are supported entirely by the voluntary gifts of our § ])R_ RAY BERT WESTERFIELD
members. Q
g Professor of Political Economy, Yale
ENROLLMENT BLANK 5 University, and Member, National
§ Advisory Council of the American
Date **———m·——· g Liberty League
I favor the principles and purposes of the American g aver the
Liberty League and request that I be enrolled as a §
re um- : ue etwor o t e at1ona
gl member j Bl N kfhN ° 1
*°0¤II`IbuII¤E Q Broadcasting Company
_ E February 15, 1936
Szgnature   g
Name (Mr. Mrs. Miss) E
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6: Street g E   N
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County Slate  
  A AMERICAN LIBERTY LEAGUE
'As a contributing member I desire to give $_____   Nattaaag Headquarters
to help support the activities of the League: Cash here·   NATIONAL PRESS BUILDING
‘ with Installments as follows: __________   WASHINGTON’ D' C'
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  Document No. 99
um  
  c N rw c   ,   as

 The Townsend Utopia   land; the Communist merely by the public
l ownership of the means of social production;
* l and endless others by the mere creation or
_ , abolition of money.
You MAY number among your friends two
types of people who simply will not be con- p T - _ _
vinced of the futility of a pet idea. I refer to   _ EIS evening I am in illsellss the Plen of e
him who spends his time inventing a machine l hvmg Amcmcan umplan Wim has become a
Of perpetual motion and to him who spins \ pulgic menace. ll refer to Dr. Franc1s.E. Town-
uto.pias. These two are zealous, dogged, stub-   Sim j a gr‘iiyThaH`°d’ 68'Y°ar'°1d’ r°ul`€d_ Call'
born and persistent in the pursuit of their idea. l f°rula_PhYS1°1an’ Wh°j aftcr _a useful mic m the
What matters the sneer of friends, the logic of "{“”“f*P“l health S°rv1°°_°armg for mdlgcms °f
trained students, the repeated experience of the gi? c1ty’ §‘0§Fd gaacg mirclltcd th? S°"°au°°g
ages?——they go on inventing——inventing ma- t B OFVIECHI _ gc CVO Vugg Pcnslon Pla?
chines that somehow do stop and utopias that Y It C _c mms llc can hiiwc _ th? sunset °f life
. colored like a rainbow with individual pots of
somehow do fail. _ _
gold for everybody,” we can relieve humanity
forever “from the fear of destitution and want,”
WE cannot but admire their Cellrege and in· and we can restore economic prosperity in a
genuity, their optimistic spirit and devotion to jiffy by enforcing increased spending.
an idea, however compassionate we may be for His formula is indeed simple. The plan pro-
the futility of it all. But we cannot stop at vides for the appropriation of $2 billions by
this. Unfortunately the utopian is likely to be the Federal Government to set up a fund from
a dangerous citizen. The maker of the per- which the first month’s installment of old age
petual motion machine is individualistic, he pensions may be paid. It proposes that the
works by himself, and is quite content in the government pay a monthly pension of $200 to
contemplated personal glory and pecuniary for- every citizen of 60 years of age or more, with
tune his machine will bring him. He can try the requirement that the pensioner agree under
out the machine in his workshop and quietly oath that he will spend the money, within the
suffer the ignominy of failure and take all the Coniines of the United States, during the next
loss involved. The creator of a utopian scheme, 30 days or return the unspent balance to the
on the contrary, straightway tries to convince g0VCrn111e11t· The Il13Ximum amount he is to
the world of its feasibility and desirability. He giye to Charity, Church or fraternal organiza-
beeemeg a meggiah ef a new order; he appeals q Il.011 is HHZBCII PC]? CCIE of l1lS   N-0I1·COII1·
to tho unfortunnto, tho gullible, the disoon. pliance with this spending requirement is auto-
tented and reformist elements. By propaganda meiie¤iiY to Shut of his PenSi0n-
and subsidized effort he builds a national or-   The $2 hillien fund is to be e revolving fund,
ganization to foster a program for the trans- l being i`ePleni$he¤i each 1n0nih by a Federal
formation of our social and economic life along iiiienseeiiensii tax, leVie*i en the g1`0SS dollar
tho ljnos of his dream. amount of every transaction in business, indus-
It is a never-failing characteristic of the uto- ii`Y» <>¤mm<~>r¤¤ and nnance 0CC111’ring in our
pian that he fails to fathom the remarkable e°nnii`Y· The lex is to be Paid nienihlY» and
oomploxity of our Social and ooonomio SyStcm_ it is assumed that the Federal income from the
His formula for transforming the system is tex Will suffice to pay the pensions due. The
therefore naively simple. For instance, the initial WX rate is to be two per cent, and the
Single Taxa; would lift tho world to 8 new President is authorized to raise it as high as
heaven merely by appropriating the rent of three per cent or to lower it to one per cent,
2 3

 as he may deem lt lleeeaaaliy iu oi"i°i` to malll` » ‘ organized in Townsend Clubs well scattered
tain this balance ol. llleome alla outgo‘ The over the country. Several million signatures
eolleelloll of the tax is to_ be liaollltatefl by a have been attached to a petition to Congress in
umversal system of hcensmgitevery seller of furtherance of the MeGI_ee1_ty bin.
