Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-11-10
OPTIMISM MARKS
VIEWS ON BUSINESS
Hope Is Expressed in Analysis
of Conditions in
Future.
BY DIR. MAX WINKLER.

than 100000 American men and
women have decided to change their
Chief Executive, hoping that with such
change will come decided turn for the
better in their economic status.
Four years ago, the Nation enjoyed
unparalleled prosperity. The buoget
showed a genuine surplus. Trade was
expanding The reserve ratio was rising
Stocks were recording new highs every
day Banks sprang up like mushrooms
in the Spring, for like worms after
rain.
There was no unemployment to speak
Of Foreign nations were paying their
debts-mostly with borrowed money
The people were exhorted not to change,
in order to remain prosperous. They
needed the call. But depression came
and the people we're urged to change.
They listened once again. They have
changed
Policies Of President Elect.
In order to appreciate the present eco
nomic status of the United States, and
the likelihood of an early change in
conditions, it might be Of interest to re-
view briefly the vital questions in the
Nations economic life and the attitude
towards them on the part OF the incom-
ing party and its spokesman, President
elect Roosevelt
With a governmental deficit running
into billions, it is apparent that the
principal aim of the new administration
will be to effect drastic economies. In
one of his campaign talks. the Presl-
dent-elect specifically stated that say
ings can properly be made to total many
hundreds of millions OF dollars year"
OF total expenditures of S4,ll3,000,-
900 about IS per cent is absorbed BY
service charges on public debt and
other expenditures of a more or less
fixed nature, which cannot be reduced.
Veterans relief is scheduled to absorb
about "a per cent, or 1888 100000, while
expenditure in connection with the
maintenance of the Army and Navy is
fixed at $685. 100000. There is no state
ment from the President-elect that any
Of these items will be cut down. Nor
will it be possible markedly to reduce
running expenses of the Government,
placed at s600,000,000.
Difficulties Presented.
In other words, as regards the much
talked-of economy the task presents
many difficulties How soon the Gov
eminent will begin to benefit from the
promised modification of the Volstead
act is hard to state. Moreover, should
the present unemployment situation
show no appreciable improvement and
should private or local relief prove in
adequate, the incoming party is on rec
ord as advocating Federal aid to relieve
the distress among men and women out
of work
In addition, there is a possibility re-
mote, to be sure. that some of the fiscal
mo n Aafn tod IN
the last session of Congress will come
to life again. Chief among these is the
one sponsored by and bearing the name
Of the Vice President-elect, Garner.
providing for the appropriation of ST.
290,000,000 for public works. On the ais
votes cast in favor of the bill, 1874, or
more than 80 per cent, were Democratic
Another interesting bill proposed dur
ing the last session was the Colds
borough bill. designed to instruct the
Federal Reserve Board to raise the level
of commodity prices. OF 288 votes cast
in favor of the bill over 81 per cent
were Democratic: while for the bonus
bill providing for the issuance of So
400 100000 in new currency, to redeem
outstanding certificates at face value,
l52 Democratic votes, or well over 70
per cent of all the votes cast, were in
favor of the measure.
Tariff Issue.
Considerable benefits are expected to
be derived from more rational tariff
policy, which the incoming administra-
ton has promised. One need not look
for revolutionary or immediate changes.
1t is possible that more concrete meas
ureS will be adopted at the forthcoming
international conference, which the
President-elect has been advocating.
The United States was among the
first to raise high tariff walls and in
troduce rigidly protective measures,
naively believing that other countries
would yield without protest. A veritable
commercial war started, nations vying
with one another in erecting barriers
Trade and industry became paralyzed
Commerce was at Standstill
Just as America led the way in levy
ing high duties, she may once more as
sumo leadership in downward revision
of tariffs, thereby contributing toward
resumption of free flow Of trade, so
essential to the economic recovery Of
nations. A revision of the so-called
war debts on the basis Of existing con-
ditions In the respective debtor coun-
tries also may prove constructive.
The much-harassed farmer was amply
remembered In campaign speeches.
Every one desired to come to his aid.
The incoming party is on record as
| favoring cooperative marketing, better
financing Of farm mortgages and con-
troll Of crop SURPRISES But this Is too
intangible as yet to warrant the belief
that the farmers problem is solved or
on the verge or solution.
Railroad Program.
The railroad consolidation program
inaugurated by the Hoover adninistra-
| ton will be carried out. or Is expected
to be carried out, by the incoming