Evening star., 1932-07-27

firm. adopt moderate measures Of econ
omy and provide for q slight imitation
Of the currency.
Though he believes the depression
will not end quickly, the Senator adds,
''The fact that we are realizing the
mistakes of the past makes me op-
timistic as to the future. Perhaps no
session Of Congress in our day has been
so widely criticized as the one recently
closed.
But It Is interesting to note, now
that Congress has adjourned, that the
sentiment of the country Is changing.
The growing verdict is that Congress
has not done a bad job, considering
the complex problems and the delicate
situations with which it has had to
deal. There Is general accord that
Congress avoided enacting legislation
that might under present conditions be
labeled dangerous or obstructionist.
Too Much Expected.
"My personal view Is that while the
legislation has been safe and sound,
the results will be disappointing, be-
cause the public had been led to be-
lieve the Government possesses the
magic power Of changing economic laws
to convert an economic depression
quickly into an era Of prosperity.
About all it can do In q situation like
the present is to remove obstructions
that stand In the way Of business re-
vival and reduce to a minimum the
governmental factors that hamper in
duStry.
"The fundamental trouble today, to
my mind, is our enormous indebtedness.
individuals, business and financial insti-
tutions, real estate, municipal, State
and national institutions are under
obligations that are smothering trade.
Generally speaking, the income of the
Nation reached about 100000, 600 a
week before the stock market crash. OF
that, Is per cent went to pay all ex-
penses Of government-local, State and
national; 20 to Is per cent more to pay
interest on the debts Of individuals,
partnerships and corporations. Thus
nearly 40 per cent Of the Nations in
come was absorbed.
During imitation we did not feel that.
We met the abnormal situation by con-
tinually borrowing and spending. But
it could not go on forever-this constant
increase OF debts and cost Of govern
ment.
ut Is apparent, In my Judgment, that
before business revives there must be
substantial reductions in existing in
debtedness. I realize that this means
that the creditor class will have to face
losses and the debtor class will gain
thereby. Money imitation along sound
lines may be necessary; in fact, step
in that direction was taken by the re-
cent Congress in providing for a cur
rency expansion Of 1894, 100000.
There are two remedies that seem to
me necessary. One is elimination Of
debts through liquidation, which is al
ready under way with many OF the f1nan-
cial institutions Of the country. Un-
fortunately this Is q slow process and
that is why there cannot be any speedy
recovery from the depression.
Sees Improvement.
"The second step Is to cut costs OF
government In line with present in
comes and values. feel that because
both these steps are being taken the
situation is getting better.
THE chief commendable development
of the recent session of Congress Is that
| for the first time since the depression
the executive and legislative depart
ments of the Government have realized
that this depression Is more than a
temporary one; that the causes OF It are
deep-rooted in the economic structure
prosperity is to be restored, is the re-
Vval Of trade"
Senator Walsh gave an instance Of
| luxurieS in government.
THE first thing that strikes the eye
of the visitor to Washington" he said
"is the enormous new Department OF
Commerce Building, which cost SIT 7,5O0,-
600. The sight of 1t brings home to the
| citizen the immense extent to which The
business of Government was expanded
when he realizes that this huge struc-
ture is necessary for one department Of
the Government. It is a building SO cI
| 100 years ahead of its need"
The Senator's criticism Is that the
Department Of Commerce, one finger o.
the Government. has grown so big thai
| it needs such a tremendous structure
He believes too many bureaus OF gov
ernment have been created.
ENORMOUS upkeep caused by expenci'
lures Of this character will burden oul
people for generations and Is responsible
for the unwarranted and unjustifed In
creases LII the cost Of government" Sen
ator Walsh said.
Copyright, 1882, BY North American News.
paper Alliance. 1ncD
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