commereial things of value 1S to procure a The campaign purports te be neeeeed by the
Federal lleellae> at a fee axeil by the Secretary sale of explanatory booklets at twenty-five cents
of the Tl`eaalll`Y• i each. Purchasers of these booklets, in the ma-
jority of cases, are elderly persons, for the
A BILL, with these and other provisions, has J Piomoiioii oi whose welfare thi? Plan is €SPe-
been before Congress the past year, having been oiaiiY *ioSigiio‘i• ThoY diSPi¤Y 8 ¤1iSSi01181‘Y zeal
sponsored by Representative john Steven Me. which has resulted in large colonies of elderly
Groarty, also of California. If enacted into law Yoiircd P€1‘S0¤S ill Sollthern California com-
it wiii bc administered by local pension boards, municating with friends in the home states to
one in each county, composed of three pen- tho 6aSt OH bfihéllf of the plan. These addresses
sioners appointed by the Seeretarv oi thc have become the nuclei of new Townsend Clubs
Treasury and serving without eoinpensation and propaganda. Whereas most revolutionary
other than their pensions. and utopian reforms are devised, incited and
The hilt has undergone some rnodiiieations engineered by youthful persons, this Townsend
that are signiicant of trend: to the basic "trans- i‘ioo and campaign is diSti11etly of the middle-
actions tax” a supplementary tax of two per ago and €id€1`iY people.
cent on all inheritances and gifts in excess of
$500 has been added, and the present Federal T _ _ _
income tax rates are to be jumped one-tenth of HE MOVEMENT ellioya other big imoo oi
one per cent. Some doubts, moreover, seem to Support _ Prompteo l°Y_ the mandate of iiio
have crept into the sponsors’ heads as to the ade- i)1on’ which would liequllie that lilo Poosion be
queey of texiee Previeieete ret the MeG1_ee1_ty spent each month, some business men have lent
bill, readopted at a Townsendite caucus of Supiiort to thc oompoigm in the follil hops that
the Seveutereurth Ceeereee ee the mevemeene the increased circulation of money would make
official measure, provides for allotting the two an and to the ooprosolon and bling SPo°°iY i`o'
per cent transactions tax to old-age pensions covcryi and thc uooioployeil llaVe° for a Similar
ueet te exeeed $200 e meethe, eee Me reason, been suscept1ble to Townsend propa-
McGroarty himself has declared that if the tax oandib Morcovcio Silico the Towmooo oollolits
eeiy yielded $50 er $75 e memh in iedividuel have attained such sizable numbers, the poli-
Peneiene et the beeieeieee eit Weuid be e eee d t1e1ans, with an election in the oifing, have not
ete1_te1_•,, failed to note that the Townsendites, following
G the New lgeal lead, “have, in the laudable en-
terprise 0 caring for the unfortunate victims
EXCEPT for the extravagant claims of Dr. of the depression, demonstrated the vote-getting
Townsend as to the efficacy and benefits of his i power of a sweeping state subsidy to anybody
Scheme, the most amazing fact in e0I1I1e0ti0l1 and everybody in straitened circumstances? i
with it is the tremendous number of our people Aspirants for political office have courted,
YiZ.i§aZZ 2:::2;;;i;. YLJZZS .`£Z°£Z°'20ZZiZZ§i$g ;‘i`{£ZE.i§ ii? $ZtE`Q"’ To "°“’“i g"°“‘° °i "°‘i`i°
. n promises Townsend s
or tested figures, but according to his own esti- plan outdoes the New Deal in caring for the
mates he has between eight and twelve million “Forgotten man”: What does it matter that the
followers, about seven million of whom are promises are visionary, utterly impossible of
4 s

 achievement, if thereby an “itching palm” can S€c0nd° Whcma? the people, of sixty years at
