Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-15
ECONOMIC BALANCE
HELD VITAL TO i. S.
Hoover Committee Believes
People Should Accept Prin-
CipIe of Equilibrium.

Although picturing the country as
enjoying an era of unprecedented
prosperity" with living standards at a
record high level, the Hoover committee
on recent economic changes in the
United States. in a report made public
today said its survey has brought to
light the Outstanding fact" that I'VE
cannot maintain our economic ad-
vantage or hope fully to realize on our
economic future. unless we consciously
accept the principle of equilibrium and
apply it skillfully in every economic re-
lation"
The committee Is part of the Presi-
dents conference on unemployment.
The committee was actively headed by
Herbert Hoover in the earlier stages of
its survey, which began in 1922, and 1t
is believed the President has closely
followed the compilation Of the COM
nnittee's report.
Great stress was laid on the i'm
portance of leadership. Informed
leadership" the committee said, lis
vital to the maintenance of equilibrium.
Through inceSsant observation and adj
justment of our economy, we can learn
TO maintain the economic balance"
Cites Waste of Resources.
The committee cited waste of natural
quantity from production to speculation
and artificial price advancement as
factors which would tend to destroy the
economic stability which it found to be
a chief factor in the national prosperity
evident in the period of 1922 TO 1929,
covered by the report.
Until recently" the report stated
1--WE have not diverted savings from pro-
objective business to speculation, and
have succeeded in maintaining a degree
of balance between the economic forces
which has enabled the intricate ma
clone of present-day America to pro-
dice and serve our people"
The report set forth the belief that
the people of this country are no longer
concerned solely with the primary
needs, food. clothing and shelter, and
by reaching out for such luXuries as au-
tomobileS, radios and washing machines
they have made possible the expansion
of new industries that provide employ
ment for thousands.
Newer Wants for New.
A situation apparently has been de-
veloped, the report said, where new
wants would make way for newer
wants as fast as they were satisfied
I'VE seem only to have touched the
fringe of our potentialitieS, it added.
of President Hoover, Postmaster Cen
eral Brown, Renick w. Dunlap, Assist
ant Secretary of Agriculture; President
Greene of the American Federation of
Labor, Julius Klein, Assistant Secretary
Of Commerce; John S. Lawrence Max
Mason, George McFadden, Adolph C..
Miller of the Federal Reserve Board,
Lewis E. Pierson, John j. Raskob. Arch
w. Shaw, Louis j. Taber, Daniel Will
lard, Clarence H. Woolley, Owen D.
Young and Edward E. Hunt, secretary
In a foreword to the report it was
explained that President Hoover had
been unable to participate in the latter
activities of the committee. Mr. Shaw
served as acting chairman. While Mr..
Hoover was in the South after his cleo
ton, however, a subcommittee called
upon him for a consultation.
The committee was aided in its re-
economists, StatiSticianS and SociologiStS,
under the direction of the National Bu-
Teau of Economic Research.
Asserting that the activities of in
VestorS and spectators had brought
about situation where a credit Strin-
gency resulted in an abnormally high
rate for call money and an appreciate
increase in the rate Of interest for bust
ness purposes, the committee added
IEdb imports Oh eOlQ early III the pSTlOO
covered by the survey which tended to
make credit easier; the growth of saw
ings in spite of increased spending; the
popular confidence in the financial
structure, especially in the Federal Re-
serve system, and the power of the sys-
TEN to move available credit to the
places where it is needed, mark a great
advance during these seven years.
The Pacific States were credited with
the greatest industrial development.