PAGE SIX
UNIVERSITY DAILY KANSAN, LAWRENCE, KANSAS
APRIL 24,1947
Big Four Peace Layout
Kansan Comments
Can We Avoid An Economic Bust?
President Truman has made a plea to business to reduce prices which he considers abnormally high. Response thus far is small and scattered.
On the surface there appears to be ample basis for the request for price reductions.
U. S. corporation profits after taxes for 1947 are rolling in at a rate of 15 billion dollars a year. That figure has never been approached before. It is three billion dollars more than last year's profits.
Such a business recession—or perhaps a bust—seems to be in the offing. This is no doubt one reason why many corporations are trying to increase reserves.
Business savings for 1947, if they continue at the present rate, will total near 10 billion dollars, another record amount. Although profits are almost double the 1929 level, dividends are running 700 million dollars below the amount for that year.
In a capitalist economy profits cannot be rationally judged on a short-term basis. Sound large-scale businesses must make adequate provision for the future. Allowances must be made for replacement of inventories and equipment. Reserves must be accumulated to offset the effects of possible business recessions.
But these figures can be misleading. Though profits are twice what they were in 1929, the national income has also doubled. Individual industry profit reports for 1946 indicate that high earnings were largely caused by record consumer spending rather than excessive profit margins.
But by doing this they are really hastening that slump. Present high prices are siphoning off purchasing power and in turn these profits are going largely into savings rather than being poured back into the economy in the form of expanded industrial facilities.
Whether our economy will straighten out without a serious
bust is anybody's guess. Our economic future is far from clear. And as long as that condition exists big business will lean toward large reserves and away from the risks of new investments.
The answer to our dilemma will be greatly influenced by what policies business adopts in the next few months. A healthy economy for the entire nation will not be achieved as long as capital is excessively hoarded by the highly important big business minority.
That segment of our economy must decide whether its policies will be formed for personal short-term benefits or for the long-term good to our entire society.
K-State Is Still Minus
Kansas State college is still without a student union. The most recent effort to obtain a building was stymied by the United States office of education in Kansas City.
A. L. Pugley, dean of administration at Kansas State, said their plans for obtaining the recreation center at the Herington army air base had to be dropped when a prior claim to the building was filed by the Kansas City office of education.
The army will declare the building surplus next week.
The University Daily Kansan
Member of the Kansas Press Assn., National Editorial Assn., Associate Publisher, College Press. Represented by the National Advertising Service at Madison Ave. New York City.
Student Newspaper of the UNIVERSITY OF KANSAS
Managing Editor
Asst. Man. Editor
Asst. Man. Editor
Editor in Chief
City Editor
Art Editor
Asst. City Editor
Asst. City Editor
Telegraph Editor
Art Editor
Marcelia Stewart
Marcela Stewart
William T. Smith Jr.
LeMoyne Frederick
Shirley E. Bales
Shirley E. Bales
Alan J. Stewart
Alan J. Stewart
Eloise West
Dear Editor----
Frailties of the Press
Business Manager. John D. McCormick
Circulation Manager. Thomas S. Cadden
Classified Adv. Mgr. John Schindling
Promotion Manager. William K. Brooks
Promotion Manager. William K. Brooks
Our campus is provided with the services of the Dove, which is altruistic in aim, liberal in policy, and indicative of honest, sincere journalistic reporting.
Now another publication, the Eagle, is making its appearance with what it claims is "the majority campus opinion." Its organizers have publicly stated that it will take a specific stand on seven issues all of which, as they put it, personify "the majority campus opinion."
News publications are common carriers. When those who control them arrogate to themselves the right to determine by their own consciences what shall be reported and for what purpose, democracy is unworkable. Public opinion is blockaded. For when a people can no longer confidently repair "to the best fountains for their information," then anyone's guess and anyone's rumor, each man's hope and each man's whim becomes the basis of government.
The most fundamental problem of all for honest and intelligent journalism is the fact that nobody, broadly speaking, really wants the truth—though we all insist that is our sole desire.
The radical wants statements which support a radical point of view; the liberal wants liberalism, and the conservative wants reaction.
It is a universal human failing to close our minds against information which does not fit in with our preconceptions.
Our favorite newspapers are our favorites quite as much because of the things they leave out as those they print.
In short, the chief frailty of the newspapers is the frailty of human kind.
Robert Anderson, Jr. College sophomore
Rolls CA* Ink on dryl
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Writes 3 months to
3 years without re-
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Reloads cleanly with a cartridge.
CA* means Capillary Action Cartridge.
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EVEN THE STORK'S GOING HIGH-HAT
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