Evening star., 1932-05-01
BY MARK SULLIVAN.

pression-especially politics. De-
IL pending on whether it continues
or is meaSurably improved, it
will determine the election in November
Tell me what the price of wheat will be
during the first or second week of Oc-
tober-which is the time public senti-
ment gets "Set"-and I will venture a
prediction as to which party will win
the presidential election on November 8.
That outcome will not necessarily be
logical, but it is commonly the way
elections are determined in times such
as this.
The depression is determining also
the only one of the two party nominal
tions for the presidency as TO which
there is any doubt. 1t is mainly be-
cause of the depression that the Demo-
cratic nomination has been going to-
ward candidate, Gov. Franklin Roose-
velt of New Yon, whose appeal to the
electorate is tinsal by 2 color that ex-
Gov. Smith cars ~6enagogic." In
normal times it would be unthinkable
that a Governor of New York State
should make his principal appeal to,
or have the practically universal sup
port that Gov. Roosevelt has, In the
area of discomfort, practically the en-
tire territory west Of the Mississippi.
Here Is Governor of New York seek
ing both the nomination and the cleo
ton through the support, primarily, Of
the West and the South. He is wet.
Does any one need more evidence that
the depression is above prohibition as
an issue in this election? The truth
Is. there is no other issue. In reality,
Of course, the depression is not polit-
ical issue. Neither party wants the de-
preston. Nobody would vote for a
party which would avow that 1t liked
the depression. There Is no certainty
decidedly none-that one party will
end the depression more surely than
the other. The depression, in short, is
not an issue at all; it is a condition, but
it will determine the election. If it
continues fully. if there is no sign Of
beginning relief between now and Oc-
itself in turning the ''ins" out.
The Principal Issue-Money.
In national politics, one result of the
depression is a demand for cheaper
money" From some quarters, the de-
mand Is for what the orthodox de-
nounce as rag money" that is, money
not based at all or not based sufficiently
on gold. From other quarters the de-
mand is for more money of a sound
kind, for an increase in the quantity
The Federal Reserve System is just now
very intelligently trying to bring about
an increase in credit money. This
effort sNould have the intended result.
The at empt Is being made in highly
intelligent way, and after waiting for
conditions which give promise of sue
cess. The course now being taken has
worked before under similar conditions
The demand for more money of some
kind is very strong and wholly legid-
mate. More money is needed to make
prices of goods higher, and only by an
increase in prices of goods can debts
be paid. Mortgages contracted by
farmers in 1929 and before, on the
basis of conditions then existing,
literally cannot be paid, either prin-
cipal or interest, at time when prices
are what they now are. A mortgage
contracted on the basis Of wheat at a
dollar or more bushel, and valuation
of land in accordance with that, cannot
be paid with 60-cent wheat. The
thing is mathematically impossible.
There must be either widespread de-
fault and diSpossesSion. or else an in
crease in the price of wheat and other
commodities. One way to achieve
higher prices-the way that occurs to
everybody at a time like this, and a
way that is entirely sound if done by
sound means-iS to increase the guam
tity of money.
If the attempt to bring about more
money in a sound way, by increase of
credit-money, should by any chance
fail then inevitably We shall have, in
the party conventions and in Congress.
growing demand for more money Of an
unsound sort-any sort. More money,
cheaper money. is the only way to re-
lieve the debtor, and the debtor is
going to insist on relief.
survey of the country, especially
the Midwest, reveals preponderant in
terest IN two subjects; that something
be done to increase the quantity of
money, and that taxes be reduced,
especially State, county and township
taxes.
This latter part of the demand is
absolutely certain to succeed. 1t is
thing the voters have in their own
hands. The movement will have local
political effects. 1t will take the form
of turning the ''ins" out, whether the
local "ins" be Republicans or Demo-
Gratis.
1t is demand for lower cost of gov
ernment. To those taxpayers who de-
mand this because they are obliged to
pay the bill are added now another
large class. Local government Jobs
have come to be envied. They are, for
the first time in 80 years, more de-
sirable than jobs in private business.
Jobs in the Government have perma-
nence, and the salaries paid, while
seemingly small in normal times. are
now large, due to the change in the
value of the dollar.
Consequently, to the demands of the
taxpayer for lowered cost Of govern
ment will be added desire for the Jobs
which those now in Office have The
sum Of both, and of all the conditions.
is going to make this a dreadful year
for the local ''ins" everywhere. what
ever party they belong to unless prices
begin to rise, and the depression be-
gins to lift, before october.
Fundamentally Conservative.
If we look closely at the two current
political movements, demand for cheaper
money and demand for lower taxes, we
find they spring from a common senti-
ment They represent the self-assertion
of the middle class. They reflect deter
mination on the part of the farm owner
and the home owner to keep what he
has. He wants cheaper money in order
that he may pay off his mortgage in
dollars of the same size that he bor-
rowed. He wants this because he is
determined that his home shall not be
taken from him by the mortgage. Simi-
larly he wants lower taxes because he
is determined that his home shall not
be taken from him by the State.
This is distinctly movement away
from State ownership, away from the
ideal of Socialism or of Russian Com
munism. 1t Is movement back toward
American individualiSm in its earliest
and strongest form. 1t goes in the
direction of a civilization based, as
Americas always has been, on indi-
vidual ownership of the farm and the
home.
1t is true, some of the protests against
present conditions take a form which
goes in the direction of surrendering
everything to the State and expecting
the State to be at all times responsible |
for food and living. There is very
little of this however Some of ii is |