be persuaded to sign a ballot for a politician momlmiw coglsututc about moo por oom ef mo
mad *0* alma? §°§Z.‘Z`L.iLZZ”§...yci?.i? iiliii wiieiikcnup rim
9 9 S rs 0Wu*
send ur es tha ' ' •
AND so this gigantic utopian campaign has matés tint no; hnjnggalttignvogjoloitaglooaili esti;
developed—based on the natural SYmP¤thY fer t eligibles will embrace the opportfinity to he-
the old and indigent poort on the desperate come pensioners, the others having private
spirit of the depressed business man and the inoomos of more than $2400 a year Or, for Semi-
unemployed worker. and Oh the Culimhht SUP' · mental reasons, refusing to become pensioners
port gf selnsh politicians——and fanned to fever of the state; the proportion of pensioners to
hiiatohy tht! shrewd hut ¤hS€1`uPul0hS US6 ef eligibles will increase, because the motive for
religion and family S€ht1m€htS» and ef the Cu' thrift will be stifled and fewer will provide
pidity that can easily be evoked ih the heart ef funds for old age and because the stigma of the
the less fortunate members of society. dole will fade rapidly when almost every old
But the explanation of why the Townsend Person is receiving it; and fourth, the Probable
plan has attained such prominence does not in inflation that will accompany thc Operation of
the least justify any €XP6¢t¤ti0h WhatS°CV€1` the plan will make larger pensions necessary
that the plan is feasible and practicable. 01‘ that that is, if the pensioners are to maintain their?
it is not fraught   devastating dangers to one standard of ].i.V1I1g, II] Sunllnaryo QS the ygarg
Q and all. This is not the first hoax that has roll on, tho burden of pensions will become
attained a multitudinous following. Dr. Town- t larger in absolute amount and relative to the
send is not the first messiah who envisioned a total population The 1934 basis will thot.o_
"new heaven and a new earth" and sold the idea fore, be conservative and understate the burden
to a gullible public. History is strewn with the °
wrecks of utopias even more plausible than
TOARP. History records the collapse of one THE United States Bureau of Foreign and
utopia after another, but the aftermath of dis- Domestic Commerce in cooperation with the
illusionment, of financial loss, of pain and National Bureau of Economic Research esti-
misery remains unwritten except in the broken mates the national income paid out in 1934 at
hearts of the generation. _ $50,189 millions. Of this sum the pensioners,
who constituted about nine per cent of the
LET us examine the Doctor’s prescription. On P°P“1"‘“°" would be rocciving Hftymivo Por
the basis of the 1930 Census the acting chair- GFDL If the $27’468 mllhons gains te Pon'
man of the United States Central Statistical iggigrs altcftdgduclaed from the total insane-
Board, recently estimated the total number of * $22 72:1113 _;1_ at t o tloopcnolonoo Populatloh
persons in the United States in 1934 who were ,’ ml 10m' Dlvldmg tha Sum among tho
Sixty years of age or Over at 11,449,00O. The estimated numioer of persons under sixty years
total pensions of these persons at $200 a month. ' glgglgc (nam€fy’ 1l}4’797’000) _ m 1934 allows
would amount to $27,468 millions. For sake of th $gZ;0y€ar Or t C n0n'PcnB1fm€d’ as against
argument let us assume that the plan can stay B a year for the pcnslouoda at abeut
in operation for a generation. As the years one-twelfth as much' But_ even this $197
went by the amount required for pensions amolmt gmuld not be realized by the mm'
would grow in size, for several reasons: first, Sfnslotric bccauic the pensioner? may under
on the basis of calculated trends the total popu- E Sc eme commuc to mC_6W° mcomo from
