Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-17
BY WILLIAM HARD.

The interest OF the administration in
the effect of what he Deen happening
in the stock m" =. is now centered in
the efforts may be put forth by
our leacl, american industrialists to
give a bold example to the country of
q strenuous resumption OF the ordinary
business Of the production and distribu-
ton of commodities. It is to the making
and selling and consuming of commodi-
ties, rather than to the pricing of Sc
Qlrities, that the administration feels
$certain general national responsibility.
The President has been put under
great pressure to take q hand in the
immediate stock market situation. Vo-
LUMINOSITY he has been urged by fright
ened speculative interests to do some
thing or to SAY something" which
would have a "steadying" effect upon
security quotations. Usually the sug-
gether vague. Sometimes they have been
entirely specific. In all cases, however,
they came to this: That the President,
somehow or other, was TO intervene in
the prices Of stocks.
The President has resolutely refused
to undertake any such interventions.
Price fixing, whether OF securities or of
commodities, is not among the Presi-
dents favorite policies. In fact, it is
policy from which he. as much as pos
sible, recoilS. 1t is wholly alien to his
political philosophy that the Govern
ment should tell the country at what
levels OF prices it should make its pur-
chases either OF steel and brick and
glass or OF stocks and bonds 1t is the
view Of the administration that in such
matters the composite Judgment Of the
country is much better and much safer
than the Judgment of any governmental
individual or OI any governmental board.
The President has, therefore, refrain
ed absolutely from affecting to know
the point at which the present ''liquida-
ton" in the stock market should cease
He has refrained from affecting to know
the true and proper values" Of the Sc
curities in which the buyers and sellers
In the stock market are trading. Any
word from him would have been taken
as a sort Of guaranteed Tip" in either
publish" or "bearish" direction. It
would have given the market a certain
turn. Traders who lost money on that
turn would thereupon have blamed their
losses on the President. It has not SEEM
ed to the administration TO be either APP
propriate or judicious for, the White
House to confer winnings or to inflict
losings upon any stock market faction.
The White House nevertheless and
also the Treasury Department and the
Federal Reserve Board have watched
developments in the stock market with
the greatest vigilance and with the
greatest closeness. The ultimate aim
OF this watching has been to preserve
intact, so far as might be possible, the
ordinary business energy and the ordi-
nary business confidence of the coun-
tryS business community.
It cannot be stated too strongly that
the Presidents faith in the immediate
as well as In the ultimate industrial
and commercial future of the country
is every whit as strong inwardly as 1t
outWardly seems to be In his state
mentS to the press. The President con-
siders that in suggesting and accept
ing the prospect of q reduction in the
income tax rates at this time he has
abundantly proved the existence OF
that faith within him. OF all things
dreaded by any President, the greatest
and worst is Treasury deficit. II
ordinary business Is now to lag and
falter the proposed tax reduction will
produce a deficit. The President is
betting, as It were, that there will not
be q deficit. He is betting, in other
words, that business will not lag and
falter, but will actively go forward.
OpOU JLldG UCllCl 10 WdkCLulB
reputation of his administration and its
fiscal success He feels that he could
give no evidence more complete Of his
willingness to do his fair share in the
work of seeing to it that the business
years Immediately ahead of us shall
be good
He and his business advisers thor
oughly realize, Just the same, that the
task of making those years good is a
positive one, requiring not only happy
prophecies but earnest deeds. They do
not all entertain, it is believed. the
shallow view that the abrupt decline
in stock quotations will be wholly with
out any effect upon industry and
commerce.
A certain considerable, though not
critical or crucial, effect upon them
Is already diScerned here and is
known to have been painstakingly de-
bated among members of the Federal
Reserve Board Numerous business
men of secondary but substantial bust
ness rank have been so seriously in
jured in their personal fortunes that
sometimes the fortunes OF their indus
trial or commercial businesses have
been involved. Many of them. further,
though not at all really ruined IN
estate, have been shaken in morale.
Purchases thereupon of certain COM
modities have been imperiled. A
tremor has been set up, in some quar-
tiers, of distress and doubt and the
one true instant danger, in the n1idsS
az an Ilnahated general business sound