Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-08-17
ECONOMISTS DOUBT
4 BUSINESS UPSET
Coolidge Decision Taken to
! Dispute Political Effect
Upon Conditions.
BY DAVID LAWRENCE.

Those Government officials who are
yersed in the trends of modern bust
ness think that the Coolidge announce
ment about his desire not to run again
may DO something they have been try.
ing to DO for years--nameiy, to con
vince the business men Of the country
that the ups and downs of business
cannot be traced to politics.
Many business men have for years
been convinced that a change of ad-
n1inistration must mean period OF
uncertainty, that even A change Of
personnel in the presidency. when i
does not involve a party change has
its disadvantages to business.
Not so do the economists and stu
dents Of trade developments believe.
Thev now point to the episode in the
stock market rs confirmation of their
view that stocks are bought and sold
on dozens of different factors. and that
while an announcement like that of
President Coolidge might for day or
week add TO an otherwise unsettled
condition. it cannot permanently At
feet those things which make or I'M
make prosperity.
Difficult 10 Discuss
While business conditions are al
WAYS q difficult topic for Government
officials to discuss over their own sig
natures, without being suspected of
trying to affect faVorahlv or adj
verselv the fortunes Of the party in
power, there IS, on the other hand, a
readiness 10 talk freely when these
officials know they are not to be
quoted and flung into controversy.
In q. nutshell. the concensus here is
t,1N
been none too good in the first six
months Of the year in some lines, will
continue I'd improve in the last six
months Of the year and that the ne
rlod through which the country has
passed is one Of those recuperative
stages which mean healthier and
steadier progress in the end.
Government officials lie that
business men are concerned with all
fluctuations, but they do not foresee
any major declines; in fact, they argue
that the easy money, situation proves
that aior declines cannot come
while the United States keeps on de-
Veloplng new markets for its sur.
pluses and internally improves its
methods of manufacture and distribu.
ton for the home market.
Oppose Oyerexpenditure.
Business efficiency has made it pos
sible in many lines for larger profits
to be obtained, and it is significant
that the income tax experts are not
talking of any decline in revenues,
but are merely crying out against
possible overeXpenditure by Con-
Eress. They know that the tax rates.
when reduced, will continue to be
productive.
Basically, the thing which business
most fears always is an era of rad- |
caiism and uncertainty with respect
to the use of the regulatory power, |
hut, while Congress may pass num- !
Ter of resolutions of investigation, it |
j. not at the moment likely that any
radical change in the attitude of the |
government toward business can |
ome out of Congress which is com |
osed of SO many conservatives in |
the Republican as well as Democratic |
arties. The margin of safety for
administration measures may be
small, but the veto power is Just as
strong as 1t ever was and there is no
two-thirds in Congress ready to upset
business by fantastic legislation.
Growth Is Predicted.
So, whether the next President is |
another Republican or another Demo |
crat. the answer to the fears of uncer- |
tailty must be sought in Congress |
and the mood of the country on radi- |
calism manifested itself last Autumn |
in the election of more conservatives |
than radica1s-that is why Govern |
ment officials, while expecting good |
deal of conversation about business |
regulation, do not expect anything |
really disturbing.
If business goes up or down, it will |
not be Washington, but other factors |
that will be responsible and, so far as
the officials here are concerned, they |
see a period of intense competition
but inevitable growth for American
business.
fCopyriEht. 1927