Professor Hansen Urges Government Taxes On Savings

In a statement to the Temporary National Economic Committee in Washington, D. C., yesterday, Alvin H. Hanson Luelus N. Littauer Professor of Political Economy, suggested that the burden of taxation be pleased more heavily on savings as a means of forcing capital into investment.

Professor Hansen claimed that an outlet must be found for the nation's savings in expansion add new construction to avoid chronic unemployment.

Suggests Three Steps

He outlined a plan, suggesting; the development of new products and industries; the creation of a railroad equipment company financed by the Government, to purchase railroad equipment for leases to roads as needed; a reduction in the guaranteed rate of interest under the Federal Housing Administration program.

"If it is deemed advisable," he said, 'a considerable part of public investment could quire well be paid from taxation, provided the taxes were so loved as to fall on savings and not on consumption."

The Temporary National Economic Committee is studying savings and investments. Several score Government experts, financiers, and industrialists heard Professor Hansen's statement.