lation is forecast to expand until about 1960; Ot Br Sources than the pCnS1°uS° which moans
6 7

 that the non-pensioners’ share of the national erans not in good health whether their com-
income would be reduced by that amount. plaint was from war service or not; in 1907 was
begun the practice of pensioning all old soldiers
THE UTTER absurdity of Such a Setup is wg;/eho had served at least ninety days in the Civil
, ar. A regular pension racket developed after
Surely alapamaa Call anyaaa ba aa alupla lla 1890, and historians describe what went on in
ta lmeeme Oar young mall alla Woman wlll _ Washington as “pension scandals.” In 1917 the
walk for and llva all all avaraga almual magma 21; Secretary of the Treasury devised a system of
of lass than alan m order that tha Ola lalka   insurance and compensation for the soldiers
abava Sixty may squander $2400 a yaarl Maylaa   wounded and disabled and of allotments for
there are some sons and daughters whose iilial their dependents; the System was to bc in his
devotion will persuade them to support such an words, aa Substitute for the Pension System as
egregious project, but they are surely rare. But applied to the present war, and ought to make
there are millions of other sons and daughters impossible, as it certainly will make um1cc€S_
whose Parents are deceased deserted or what sary, further pension legislation with all its in-
not and who think of themselves largely and equalitics and favoritismy You are too well
whe eennot be Pereueded that the old folks acquainted with what has happened during the
ehenld be the ones to SPend the money end “last seventeen years—a huge bonus, a vast sys-
enjoy life in ldle equenderv while the Younger tem of disability allowances for men whose dis-
generations worked and lived on e twelfth ee abilities were not related in any way to wartime
much income ter the Bret elxtv Years of their service, hospitalization for ex-soldiers suffering
doubtful eXletenee· The Communists and others from diseases in nowise traceable to their war
hereto and threaten enr Present economic erder service, civil service preferences in Federal and
because, 3S   hold, tlIC].°C is an unfair diSt].°i* State culployulcntaamyou arg, I Say, too WGH
bution of national rneerneé theY demand that ` acquainted with this record to fail to grasp
the Werkera reeetVe more of the product of what might be expected under the Townsend ·
farm, factory and mine- But the Townsend Plan. Few veterans of the World War are
Plan is the very antithesis of this, for it would Sixty years Old; meet gf them are in the very
accord to the idle old a dozen times the income prime of life, yet they have seen fit selfishly to
going to those who work and produce. If com- extort bigger and bigger benefits from the state!
munism is a menace to our social order, the If, as under the Townsend plan, it is deemed
Townsend scheme would be many times more best for society to keep idle from nine to sev-
menacing. In fact, if a serious effort were made enteen per cent of our population, however able
by the state to institute and enforce the scheme, and willing to work most of them may be, and
it would shortly end in chaos or parricidal civil to force them to spend riotously the produce
war. _ of the younger generation, if this principle of
' enforced idleness and squander is adopted as
IN ALL probability it would be chaos rather   lha basis of our economy, what d°f°°* of logic
. 1S there to the people between 50 and 60 years
than war; lt would be a complete breakdown, . . . . .
_ _ of age taking up a similar 11fe of idleness and
preceded by a scramble for bigger pensions and f k. b. .
