Evening star., 1932-08-21

tl0 SdIeJy OF BUSINESS ellIeT pElSeS III
general, we're staked on this guess. The
people who faced the facts were saved;
the others were ruined. This is the
measure of Republican leadership.
Worldwide Depression.
When facts could no longer be ig-
nored and excuse had to be found,
Washington discovered that the de-
preston came from abroad. In Octo-
ber of last year, the official policy came
! forth-'The depression has been deep
| ened by events from abroad which are
beyond the control either of our citizens
or our Government" excuse which
the President still maintained in his
acceptance speech last week.
Not for partisan purposes but in pr
der to set forth history Alright. that ex-
cuse ought to be quietly considered.
The records of the civilized nations of
the world prove two facts: First. that
the economic structure of other nations
was affected by our own tide of specu-
lation and the curtailment of our lend
irg helped to bring on their distress.
| Second, that the bubble burst first in
the land of its origin-the United
States. The major collapse abroad fol-
lowed 1t was not simultaneous with
ours.
Moreover, further curtailment of our
loans plus the continual Stagnation
caused by the Grundy tariff have con-
tinued the depression throughout inter-
rational commerce. If in your own
minds you hesitate to believe this on
the grounds that it may be actuated by
political motives. then l beg you to look
Tor yourself at any reliable index of
international trade, of loans, Of price
/ trends, of interest rates, of production,
Of the other nations of the world To
paraphrase Kipling, "On our own heads
the sin and the saving lie"
I sum up the history of the last ad-
ministration in four sentences.
Charges False Economics.
| 1t encouraged speculation and over
production, through its false economic
policies.
1t attempted to minimize the gravity
| and miSled the people as to its gravity.
| 1t enormously charged the cause to
other nations of the world.
1t refused to recognize and correct
! the evils at home which had brought
1t forth, delayed relief and forgot to
reform
So much for a dispassionate review
OF the facts of history I have placed
the blame. But to place the blame is
not enough.
The logical question before us now is
this: What steps have been taken to
recognize the errors of the past? What
concrete remedies have been proposed
to prevent them from happening in the
! future?
The real point at issue Is this: Have
the leaders of the Republican party, un-
der captaincy distinguished. during
the past four years by errors of leader
ship. unWillingness to face facts, whose
whole theory of curing the country's ills
has been to call his leading sufferers to-
gether in conference to tell him how
/ they may be healed: has this party. I
! ask, under this leadership suddenly be-
come the heaven-sent healer of the
country who will now make we'll all that
has been i'll? In other words, has the
Republican elephant spotted with the
mire through which he has wandered
blindly during these last four years,
suddenly. by miracle over night, become
a sacred white elephant of spotless
purity, to be worshipped and followed
by the people, or has he merely been
/ scrubbed and whitewashed by cunning
shoWmen in the hope that they can
deceive a credulous electorate for four
years more?
| fOrelgn Loans Policy.
! The Republican platform provides the
familiar explanation that the length
and depth of the depression came from
/ abroad. But there is no recognition of
the part played by unsound investing
policies permitted under lax and in
| different leadership. This caused
very considerable part of the losses sus-
tanned by the people Of this country.
/ The only constructive suggestion re-
| garding investments Is an evasion. It
| says that serious problems have arisen
! from uniting investments to commercial
| banking, but it does not have the cour-
age to suggest separation. 1t provides
no remedy.
The acceptance speech Of the diStin-
! gulhed gentleman who is running
against me is equally empty of hope on
this subject. There is an eloquent de-
| scription Of the storm through which
We are passing; glimpseS through the
clouds, of troubled officers pacing the
deck wondering what to do; belated
recognition that the storm rose out of
hot current of speculation: stout ad-
herence to the alibi that the secondary
phases came from abroad; the outline
! of the ship clouded in vague phrases
about the intrepid soul of our people"
| OAANA5AA4S biiC 4lSuAC VI SpCcCil, Ilc SDtdkS
| with feeling Of "soil poisoned by
speculation" in which grew ugly weeds
of waste, exploitation and abuse of
financial power" but not of the benefi-
cent sun OF administrative approval un-
der the rays of which these weeds
sprouted and flouriShed.
Attacks New Promises.
| As to the claim to economic cap
! taincy, the address is completely unre-
generate. He said, II am organizing the
private industrial and financial resources
OF the country to cooperate effectively
with the vast governmental instruments
which we have in motion"
The only approach to the protection
| OF the investing public beyond tempo
rary and immediate loans is a vague
| reference to stronger banking system
which will not, he saws, permit the
credit system Of the country to be made
| available without adequate check for
wholesale speculation in securities" He
adds that "for seven years I have re-
peatedly warned against private loans
abroad for non-productive purposes"
| I hive set forth thus in the words of
Republican leaders the rise, the decline
and the fall of the new economics"
We now come to the philosophy which.
the President maintains, is behind all
! this. Here we have a strange contrast.
We have In many utterances, ending
with the acceptance speech, an exposi-
| ton Of the doctrine of American indi-
vidualism. Set over against this theory
is an actual policy which is directly in
conflict with it.
Appraising the situation in the bit
ter dawn of cold morning after, what
do we find?
We find two-thirds Of American in
dustry concentrated in a few hundred
| corporations and actually managed by
| not more than 5000 men.
Savings Put in Stocks
We find more than half of the saw
ings of the country invested in corpo-
ration stocks and bonds and made the
| sport of the American stock markets.