Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-11-14
DOMESTIC ISSUES
. COMING TOFR0NT
Officials Appreciate Real I'M
portance of Domestic Prob
| lens They Face.
BY DAVID LAWRENCE.

RY DAVID LAWRENCE.
Business conditions throughout the
United States are more a subject OIL
discussion among government ofnciais
nowadays than questions of foreign
policy or national politics the pass
ing of the election has brought oack
to some extent the non partisan view
uoint which prevailed during the
war Men are not so likely to ex-
press opinions that reflect on tne
opposite political party. There is the
beginning here of real appreciation
of the big problems ahead.
For instance. much talk mas oeen
heard about repeating the excess
profits tax. Congress will probably
do something about it in due time.
hut the interesting question rs being
asked whether the drop in prices as
we'll as profits will not actually re-
tluce the revenues that have hereto
fore been expected from the excess
profits taxes. Some observers have
gone so far as to suggest that for all
practical purposes the business STU
alton will before long have repealed
the excess profits tax.
Controversy Over Reserve Board.
On the other hand, the Federal Re-
serve Board. which stepped In last
spring and began restricting credit
is getting to be as much a topic of
controversy as the league OF nations.
Defenders of the Federal Reserve
Board insist, for example. that the
country is witnessing a readjustment
board has been fully justified in its
action by current Developments in the
economic field.
There has been much talk about the
export market in it's relation to the
political situation abroad, and while
pn1 SuY n n
the bottom has dropped out of the
export market, nevertheless the last
reports issued by the Department of
Commerce indicate a gain in both eX-
ports and imports. The exact anal
ysis OF the export trade in commod-
tiles has not been made and there
seems to be no doubt that some lines
of business have suffered from the in
ability of foreign countries to raise
the necessary credit to finance Amer
lean exports.
ON the whole. the information avail
able here on business conditions
throughout the country reveals q con-
tinued disinclination on the part of
the consumer to buy. Stocks have
therefore piled up in many BUSH
nesses. Manufacturers who have had
orders Cancelled are, however, using
the opportunity to cut down labor
overhead and to weed out inefficient
help.
Change Expected Soon.
that the LIST of January will witness
a marked change. With stocks run
ming low the feeling seems to be that
buying by the merchant will have to
begin, and that the consumer will
also find it necessary to join in the
buying procession. In some lines. like
building. change is not expected un-
til spring The drop in lumber prices
and in the cost of other materials is
such as TO warrant the belief here
abouts that the American people will
begin to solve their housing problem
as soon as the diminution of the win
ter snow permits the carpenters to
begin work.
Another reason for optimism in
Washington, however, is the GER
talnty that European markets will
come back to America just as soon as
financial stability is accomplished.
Everybody seems agreed that Europe
needs American goods, and needs
them desperately. and that the re-
financing OF Europe will bring full
again.
Yet there is very little said here
about governmental aid to credit
operations in Europe. 1.-The European
countries S,tin themselves adopted reso-
conference at Brussels looking with
disfayor on the extension OF more
loans oy governments. Yet that con-
ference did make several suggestions
for the betterment Of trade BY new
credit plans.
With the election out Of the way,
omciai Washington may decide to
take more active part in interna-
fional credit operations even in ad.
vance OF the new administration,
Cutting Down Expected.
~
expenditures will probably be aEi--
tated during the coming session Of
Congress. but as Republican Leader
Mondell once told the writer. it is one
thing to talk about cutting down ap-
propriations. and it is quite another
and cities who suffer from the cut in
the amount of money spent in their
Immediate environment.
Another thing with the high cost Of
nvins many government employees. who
originally got their jobs through politi-
cal influence, haven't been especially en-.
thusiastic about staying in the govern.
ment employ when attractive positions
are available in the business world The
republicans will find the housekeeping
Job they have been promising the coun-
try very easy task in many resnecfs
but the hard part of it will be to rrt
competent persons to come to Wash
tngton to replace those who are every
OdS TeSiSn.nS 10 enter the business or
professional world at higher salaries
than the government mas been able to
afford. ~
Raising of Money Puzzle.
Many of the government departments
nave already given evidence of their
ability to cut down their pay rolls. hut
when al is said and done, official wash
1ngton isn't expecting that the amount.
saved by Diminishing employees will COM
pare with the big amounts that will
nave to be raised to pay the interest
on bond issues and other obligations Of
the government. With the excess profits
TAX falling Oft in revenue and with
liquor taxes naturally diminished the
question Of how the money is going to
pe raised is puzzling everybody. It il
seriously advanced by some officials that
taxes will go UP. instead of down un-
less the tax burden is distributed over
more years than was originally planned.
Some of the experts say this NAV tenn
porariiy ease the load, but that in the
long run the plan will not prove eco.
nomical. Briefly. now that the election
is over. Washington is changing from
the political to the economic phases of
reconstruction.
Copyright. 5000