for pensions to lower age groups. Does not the Squaudma or Evan 0 aa mg lager pcnaums
. . than $200 a month`? Will not the more 1dle-
record of war veteran pensions and bonuses 1n- _
dicate what would happen? Civil War pensions nasa and tha malta Spamlmg maka lar gllaalali
commenced immediately after war for war dis- natmnal Pr°SPerltY? And would not a v°t°'°°u'
. ablcd Veterans Only; between 1890 and 1907 scious Congress soon be prompted to heighten
the principle adopted was to pension all vet- the “PreaPerltY” by including the bereaved
3 9

 widows and widowers of deceased pensioners, _ _ , A
including thc ccgmup of comparatively young thing to ease and brighten their final years
persons who would have wed senescent but sus- Should mnkc us think _S0bcr1y and soundly
ceptible pensioners because of their attractive along posélblc mmcdlal hues and nOt,t0 Plunge
incomssn? headlong 1HtO “a scheme so cruelly mischievous,
so crassly unworkable, so filled with possibili-
ties of wreckage as the good Dr. Townsend and
LET US Strikc a balance bctwcfm maS°n eee ' his assisting high pressure promoters are seek-
sentimentality. Everyone concedes that old age ing to {Dist on this counttyje
is a terrible period of life, especially so for
those destitute of the means of comfortable ex- ‘ WHEN ONE fh th _ _d f
istence. As one watches his totterin arents turns rom e pension S1 e o
and comes face to face with the stern ieglity of tnc Tnwnscnd Plan to the taxing §id°’ EEeE 1S’
old age, he shudders and his heart bleeds in ftlom the outgg silde pif (the l:E{ex1;ctlv1ng Fund to
sympathy and he is moved to do even the im- E 6 i¤<><>me ei ce C n S t C ee even mnrc
possible for them. Let us acknowledge the fact impossible of operation and more fraught with
that many millions are less prepared to face devastating danger to our economic system.
old age than heretofore, their small fortunes The Fund is to be replenished monthly by a
having been swept away or used up during the tax. of two per cent, more os less, on tall trans-
degrfssicu; ithathmecihanizedkindustry has 1oSS astiorins 11;vo¥1tnglttlglenizgergsfcaigllgzlgxiitctgnit tl&;!;§rB
an ess use or t e o der wor ers, who 'oin the o; va ue. e I. -
unemployed and unemployable class at] earlier tinsky indicate that the total volume ot trans-
and earlier ages; that there are thouaauda gf actions subjecglttg tltelproposed tgzgltwoigld hav?
people above the age of sixty who are de end- been about i ions in t . 1nce -1
ent upon either private or public charigy to would have been necessary to raise $27,468 m1l-
keep them from starvation; and that the old lions for pensions due that year, the necessary
age allowances in most States, and even the pen- tax rate would have been twenty-six per cent
sions under the new Social Security Act, are too instead of two per cent as proposed by Dr.
low, making it quite impossible to live on them Townsend. ·
with any degree of decency or comfort, at least This calculation ignores the cost of admin-
in a large city. Let us concede that there is istering the tax and the payment of pensions.
some justice in the outcry of the poor against One of the primary and generally accepted
the rich, “against concentrated wealth which is princilples ofhtaxatipn is thait tthe expinse EH
' volve in t e co ect1on o axes o sm
ili;H;;(i11f;§’ the Bumarmg of the Old as WC1] as amounts from small taxpayers is likely to con-
stitute too high a per cent of the yield and that
‘ ' isitoria
TEEEE AEE   eeee   eee eeekee  · §ZZ°FQZ°iZ§§.F§§.°§5§ I2`ESL}.’§r§$§cL”?$‘ be uu.
altruistic sentiments, and if there its any prac- grated by the people. The Proposed system Ot
ticable solution of the problems involved, 1t licensing an Sellers of cccommcrcial things of
eeeele Ee eeeeee eee eeeeEe>’ee· Eee eeee e  »» ru acauca to uc acrcmc of aaa.ar..
noble sentiments should not arouse us t to hiring the Pensions through county boards,
°Sp°“S°.“"‘”1" eeeeee P‘"°P°“1S fm “°"`““g would rrrcaa arc cara1c1rc1urcur of a bureaucracy
the paucmi cfm] though. tim Proposal cnmc of mastodonic size and ravage the personal lib-
from an experienced physician whose motives, srt which has been the most Precious Amsta
so far as I know, no one quest1ons. The fuller _ Y _ 1
realization of the dire circumstances of the in- lcfglojczrs Lcalizc what a twentshsix pst, cent tax
digent poor and of the necessity of doing some- on cvgty transaction would mean? In the yam.
