Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-16

resistfbly toward concentration. The
older competitive methods are now re-
garded as wrong - totally archaic.
Business 10 done in conventions, groups.
Institutes. Even the Government now
Submerges the individual and enforces
cooperation. Chain retail stores force
the older distributors to undertake CO.
operative buying and we face the pos
sibility of Nation wide concentration OF
the money power through holding COM
panies, bank stock corporations and the
like. The dislocation, unemployment
and turmoil of this great overturn &C
counts, In my Judgment, for as much OF
our present confusion as the stock mar
ket losses Of year ago.
Many causes have contributed to this
feverish era Of change-overpro
zion. destruction of buying power
through an unfair distribution OF in
come, the expectation Of capital TO build
industry In foreign countries, satura-
ton Of world markets and the urge 20
treat structures Of loan and bond issues
through imitation Of capital and credit
structures.
Theee conditions are recognized every
where. The remedy cannot be LETT to
tifae alone The question is what can
we do now to relieve the hazard ana
suffering of the emergency and TO re-
lieve anxiety and uncertainty for the
future.
I believe included in this category are:
First. The Wagner bills for the re-
lief Of unemployment.
Second Public works, inciuolng m
land waterways and public building
Third. Conservation and control Of
natural resources.
Fourth. Restriction Of the lurisdic-
ton Of courts Of equity In certain cases:
fifth. Prevention Of the imitation
and defiation of credit.
Sixth. A better balanced distripution
/ Of national income.
Seventh. The tarin.
| Control Of National Resources.
II Ia generally conceded that q con-
1Ekfuctive program Of legislation for the
lConserya&ion and better control OF our
Irrational resources of water power, OH,
firsfer and public lands must be en-
acted ii the near future. A legislative
remedy must also be found to protect
i the constitutional rights OF citizens
1 from ahrogation through the misuse
of the injunction power by courts O
eouity. But, this evening ] viii discuss
-
"a relieve us IN the present emergency.
A Federal building program mas
already been inaugurated with 9 gen.
i erai authorization OF $500, 900 900, ano
anDrouriations will undoubtedly be en-.
i larr6d 10 complete the program and
I'D in the relief Of unemployment
However, . primary problem TO which
a large constructive contribution can
Be made by Federal legislative enact.
ments Is the problem OF anVo, tnwsrS
that contribution are three in. number:
They have al been diligently explored
and expressed In proposed enactments
by Senator Wagner Of New YORK:
| The first IA that there should De
throuehout the country . genuinely
interconnected system OF permanent
employment finding public agencies,
municipal and State and Federal nelo
Federal leadership and by some CON.
siderable appropriations Of Federal
i The second Is that the Federal Gov
Eernnent should furnish to State gov
ernments and to local governments Q
4 compelling example In the accumula-
| ton Of 8 reservoir Of plans and OF
Il funds for the execution on large
scale Of public works, such as build.
ings and waterways and roads ano
harhor improvements and the ike, IN
hines of unemployment emergency.
The third is that the Federal Gov
lernment should blaze the way toward
Ia survey Of all the existing and
prospective possibilities in the direc-
lion Of the establishment, whether by
private effort or by public ehort or by
both Of o system Of scientifically cal
culated insurance against the miseries
Il
the losses caused to our business COM
Ynunity by unemployment crises.
TIN these three detectives have been
reached the Federal Government can
not be regarded as having fulfilled Its
legislative duty In the emergency now
existing.
| Credit Legislation Needed.
| believe that legislation can and
1 should be enacted TO prevent as far 81
possible the wrongful use Of credit. The
/ new theory Of economics that has been
expcunded in recent years based on the
theory that the way 70 become prosper
4 Gus "a To buy what you do not need and
/ may not be able to pay for "a . bad
theory and destructive in practice. II
promotes extravaganza and waste and
undermines character. Buying what we
need and can pay for u good economics
and good morals for the Nation Is well
Is for the individuals. Careful thinkers
have long felt that more careful hus-
banding Of credit IL paramount need.
ELuxlries should be bought out Of capi-
tai account and not with borrowed capi-
tai. The extension Of credit for specu-
iation when speculation assumes the
proportions Of pure gambling Is wrong
ful use Of credit and a legislative remedy
i must be found 10 curb this practice.
such q remedy should aid In preventing
periodical cycles Of imitation and defia-
ton of the credit structures with result.
ing disastrous fluctuations OF prices.
II believe that legislation now In force
"a In part responsible for the nalad-
justment Of the distribution OF the ma
tional income. Readjustment Is i'm
perativeiy necessary.
The theory has been advanced that
business and agriculture are suffering
from overproduction. This in my opin-
ion IL only true in Q limited degree
Imitation Of credit always stimulates
production. The invention and use Of
new machinery has also stimulated pro-
duction, but on the other hand, I BE-
lieve we are suffering from under
q consumption or o lack Of ability To
buy the goods produced because Of the
unequal distribution Of income. Gov
ernnent statistics reveal that from 1915
to 1875 the total value Of farm crops
II dropped over ~ per cent. venture
to say that there has been no substan-
!, tiAl Improvement IN the economic situa-
ltion Of our farmers since these reports
were published.
Labor Fit res show Drop.
Aceorclng % e s.atlsLlcal tenls . q