Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-17
PRESIDENT SOLVES
POLITICAL DILEMMA
Statement Putting Govern
ment Behind Business
Answer to Critics.
BY DAVID LAWRENCE.

BY DAVID LAWRENCE.
President Hoover has crossed the
Rubicon. HeSitant for many days to as
sumo any responsibility in the economic
situation of the country and besiegec
on all sides with requests that he make
a statement, the President has been
confronted with a problem Of practical
politics, which he finally solves in his
own way.
Capitol Hill has been bombarding the
administration with a charge that Re-
publican optimism inflated the hopes OF
the country during the Coolidge admin
istration. From metropolitan centers
have come the suggestion that Hoover
prestige was at stake. Some members
Of Congress have expressed a fear that
a depression would mean the loss Of the
House to the Republicans in the con-
gressional election Of 1880. President
Hoover's inclination was to keep out OF
the discussion, knowing full well that
no administration is really able to direct
the law of supply and demand or the
currents of the country.
Reflects Old Idea.
But, If the political world is to hold
the administration in power, responsible
anyway friends of the President sug-
gested that he might as we'll assume
the leadership and put the full force
Of governmental influence and authority
back of the business of the country.
The Presidents statement calling
conference of business, agricultural and
labor leaders reflects Hoover idea de-
veloped long before he was nominated
for the presidency. He has felt that
whenever business Jagged. the Federal
and city governments should do their
Dat ktaA Ia ant
now issued goes further than public
works. It is an effort to stimulate the
building of ships, railways and other
industrial facilities as we'll as possibly
storage and terminal facilities for agri-
culture Mr. Hoover bases his action on
the rapidly falling money rates. which
give the country abundant capital for
construction, something 1t has not had
for more than year owing to the d.
version of capital to the stock market
for speculation.
MY own experience has BEEN" says
Mr.. Hoover, that words are not of any
great importance in times of economic
disturbance. 1t is action that counts"
This sentence in the Presidents state
ment reflects the true Hoover, who
would, If he followed his own instinct,
have made no statement at all. His
observation that ANY lack of confidence
III
strength of business in the United
States is foolish" is a concession to
those who have been trying to get him
to say something that would restore
confidence.
The President was never impressed
with the idea that the stock market
crash necessarily meant any loss Of
confidence In the business and economic
situation Of the country. He has been
IaAr 49, a. kkaA rkA
ket decline because he did not wish to
be involved in the speculative vortex
itself.
With the Stock Exchange closed on
Saturday the White House statement
was not issued until all Friday trading
had ended throughout the country. 1t
has been insisted by those who have
been opposing any utterance on the
Presidents part that he should never
be in the position of influencing the
stock market one way or the other.
Declines Seen Since June.
Over the week end the words of the
President are expected on the other
hand. to have their effect on those bust
ness leaders who have been mistakenly
taking their cue from the stock market
decline. Ever since last June the official
data here has indicated that some bust
nesses would not make the gain they
did in the corresponding period of the
preceding year and that the falling of
in rate gain would be noticeable in the
Autumn. It is positively asserted in
quarters that ought to know that the
stock market instead Of being a
barometer appraising the future fire.
quently discovers a business readjuSt-
ment long after 1t has started That
Is one reason why many officials of the
80
data are emphatic In their assertion
that the stock market decline has no
relationship to the fundamentals of the
business situation and that the read
justment in business which began
earlier this year is proceeding normally
and that the outlook for substantial
record in 1929 as we'll as a stable sit
uation in 1880.
The American people have grown so
accustomed to seeing reports of gains
each year that the holding of previous
gain Is not always given full credit.
Comparisons are always made with the
highest previous record instead of the
average over a period of time.
Politically, there is much converse
ton. Republicans have usually claimed
credit for prosperous conditions. but
have not so often borne the brunt of
criticism in times Of depression. while
the DelnocIaCS on CHe otner nano, nave,
as a rule, been attacked whenever the
economic condition OF the country
showed any recession when they were
in power. This is one reason why the
Democrats In the Senate we're so quick
to criticize the Hoover administration
when the turn in the tide came fort
night ago. Backed by feeling that the
Democrats are going to hold the Re-
publicans responsible anyhow, the effort
to persuade Mr.. Hoover to get into the
situation forcefully and assume its
leadership finally prevailed. 1t was a
critical decision for the President and
means that he will do everything he
can now to bring about better under
standing of and confidence in business
conditions.
Copyright, 1921