10 11

 . . • ° d d t
of peak prosperity, 1929, most corporations lama am°um’ the tax IS thus compigg CTI;
would have found it impossible to pay even the _ Cvcry wrnovem aqliai On a tgx Miha a °1_€ atc
two per cent Townsend tax out of profits, either final cmlsumer gh ave ti; Far ,; biiimg to
because they had no net income or because net tax passed On' 0 C Cast 0 _u1Vl:ng, 1 lar C art
. · in
1ncome was less than two per cent of gross trans- mac' The $240 Penal:] wl, died mics P A
actions. A tax that cannot be plaid out of in- eeeeeeeed m paymg ht Bai. m lthc Smalecon
come or profits must he paid “by losing capital ' eelee tax bears most cava Y on ,6 . ,,
· · · sumers. It 1S not a tax on the so-called rich.
or by reduc1ng costs of production or by 1n- _ _
· · In fact the pensions required under the Plan
creasing prices. Payment of the tax out of cap- 1 h h ld not be Obtained
ital means bankruptcy. Reduction of costs ° eee Sohargfcht al: t cy cfu me if at all from
• c 4
would have to take place largely at the expense fmm al; mc ’ft cy mus · C; salaried erilploy
. . . - n ·
of labor, wh1ch would be politically and eco- the ml Ions 0 wage car ° .
- · · · · ees farmers and owners of small businesses, the
nomically impossible. The only rema1n1ng ’ ’_ .
· · · great majority of whom have annual 1ncomes
method of pay1ng the tax 1S to pass 1t on to the
. . . 99 of far less than $2400. lf the taxes are not col-
purchaser in the form of higher prices. (Na- d h T W uld no doubt replete the
tional Industrial Conference Board.) lactc ’ t C raasury 0
Fund by the 1ssue of paper money. The con-
T sequent inflation would be an even more unjust
HE burden of financing the Townsend · h
_ system of taxing t e poor.
Phe weehi Pehelyee the °°“”u”Y’S Peeeeehee nn Townsend rejoins nent the forced spend-
hede end *heehee· Ah baakae eeeeh exeheheee ing of the pensions wonn revive business one
factories, insurance companies and business in- increase national income, The Brookings Insti-
st1tut1ons of every nature would be forced to tutieu and ether researchers have eemputed,
eleee immediately the Townacaa Plan was Put after extensive investigation, that, on the 1929
1nto effect. The value of secur1t1es would drop price level and with thc 1929 capital equipment
Pmclpltataly _Pam° would mlgn _SuPr°m°' fully employed, the national income could have
There are outcries now against the existing tax been inereeeed about 20 Per cgnt Only, The
heedee The heel thee eeeee Whee eeme Shehee Townsend rex on such an increase of national
recently imposed a general sales tax of one or ineeme would fall far Short ef meeting the pen-
two Par Cana was leed °n°ugh‘ aanaye if Yau sions. Moreover, if the efforts of the past few
can, the addition of a tax absorbing twenty-srx years te Prime the industrial Pump by creation
Par Fan? ef gross Salaa The T°Wna°ud tax la of consumer purchasing power have taught the
rmt m hcu ef any ethee taX’ axaap  parhapa the world anything, it is that consumer spending
Present eeeh ef Support ef the mdlgcm °ld' will not bring recovery. Unless care is taken
with mu. mmmtmg nauanal dcbt eee budget to preserve and increase industrial profits, all
d°afi°itS’ with Phe trend toward gfcatcr _g°li°rn` efforts at forcing recovery will similarly fail.
meet Cxpendlmrca for new eeeeel °b·lc°uVca’ i The Townsend Plan is the most devastating at-
With the imposimm ef Payroll eexee t° pmvida tack on industrial profits conceivable. After a
for the new Social Security system, the prospect Short run ef med buying by gld men and
la alraaay far avafwhalmlng taxauaa ana m' a women of consumer’s necessities and foibles,
fiation, without the Townsend Tax. the whole Structure would eeuapeee, fel- the very
capital of producers would have been consumed
THE Townsend Tax is a tax on transactions; and not replaced.
