New-York tribune., 1921-01-22
Killing the Goose
Administrations Ministers of Fiinanc.
Blamed for Depression

~@ASA AOA 1@CRiCcolOu
To the Editor of The Tribune.
Sir: There should be no regret st
the going out of the present Federal
Administration. It has been q wild
orgy of extravaganza and disregard Of
consequences. Its final days are no bet.
ter than its first. There is revealed IN
none Of its acts the virtue Of statesman.
ship or other capacity for affairs. After
fastening upon the nation 9 burden Of
debt that will be visited upon the second
and third generations, 1t stands In I'm
potent hesitation at any adequate plan
of taxation that will suffice to meet
the enormous sum required for the pay
ment of the interest on the public debt
to say nothing Of any part of the prin-
cipal
With an exaggerated idea of finance
and reckless disregard of the tax
paying public, its ministers have talked
and executed in terms of billions when
thousands were nearer their capacities
of fiscal administration. Its manage
ment of the reserve bank, designed as
the balance wheel and regulator Of the
public credit and to preserve the con-
fidence. of business, has been used, un-
willingly, perhaps, to alarm the debtor
class IN
precipitate an era of business depression
that has cost the country hundreds Of
millions of dollars without q redeeming
feature to its credit Its announcement,
as 1T were, from the housetops, that bank
credits would be withdrawn from non-
essential production, created in the
mind Of even the essential producer fear
that he was listed as the next victim
SO believing, he proceeded to put his
house in order for a period of financial
bad weather. The least knowledge Of
cretion at such juncture. AS the bell
wether goes over the wall, 50 goes the
whole flock. 1t is little wonder that
under such leading the whole public
went on crusade of price busting and
short consumption.
But to what good? With the lapse Of
consumption came short production,
unemployment and consequent dis
tress, with benefit to no one except
small class with fixed incomes. These
did not comprise 10 per cent Of the
country's population. The prosperity OF
the country is bes. served by full en-
ployment and maximum production.
This scarcely need be said, indeed it Is
almost automatic. Any condition, there
fore, under which normal standards can
not be maintained betrays a weakness o.
finance or a want Of correlation in the
machinery of production and business
Government, though not responsible
for the shortcomings of the business
world, is charged with the duty OF pro-
viding the best possible working con-
ditions and encouragement to every &C.
tivity of value to the public. This nas
not been done. Rather there has been
encouragement to business, not only
to the damage and loss of business
but to the nation as we'll, in diminished
incomes and consequent decreased IN
come revenues.
Now lament goes up from Washing
ton on the demise of the goose that laso
the golden egg, and our shortsighSeo
ministers Of resources and finance sfo
turning again to Congress for otnes
and more searching mears to fnd tho
depth of the business pocket. 10"
will find 1t lean one.
C. Il. HAWKES.
Elmira, N. Y, Jan. 1s, 1921.