Evening star., 1932-03-16
BARNES PRAISES
STABILITY OF i. s.
Trade Board Hears Business
Leaders on Depression and
Relief Activities.

opposing partleS IN congress co-opeTateu
in enacting reconstruction legislation
and a declaration of confidence In
American stability, were voiced last
night by Julius H. Barnes, chairman OF
the board of the Chamber of Commerce
of the United States, in an address be-
fore the Washington Bo2rd of Trade.
At the same time, Mr.. Barnes aSSalled
"outgrown" regulatory laws affecting
private business which he described as
''shackles" that are proving disastrous
to many concerns in unrestricted COM
petition. :.
He referred to the prohibition in
Federal statutes against price fixing by
competitors.
David Lawrence, head Of the Con-
solidated Press Association and OF tne
United States Daily, who preceded MI.
Barnes on the program gave an anaiysis
~ denrexsion. tracing it back TO the
world war and the consequent eco-
nornic and social upheaval.
Relief Program Lauded.
Mr. lawrence declared the program
of emergency relief legislation enacted
by Congress had served not only 70
strengthen the economic structure OF
this country and to lift up public con-
fidence. but would make changes tnat
would last long after the current de-
preston had passed.
A suggestion of how private business
concerns may lend valuable aid to the
community program for relieving un-
employment conditions by creating
work was given by Fleming Newbolo,
business manager of The Star, at the
request of the directors Of the Board
Of Trade.
In keeping with the objective Of the
local Work Creation Committee, head
ed by E. Goring Bliss, he pointed out
The Evening Star Newspaper Co. re-
Gently placed in force plan under
which its employees could obtain loans
to be used for various types of home
improvements, which would beneht
them and at the same time provide
work for the unemployed mechanics
and tradesmen.
Mr.. Newbold expressed the belief that
if such a plan or similar arrangements
were adopted by large number of 10
cal business institutions. there would
result unemployment relief on large
scale.
Savings Fund Employed.
The Star, he explained. employed In
this plan a savings fund which was
created about IL years ago Tor the pur-
pose of aiding its employees in the pur-
chase of their homes Firms not hav-
ing such fund available, he pointed
out. might obtain funds from banks
to loan to their employees, thus provld-
ing capital which the employees as IN
diViduals could not command.
George W. Offutt, president OF the
Board of Trade, announced that the
directors of his organization would
consider means of fostering widespread
adoption of the plan.
Tribute Paid Leaders.
Mr.. Barnes. in a general outline of
the causes of the depression here and
abroad, paid high tribute to Govern
ment leaders and private citizens Tor
efforts to overcome economic ills.
"The generous cooperation mani
tested by Congress in speedily enactlng
q program of reconstruction legislation
was one of the most heartening demon
strations of the capacity Of the Amer
lean people for Self-goyernment In the
country's history.
"As a result of this cooperation, we
have right to feel confident and hope
full of Americas future. We are prov
ing under the. test of world disaster
that our political theory of government
of fixed terms OF responsibility mas
many advantages over the unstable
European theory OF so-called responsible
ministry
I'VE have seen for weeks the over
hanging world question of reparations
shelved because three great countries OF
Europe had to pass through elections
brought on by the reputation Of ad-
ministrative government almost with
out warning At least at home We are
sure Of national administrative policies
for a fixed term of four years when We
elect a national President.
Restraint and Public Spirit.
'We have shown in the conduct of
legislation this Winter that We have re-
straint and public spirit above partisan
influence when great questions OF ma
tional welfare required the enactment
of national legislation. We have a
right to believe based on the intelli-
genCe end public spirit shown by both
the people and their representatives
that the problems yet to be settled will
be dealt with in the same spirit OF
helpful cooperation"
The United States was peculiarly ex-
posed to the shocks of the depression
that enveloped foreign countries. he
pointed out Forty per cent of the
American population. he said. were in
the earning class, with a new army of
woman workers being taken into in
dustry displacing men, as a result Of
the war
More than half of the wealth of the
country was invested in real estate,
the investment returns of which suf-
fered heavily with the coming of the
depression. he said, pointing out that
in decade the United States shifted
its position from that of a debtor ma
tion to a creditor nation, with the re-
suit that the economic structure of this
country received a shock when the in
come from investments abroad were
virtually cut of by depression and
credit and currency troubles there.
Industry in Revolution.
Also. he said. there was tremendous
revolution in industry during the dec
ade preceding the depression, with the
production of the world running
ahead of consumption, giving rise to a
situation in which there was no pre-
cedent to follow. This, he said, led to
price-cutting competition.
This created a problem Of how to
control and conserve production. The
''commonsense" way to solve this prob
leHl' ne saIu, "ouIo nave OeeH AoI coln-
petitors to agree on minimum prices
below which they could not go without
entering a field of destructive compe-
tition
But" he declared, 40 years ago we
made it a criminal act TO do the COM
nonsense thing and this decision that
grew out of the trust-busting' move
ment We have perpetuated and today it
is a shackle that is not fitting revo-
lutionized industry"
Sales Tax Approved.
Edward F. Colladay submitted re-