The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-12-24
SPEND TO END
DEPRESSION, is
BANKERS IDEA
Paul Mazur, Economist and
FinanCier, Offers Remedy
to Halt Slump.
BY OTIS PEABODY SWIFT
United Press stan Correspondent

United Press stan Correspondent
NEW YORK, Dec. 24-That the
United States can and should
spend itself into prosperity" is the
thesis advanced by Paul Mazur
banker economist and partner in
the banking firm of Lehman
Brothers. 1t is his answer to the
charge Of democracy" that mech
anization and the debt structure is
forcing our civilization toward
chaos
Such spending, he told the United
rress, in an exclusive interview to-
day, best can be stimulated through
institution of the five-day week,
after the country again has APP
preached employment sterilization
Such sterilization can be given
an impetus by a $4,000 100000 gov
eminent loan to be employed in
public works and in easing the
building and mortgage situation.
Spending Is Urged
Il eblieve," he said, that there
is a logical sequence of reasonable
devices by which the downward
spiral could be arrested, an up
ward spiral-call it relation, infla-
ton or what you will-generated.
I'VE are wealthy only through
consumption, through use. At a
time such as this the government
should definitely spend, not econo-
mize, cut and pare. The govern
ment's first activity should be to
release some Of the tremendous to-
tai Of boarded money which now lies
sterile The government should
borrow this money, and put it to
work.
Let us say that $4,000 900, 600
government loan were made, and the
money employed in the creation OF
public works.
1T should be used to build
bridges, tunnels, super highways
articles of public use. 1t should be
used for gravely needed slum re-
construction. Substantial amounts
should be used to make money avail
able for private homes, which the
home loan banks have not done.
Would Create Credit
"A half billion dollars for con-
struction of private dwellings would
release an equal amount in col
lateral activities, in collateral spend
ing by interested groups engaged in
spending the half billion. BY the
time that this money had run
through half dozen of the multiple
hands that would provide work OF
one fashion or another in these
projects, a credit of from three tc
five billion dollars would have beer
created, would have been added tc
our yearly income for that period.
THE repeal of the Volstead act
although its effects will not be as
far reaching as many hope, woulc
be a further accent to relation. The
domestic allotment plan-the most
significant piece of economic legiS-
lation in fifty years-afTords vel
another.
Here is a group of forces which
if set in motion through an or
gained consecutively planned effort
would arrest deflation and turn
N the curve of consumption.
Advocates Five-Day Week
"Yet in themselves these would
bring only partial recovery. Some.
thing more is needed to absorb pro.
duction which could result.
The five-day week is the logica
answer to this. 1t is only in idle
time that we consume, that we ust
, things. We consume almost moth.
ing when at work.
Thus we need not less work, bu
more leisure. A five-day week would
mean that people would have more
time to go to theaters, drive anC
wear out automobiles. seek new
forms of amusement, patronize re.
sorts. 1t would means that NOR,
would wish to live away from cities
would mean an enormous impetus t
suburban building and resort life
The return to the eleven billions
year expended for building be-
tween 1923 and 1923, in itself add
total of thirty billions to our an
nual income through its ramihca
tons"