The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-06-04
Mr.. Gamers POStOfficeS
Chicago Tribune)

MIR. Gamers POStOfficeS
Chicago Tribune)
Speaker Garner has at length put
together his proposals for public
works to cost 81 100000, 900 or more
He has listed every postoffice he in
tends to build and every river and
harbor he will improve. The country
owes him debt of gratitude for this.
There is no longer any need for talk
ing about the wisdom or folly of a
colossal federal bond issue for an abb
straction called public works Mr..
Garner has obligingly told us just
what he would spend the money for.
He wants to build $4,000 postoffices
in towns of thousand population
Galva, H.. is to have building which
will cost $4,000 tGalva is a town Of
less than 5000 souls) and Winnetka
is to have federal building at cost
Of sl55000 for its 10000 inhabitants.
In all, Mr.. Garner wants to build 5000
such postoffices all over the country,
an average of eight or 10 to a con-
gresham.
Not even Mr. Garner can pretend
that the postoffices are needed. It
is safe to say that the construction Of
all 5000 of them will not improve
postal service in any particular Any
money which the government might
save in rent for buildings now occu-
pied will be far more than balanced
by the additional burden of interest
which the taxpayers will be called
upon to meet. The Garner proposals,
then, are as near pure extravaganza
and unqualified waste as they we'll can
be. Mr.. Garner is asking the Ameri-
can people to believe that the cure
for the depression is governmental ex-
travagance and waste.
Mr.. Garner and his friends do not
state their case so BADLY. They say
that what is needed is purchasing
power and that the only way to in
crease purchasing power under pres
ent conditions is to have the govern
ment provide it. When the govern
ment builds 81 ,OO0,OO0,000 worth of
postoffices it creates $1,000 900 900 of
spending power among building me-
chanics, contractors and the suppliers
OF building materials. And, they go
on. that additional purchasing power
is merely the start. for it creates still
further purchasing power among
those to whom it is paid
1t is specifically attractive the
ory, but it is entirely unsupported by
any data from this or any other coun-
try. What evidence there is suggests
that unproduc.ive government expen-
ditures. such as are contemplated,
make little impression upon unem-
ployment. When the situation was
far less critical than it is today, when
unemployment was far less prevalent,
the government distributed we'll over
half billion dollars to the veterans.
That was purchasing power in its pur-
est form and its effects were neg
ligible. Since that handout the de-
preston has proceeded farther and
faster in this country than it has in
any other whose statistics are at hand.
The billion dollars for postoffices
would employ perhaps IS per cent Of
the otherwise unemployed for six or
eight months. beginning, perhaps, a
year hence. What more 1t would &C.
complish by way Of providing employ
nent for others not directly on the
billion dollar pay roll is any ones
guess On the basis of the experience
OF this and other nations in depres-
sion, the probability is that the ad-
ditional gains would be small. It is
altogether probable, then, that Mr..
Gamers program would relieve only
small part Of the prevailing suffer-
ing and for only brief time. A year
or less after the program was started
the country would be as bad off as it
is today.
That is putting the matter conserv-
atively. The probability is that the
country would be far worse off. The
postoffices are to be paid for through
bond issue which will weaken the
price OF government bonds and under
mine every bank in the country. A
bond issue will also increase the over
head OF business which is stagnant
today because the costs of doing BUSH
ness are already so high that no prof.
its can be made at prevailing prices.
AAAS ~uAAAA46 Va ~ WOIGll VI
postoffices cannot be expected to have
an appreciable effect in raising the
selling price of materials, but it will
add to the cost Of doing business and
will, therefore. serve to promote the
depression instead of cure it.
When a man is in good health he
needs no warning against quacks.
When he is i'll, and particularly when
the nature of his illness is obscure, a
certain amount Of mental toughness
Is required to resist the alluring prom.
ises Of the faker. Mr.. Garner and his
friends may resent the charge that
they are economic quacks, but they
cannot deny that they are putting
forward remedy which has not been
tested. which does not bear analysis
and which panders to the universal
longing for better times.
The Mellon Institute Of Industrial
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