Evening star., 1932-04-09

only ones that have insisted upon Fed
eral aid. Many business groups, which
are quick to denounce expenditures for
other purposes, have been at the Fed
eral trough for many years asking for
funds. The same business men who cry
out against governmental extravaganza
on the one hand are usually found sign-
ing petitions for new post ONCE build
ing or for the deepening OF a harbor.
Chambers of Commerce that come 70
Congress and denounce the Farm Board
are likely to be found also advocating
some Federal expense to benefit their
particular locality.
There is much hue and cry about
Government competition with business.
The principal activity OF the Federal
Government which competed with pri-
vate business is the parcel post, which
put mcst of the express companies out
of business. The question Of whether
the Federal Government should engage
in parcel post operation came up 20
years ago. The farmers groups insisted
upon it and gradually a huge business
was built up. Today there is hardly
legislator who would vote for the repeal
of the parcel post act 1t has become
imbedded in the Federal structure.
The national policy on the subject
of competition with business has never
been clearly defined, but the trend has
been in the direction of removing the
Government from any business which
could be operated successfully without
Government aid. Thus the entrance Of
the Government into the field Of sta
bilization operations was supported
wholly on the theory that the farmers
could not get private capital to assist
them in the marketing of their prod
ucts or in stabiliZation operations. The
latter, of course, has been a matter of
much controversy. but nearly everybody,
including members of the Farm Board
now agrees that stabiliZation operations
are not economically sound and that
the only reason they were embarked
upon was to save several hundred banks
in the Middle West which were threat
ened with failure.
But the fundamental principle,
whether the Federal Government should
lend money or extend direct aid to
groups, Is one which has not been de-
fined by Congress. Relief for the
drought-stricken areas in Arkansas,
loans directly to farmers for seed, loans
to railroads, loans to cooperative mar
keting organizations, are all part of q
rapidly growing belief that the Federal
Government is the court of last resort
when there is distress prevalent in the
land. The idea that these needs should
be completely refused or at least that
some of them should be placed back
upon the States has not developed in
the National Legislature.
Controversy Coming.
This Is one of the subjects on which
there will be much controversy in the
immediate future, particularly when the
presidential and congressional cam
paigns have eliminated from the sub
lect much Of the politics that is now
involved in 1t. 1t is a safe prediction
that the December session of Congress
will see more common sense with re-
spect to legislation, and particularly gov
ernmental expenditure, than the pres
ent session.
But none Of the economy measures,
particularly the cutting of costs in gov
ernmental operation and the prevention
OF new appropriations, can be accom-
plished without the active and alert in
terest of the taxpayers. There are signs
on the horizon that the taxpayers are
arming for the fray This is the most
healthful sign in a generation.
(Copyright 1882
(Tomorrow's article, the last of the
series, will deal with practical plans for
3alsncing the budget)