Evening star., 1932-07-25
u. s. SEEN MOVING
. OUT OF DEPRESSION
Emergency Measures Be.
lieveC Big Factor in Slow
Turn for Better.
BY MARK SULLIVAN.

ing to do with business constitutes a
new and presumably recuperative phase
of the cycle. While no person having
the faintest prudence is willing to say
anything in this field which has the
nature of prediction. it is a fact that
several recent developments constitute
an advance over recent conditions.
The emergency measures for recovery
now in operation since President Hoover
signed the home loan bank BILL" con-
stitute substantial fulfillment of a pro-
gram made out some months ago. The
program as originally conceived was a
com !ete program. in that it was made
out with careful thought and considera-
ton. As planned 1t was believed to in
clude everything necessary, not tc
achieve recovery through itself, but tC
remove all impediments to recovery by
the country and otherwise to facilitate
the process.
1t is true that Congress did not fully
enact the program. The failure of Con-
gress, however, did not consist in
emitting any fundamental part of the
program, but rather In not making
some of the steps as complete as was
requested. Nevertheless, the program
Is regarded as substantially enacted.
Veterans Bureau Factor.
The principal falling short of Con-
gress was in the field of economy. The
President asked for some drastic cuts
in Government expenditure. Congress
made a smaller but nevertheless ma
dol attt Cnf nt,aitf n
recommend further cuts. 1t is fair to
assume that Congress, sitting next
December, with the elections over, will
for reduced Government expenditure
One field in which reduction Is impera-
tive is the Veterans Bureau. and both
parties at their recent conventions
pledged themselves in their platforms
to make restrictions In this area.
The matter of reduced cost OF gov
ernment Is important for particular
reason. The comparatively small mum,
Der of business leaders or persons hav'
ing weight in the world of economic
thought who are still a little skeptica
about business recovery base theil
doubts mainly on the need OF further
reducing cost of government, Federal
State and local, as prerequisite to {
genuine and prolonged new period o.
prosperity Even these persons admit
that the other steps taken by Congress
including the Reconstruction Finance
Corporation. the home loan banking
bill and other institutions. have th'
effect of adequate defense against fur.
ther lapse into depression.
Now Up to Citizens.
An overwhelming majority OF thl
most worthwhile thought goes further
and believes that the conditions have
been made right, so far as Government
can do so, for the beginning of business
expansion and reasonably rising price
of commodities and securities. tn,
most minute survey of the world, BY
persons made vigilant by the blow
which struck US from Germany, Grea'
Britain and South America q year ago
does not reveal any possible further
blow from outside cur own borders. Or
the contrary the belief is that IN those
countries and throughout the world. a,
IN America the ground has beer
cleared for better conditions.
the Government program for recov'
cry in America has followed orthodo,
conservative lines. There are person!
who have insisted that recovery coulc
only be achieved by revolutionary steps
One method much pressed was imitation
OF the currency. This has not beer
done. Every one Of the roughly 9
score OF measures enacted by Congress.
has had the support and in many
cases the sponsorship Of Senator Car.
ter Glass Of Virginia, who would ne
more countenance fiat currency thar
poison!
1t is true that a rider initiated BY
Senators Borah on the home loan bank
bill provides for a maximum of Just un.
der billion dollars of new currency
based on Government bonds. That
would be an addition of about one-fifth
TO the currency outstanding. 1t would
be no more than equal to the amour,
that went into boarding some months
ago. Senator Glass and the other con-
servatlveS in Congress did not consent
to this until they had satisfied them.
selves that in operation 1t would moi
cause any net increase in currency anc
that its operation Is limited to three
years.
Credit Also Expanded.
A very different thing from currency
expansion, mainly credit expansion
having the same curative effect on bust.
ness and prices as currency expansion
Is frankly encouraged by the measure.
taken by Congress. Forces for expan-
sion OF credit, initiated by the Fedora
Reserve System and other Government
agencies, are in active operation every
day.
Even more important are the step.
being taken by private business MOI
only for expansion Of credit in USE but
for recovery along many carefully
thought out lines. The steps taken ir
business, while greater in the aggregate
than anything done by the government
are comparatively unnoticed. The sum
of all has created the conviction in
sources hitherto skeptical that the coun.
try is slowly on its way upward.
(Copyrisht, 1921