Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-28

penditureS for needd public construction
and offered the cooperation OF the
Federal Government to that end.
TO provide fer co-ordins ton OF these
efforts, and to expedite construction OF
all public works, the Division Of Public
Construction was established in the De-
partnent of Commerce. The Federal
Government i'5elf set On example by
irstitutirg a larger building program
than hid err b fore been undertaken
by this or any other country in peace
time. The combined total of public
works-nationai, State and local-and
of capital expenditures by public utili-
ties hes exceeded $1,000, 00o,00 Per year
in 1850 end 1881.
Early last Fall when 1t became ap-
parent that unemployment was becom-
ing a serious problem, the President
appointed an Emergency Committee for
Emp oyment, under the able chair
manship OF Col. Arthur Woods. This
elso was domiciled in the Department
Of Commerce. Our branch Offices
throughout the country constantly
sided the committee and its regional
as well as with regular reports on local
conditions affecting employment and
relief.
Another important step in the direc-
TIN Of business stability has been taken
in the establishment of the Employment
Sterilization Board. whose function is
ito arrange the construction of public
works so far as practicable in such a
manner as will assist in the stabilizatiop
of industry and emp oyment through
the proper timing Of such construction. T"
Declines Are Recorded.
The staff work of this board. which is
composed o. the Secretaries of the
Treasury, Agriculture, Labor end Gem
T. cree. is 10 be carried on in the Depart
mort of Commerce, where the Division
Of Pubic Con truct!on is already famil-
lar with many of the prcbl ans to be en-
count-rsd and the methods to be pur-
sued in working toward the long-range
control of public works, b-th in the
FEDERAL Government and in the other
governmental units.
For many months now the Depart
ment of Commerce has had to record
almost continuous dec ines in those fac
tors which. when showing increases,
make for profits and prosperity. At
the same time II has had TO record the
unavoidable consequences of these de-
clinss in increasing unemployment,
The dark shadow of hard times" has
HuuS uCdNDy ONCi li1C OON1AbA y
and the entire world.
In the earlier months there was much
discussion and little agreement as to
causes; then csme many suggestions as
to wavs and means of lifting ourselves
out of our difficulties. Many of these
were of "boot-strap" variety. involving
large expenditures Of Government
rnorey with cons quent increases in
taxes, and others were wholly imprac-
ticab,e. For the most part those prof.
ects which were in fact capable of re-
lieving the situation we're promptly put
into operation by Government or pri-
vate initiative. More recently there
have come to us many plans for abolish
ing hard times altogether. Business
mn have been blamed, and charged
with lack Of foresight and leadership.
TIE soundness of our economic system
has been questioned It hos even been
surg "sted that another such depression
would destroy our civilization. These
are extreme visws--the out7rowth of
many months of depreesion-tley are
characteristic OF the present stage Of
all Expressions.
Similar extreme views have cropped
up in every depression. But these dire
predictions have always been belied by
actual events. From each trough in
duetrv and ccmmerc and thu general
we l-being OF the peoole have risen TO a
higher crest than ever before Never
the'ess. there Is no DENYING the fact
that although much progress has been
made in methods of relieving hardships
during depressions W. have not sue
cecd"1 in prevent'ng them or in max
ing them shollower and shorter AS we
hec"p-e poe nd nco-e of IN injustr al
ro'i~n, with Sc per cent Of cur peoTle
living in cities. a hrsin~ss donression
hrj7rs greater difficulties than when the
great majority lived on farms.
Matter Of Balance.
II is often said that we have Just as
n1anv peopIe. lust as much money. lust
ss manv plants srd machines. and lust
as many acres Of form Ind as we had
in 1929; end IT. is difficult for people to
understand whv. in country which
hes surplus Of food shelter end all
IF the nther things that We need mil
lions should be- without employment.
Tire truth is that the difference be-
tween good times and bed times is
Sirnly Cne of balance. In good times
95 tn 90 per cent Of the people who
usually work are working: there Is a
market for the things they are pro-
ducing: there Is a balance between
production end consumption. That
balanced condition, which is necessary
to maintain prosperous conditions. has
ccme about through FORMAL operations
cf economic forces. It has not been MAN.
eyed in env wav by Government or in
dustrv itself, There is no organization Of
authority within the Government or
INDUSTRY to so manage or control the
production and consumption of goods.
This is free country ANY one can
go into anv business and conduct 1t any
way he p,eases within the law. Under
this fr7e system, this country has de-
veloDed to degree never before
eoualed in the history Of the world.
In spite Of ups and downs, the gen.
eral trend of industrial activity has
been rapidly upward, end the con-
stantly increasing demands of a higher
living standard have absorbed the prod
u"ts Of constantly increasing capacity
of our economic system. The result
Is that every business executive wants
his month"; statement to be better than
the preceding month-and better than
the corresponding month for the pre-
vious year. We are constantly ex-
pand.ng productive capacity, putting on
more statesmen tn dispose of larger pro-
duction. and cutting prices, If necessary,
to take business from competitor
The same process goes on in the real
estate and building industry. We turn
too nanv farms into subdivisions, tie
ID the vast sums in streets. sidewalks,
sewers. water and gas mains, far in
Advance Of actual needs.
We overbuild apartments, hotels and
ONCE BUILDINGS. industrial plants and
CONTINENT. often on a highly speaula-
tive basis AMI at too high costs Ti'en
comes the inevitable crash and de-
preston.
We have been going through these
cycles for more than 100 years. From
something Manv Of the earlier ones
were brought on by financial and mon
etarv panics. After the depression Of
the eos We learned the advantage Of a