Evening star., 1928-06-12
VIEWS PARTY ACHIEVEMENTS
AND PROBLEMS WITHIN u S
Stresses Sterilization to Insure Normal
Increase and Employment, Avoiding
Business Depression.


tion today:
The primary function of the ad-
minlStration Of affairs of government
is 10 keep open the channels Of oppor-
tunity for the fullest play Of the pro-
ductive energies of the citizen. in the
promotion of the general welfare
The major problem of industry is
low cost of production of high-grade
goods. manufactured by well paid labor,
and sold at profit. This formula is
the foundation principle OF great buy
ing power, the real test of genuine pros
perity.
The second problem is that stabil-
ttJ which insureS normal increase and
steady employment TO avoid the occur
renee and consequent suffering of the
cycle in business. The operation of
this dctum requires an organization of
the economic forces of industry. and
the cooperation OF the producers to
hold production within the limits of
consumption. The success of this prin-
ciple is one of the most important
movements in modern times
The third problem is to eliminate all
unnecessary waste in production. as
well as IN processing, and in diStribu-
ton. This recent effort among in
Gustrial leaders is one Of the newest
modern industry.
THE fourth problem is to secure the
maximum utilization of all resources
facilities, machinery and agencies en-
ployed in commerce.
Read!ustmentS Difficult.
"The dislocations of the foregoing
principles, due TO war, were most Sc
riouS. and economic readjustments most
- l.
taken over by the Government with
frightful loss to private initiative and
responsibility Industry was generally
paralyZed and labor out OF employment.
Liquidation of wartime contracts SuS-
pended operations and rendered peace
time recovery most serious. Banking
became below par Markets were lost
and trade deranged. Hundreds OF
thousands Of farmers experienced the
inability to meet the interest on high
priced land with low-priced farm
products. They suffered heavy freight
charges by railroads seriously crippled
by Government operation and from
lack OF capital for needed improve
nents.
This business arrangement extended
20 al the basic industries of the coun-
ty-to agriculture, through destructive
imitation, followed By too sudden de-
Hation. Markets weres lost and mort
cages 1oreclosed. Transportation,
through Government operation. was
eurdened by padded pay rolls and ma
Honal agreements forced upon it; econ
onteS were ignored. properties de-
Perforated, financing crippled, and nec-
eSsary Improvements suspended. Manu-
featuring faced abnormal costs in raw
material, oyerstocked inventories from
war expansion and rapidly falling
prices with the return OF peace, to be
further aggravated by labor troubles
Many manufacturers were confronted
with financial structure which pre-
vented the rebuilding Of obsolete plants
and the installation OF new equipment.
Mining IN many cases was oyer-ex-
panded, and experienced serious dim
mutton Of consumption, followed by
sharp breaks in prices, due TO uncer-
1alnty OF inventories and iHpoSgibility
OF forecasting the future. resulting in
many cases in complete closing down,
and N ali cases a slowing down.
Building construction was al stand
still largely for want Of credit. absorbed
BY Government financing. Capital and
labor assumed antagonlstic rather than
cooperative attitudes Bitterness was
engendered and industrial war was
imminent with inevitable suffering
among all classes Capital went into
hiding: enterprise discontinued, labor
vent out Of employment, and a crisis
was at hand
In such confusion, ready-made rem
edies were forthcoming. One Of the
first 20 be suggested III some quarters
sSld demanded In others was Govern
fneut control Of price Levels. unempIoy-
nent allowances or government doles
were urged ag q stimulus TO industry By
an alleged increase OF buying power OF
the people. Elaborate programs Of pub
lic improvement. by Government ex-
pencatuEf, extending 70 gubgicsze house
D'lAding, wss urged a. a proper stimu-
lus. Proposals were made To lower
freight rates without reducing the cost
Of operation, and require the public %
pay ff1e bills Ly Government subsidy.
II was freely alleged that desperate sit.
LAt1ofiS called for desperate measures.
Turn 70 Republican Party.
Confronted by this situation, the
people turned 10 the Republican party
Tor leadership Snd by antoyerw wheiHning
majority commissioned the party 10 un-
Geftske tiaf TASK. The mansaeg in which
thai commission has been respected ig
faiFlg Wei known. LIT the record speak
tor Itself a. ~ tne wisdom of the course
pursued and tSle success VI It's accom-
pslgan9enfs
After me return " peace and the
dISB7SDsllag II the sAr machine the
problems we're new Adjustments, both
financial and ec01zDlfltc. Imminent and
compelling Vas C13F fiscal situation due
~ an orgy Of sKtF&gagAnGe in eZpendi~
tire incident ~ tf3e c0nyuiElou of var.
~ slen tin3ES 9ga0d financing Is aban~
fD13Go. fundamentals IN industry are
E4DE0Ctec. and economic principles are
gaSss ~ liz
f. public debt II Jess than vi 900 000, =
900 mounted ~ Oger E2g. 900 900 900
An annual interest ~ less Than $40,
~, 800 reached beyGgsG q thousand nil
sOn. m annual expenditure for G0y-
ssFsFgleDt operation NJ leas tnau q billion
TszeaeG 3 sun ;n ezceas ~ ss,g90 900, =
1stg, WITH q Staggering burden " faxa-
f3o9 H5iB #5seh ~ are etli G,rQggIlng
at3d must continue ~ struggle for years
tioF3g 81 T.NaF4g fBe billions q yfaF lifted
fFgg9 me tazpaYef
@4Ilse mo9t g.fQeGlt and immediate
financial pfDg5eM Waz ~ CtaFTa tGh
war financing w!45Hfl had zDagrjyed thf
}lQ5ic assets III Size fAcAi agsl8cleE. KQaGe
banking ojfIcfit, Starved INDUSTRY for
Bant ~ e&gAtai. DafaiyHe1 business egl.
terpgtE<., foseea lai<Jf out Ofl t9f Elfeetg
ard g3D94eeG 81 {lnfYDDsDyfuent DY0iy
lem ifl2t Was nan ~ 1esl ouf govern,
mental jgelil1siDns The bzuka had Deeu
eSiie1 upon ~ cafFy Dltae bilbyn O0y,
eminent DfJ3}gH{2gD& II! 4ufoauaeG I'll
1aatiglg csDI c4e p5s demand Cilr vic,
12fy Dsytes j0 fzees& II N 900 Ol9 O0t
ReFe dur MAJ l3z5 our nfedA ~
fJoRcfBment Nae sDfely inpaHed Lii
eT1Y gCncS nae cepffr1atsa ~ tpe iGy
gglgt ~ ~ ~ ~ PER cAut discount
C4fTeH9 ezDenGltafes Had ~ ge nst
enc we're 9ieFItagiy 9izH Tan bsfdeH
wsge elslsbaaeBIy heagys feyeDlp
fsog5ffsl!. 0egetlGehi upon DFoyiefou
Gsgnctt3oss, Wli}tH N0ff impossible Hlti
syadH4gyy paFalyHee Qbagle " sec3n
capital a6agI7ye NJ GgFefnmeA