if at all possible, it will be added by the seller
to the price of the commodity or service sold; THE Townsend Plan embraces ebeut every
to the degree It is added, li HECS tha PHCT aaa economic absurdity that has had a vogue during
the next seller computes h1s tax on the accumu- 13
12

 the current depression. The Doctor would bring  
prosperity and a new social order by means of Pamphlgtg AV3il3blB
political action and legislation. He would cur- *
tail output by putting from nine to seventeen _ _ hl d
per cent of the people out of active production. COPIES of th'? folbwluyg P“mP cts Amd
H · other League l1terature may be obta1ne
.e would pay one class extravagantly to refrain u on application to the Leegue»e national
from production. He would make the people · hgedquarteree
richer by havlng them Work less and SP€nd Statement of Principles and Purposes
more. He condemns all warnings that his égwrlgcau Libsfty L¢¤S¤¢—I*S P1a*f°’m
scheme involves a devastating inflation of the ‘ Ingetiezluus
price level. He would put $27,468 millions or ¥£e 'gihifgy Hcgir Week 
. . n
more 1nto the hands of foolish spenders, forced Priie geulggl Ompa y
to spend for eonsumptive purposes. He would $1; S'I;1YI;¢; n1;¤15;1g;¥;<‘;¤;:3 the New Deal
compel a rap1d turnover of money and credit The Presidente Tex Pregrem
by threat of the disappearing value thereof. He ‘ Expanding Bureaucracy
. . . Lawmaking by Executive Order
1S interested 1n the Forgotten Man. He would New Deal Laws in Federal Courts
redistribute wealth and income. He would end gonsumers fiend the  
. . . n erous xperimen a ion
thmfh nlaklng It a ·m0ck€ry’ ant? brand thc ac` Egmfomic •Planning——Mistaken But Not New
cumulation of capital as unsocial. He would Work Relief
. · · · · - · The AAA and Our Form of Government
assa1l industrial profits by 1nord1nate diversion Alternatives te the American perm 0; govern.
of product to the less worthy or unfortunate xgent { C
consumers. He would promote social security %heri)g§?H;;u%1eet0HgrcSS
by taxing unconscionably that group of upper Prcfessvrs and the New DWI
d ·dd1 1 1 h h h · Wealth and Income
an ml e C ass P°°P 6 W 0 ave t 6 Vuitues The President Wants More Power (leaflet)
of thrift, industry, prudence and independence The Townseéid £Iighgnareh(lleafl`;¢t) tt Shame
• ' 66 ° L 8
and provide for themselves. Bedazzled by 1m- Tl;Ie°%?1;;gefI;EeSLew}€§:€n tgc Egcscnt Crisis,
agined glimpses of the Promised Land, he dis- Speech by James M. Beck _
· · · Our Growing National Debt and Inflation-
dains the argumentation of contrary-mmded Speech by D,._ E_ W_ Kemmere,.
economists, the curt dictum of the local banker Ingatiore is Bad Business—Speech by Dr. Neil
. . . arot ers
that the dung Wonft W0rk’ and the Opuuon of Arousing Class Prejudices—Speech by Jouett
the jurist that it is unconstitutional and con- Shause
. . . The Fallacies and Dangers of the Townsend
trary to the pr1nc1ples upon which our country P1en_Speeeh by D,._ W_ E_ Speh,.
and our progress are founded. In all these re- What _of I936?-——Speech by James P. Warburg
h · 11-1 d { l Americanism at the Crossroads——Speech by R. E.
spects e IS a true c 1 o the New Deal spree Deevemine
in utopian fairyland. Isn’t it about time for y Thre Conytuéion and the New Dea1——Speech by
. . . r es . arson
the Amer1can people to ecome back to a realistic e Theugmerieen C0nSeimtieu_wheee Heritegegm
world and to quit chas1ng fairies in the Land Speech by Frederick H. Szmchjield
f M k b I- ·; The American Form of G0vernment——L_et Us
0 a c` C 18VC‘ Preserve It—Speech by Albert C. Ritchie
lj The Redistribution of Power——Speech by John
V W. D ` ·
; Time tomSl:`bp——Speech by Dr. Neil Carothers
` “ The President Has Made the Issue——Speech by
J Charles I. Dawson
The Facts In the Case-Speech by Alfred E.
Smith
it
AMERICAN LIBERTY LEAGUE
NATIONAL PRESS BUILDING
WASHINGTON, D. C.
14
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