Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-23
ATTERBURY CITES
SINS OF BUSINESS
Railroad Executive Lists 7
Cardinal Wrongs in
American Situation.
BY JOHN F. SINCLAIR.

Is big business in the United State:
waking up to realities? 1t is, if TIT
statement of w. w. Atterbury. presi
dent of the Pennsylvania Railroad, i
indicative OF its attitude.
Maldistribution of gold, war debts
tariffs, installment buying, Nationa
debt reduction, high taxation and Fed
eral antitrust laws are the seven cardi-
nal sins of American business today
according to Gen. Atterbury. 1t is ar
excellent list
War debts are a caricature of eco
nomic principles. They are of political
origin, based on war destruction, in
stead of construction. Still dizzy from
war finance the world has gotten away
from the fact that all debts ult mately
must be paid in goods or gold. Nc
fancy finance can hurdle that truth.
1t is easy to see how tariffs have
knocked the props out from under
world trade. They are choking off the
exchange of goods, and are eating away
a credit structure already paralyzed by
the flow of gold in one direction. The
United States. as Gen. Atterbury points
out. has a surplus of both goods and
gold and can dispose of neither.
Installment buying during the new
era" was going to clCthe all Americans
in purple and fine linen and put the
business man in clover Instead, 1t has
sent some men to the bread line and
set the business man to guessing about
his future.
Slower reduction of the national debt
would probably help business in the
United States Just now. but ii is diff
cult to see how American taxes will
come down in the future if the Gov
eminent is forced to finance social obli-
cations no one else seems. Willing to
assume Similarly, the Government
may liberalize the antitrust laws. but
in so doing it will exert even closer
supervision.
William g. Ripley, professor of politi-
cal economy al Harvard. does not agree
with all of Gen Atterbury'S statements.
Mr.. Rtpley contends that what the
railroads need from the Government is
not Jess but more supervision. In fact.
he advocates the creation of a new
cabinet poSt-a Secretary Of Transport
tation. This secretary would take over
the jurisdiction and powers of the eX-
listing Interstate Commerce Commission.
This official would have just the
prestige and authority to enforce the
discipline on that industry which it
so much needs" Prof. Ripley says in
explanation.
The professor also points out a weak
spot in the railroad situation when he
says that 4 instead Of 80 systems would
simplify the technical and financial
problem. It would also enable easier
control and inspection of their opera
ton by the Government.
Montagu Norman, the uncommuni-
cative head of the Bank of England,
IN "a If RI
proposed international credit bank.
Just how far he is likely to get would
be unwise TO predict just now, but the
European set-up at present will net
help.
It is felt that France opposes such
a bank for the same reason that she
opposes political groups outside Of the
League of Nations. In the Bank for
International Settlements she seems
able to control its policy in the same
manner that she usually gets her way
in the League.
The new bank proposed by the gov
ernor of the Bank of England would
not only limit the influence of the
Bank for International Settlements, but
it would prevent French domination,
especially if the United States decided
to join in the new movement.
Meantime matters do not improve
man union endures. Poland, Rumania
and Jugoslavia are dissatisfied with
the French arrangement for AN agri-
cultural-manufacture swap" and Ger
many is gobbling all the Russian trade
she can safely digest, with England
and Italy doing the same. French ex-
ports have dwindled very greatly in
the last year.
All in all, French business is feeling
l. III
including their own government.
Where does government begin and
business end? How much business
should there be in government, and
the other way around? Can business
and government be separated-can they
work together?
DR.. o. c. Kiep, German consul gen.
eral in New York thinks that business
and government should and can work
together, and so solve the other prob
lens. From his viewpoint, recently
mace public, the Government would
take the lead and guide business, but
not fstter II. "Co-operation instead OF
compulsion and coordination instead
Of coercion" is his suggestion.
No one can deny that business needs
government regulation and control. The
rsader would only have 10 imagine all
such present restrictions on business
TerGoged 70 imagine the chaos resulting.
Is Or. Kisp points out, modern bus
t-.sas = International and needs gov
srr.aaag4. assistance. There are political
iEsz.s and Customs ~ different peoples
tSzs nn.st b@ respected. Governments
s<s ez1lr.entlT suited ~ that task, while
G-s.ssg.sss = MT
Here tsen a. yell a. at home the
tus sYsteHls must org nize a world wide
IzEssra. eg3A.!zs supply and demand,
nkEfY Eay.Gs and make the gears Of
!gteYE.zlioE.al friendship mesh.
Eeg Jergey has Joined Is other states
3n passing an old-agc pension bill This
assures the needy citizens Of New Jer-
sey past 10 years Of 81 day. The vote
for it was unanimous.
This is one form Of social legislation
that is destined to become Nation-Wid
II does small honor to q powerful ma
tlCn when 1t permits its old and poor
citizens to be cast adrift with less at
tention than they might receive in a
primitive tribe. The IS States that
have already begun 10 wash away this
stigma have not made very extensive
or liberal provisions, but many think
they are travelling in the right direc-
ton.
In many European countries. particu-
larry Germany, JNLS responsibility mas
long been recognized ana accepted. In
the clCsely-knit pattern of modern in
dustrial and economic life, elementary
duties Of this kind are shifted from tho
individual 10 the State. American
States have been slow 10 admit thi:
responsibility.
In any event, it is interesting to SCI
the State governments hcnoring The
past services Of its citizens t. the com
munity as many business organization
reward their veteran employees.
Secretary Mellon has just issued an
other batch of 9O-day Treasury note
for $4,000 900 TO meet the pressure o
loans on the veterans bonuses. This
of course, takes no one by surprise, a
the bonus loans have been driving int