Evening star., 1932-11-17

II, the till Of the merchant. and unless
It is made to ring in these places II
will finally cease ringing In the banks.
However, as the result OF unwise credit
policies and the increasing price Of the
dollar It will continue to ring the Dell
OF the auctioneer.
at repeat, the value OF the dollar must
be restored to the value 1t had at the
time these debts were incurred. An
effort has been made to do 50 by the
lowering Of our discount rates two years
ago and the purchase Of Government
securities By banks during the last year.
This effort has failed. The overexpan-
sion of credit before the panic Is still
hanging over the credit system, and
that system has refused to function. as
Is evidenced by the condition Of the
banks. A reasonable reffation OF the
needed Some have called this quack
remedy. but this suggestion comes
mostly from quacks responsible for the
ouack remedies under which we are now
suffering. / fail to see how nation
suffering from an overwhelming amount
of public and private indebtedness can
get out of debt by going deeper into
debt.
Revision of the banking laws should
be undertaken, with a view to taking
commercial banks out of the business
of underwriting stocks and bonds Of f1c-
titious or doubtful value and selling
them to the public. Commercial bank
ing must be restored to Its legitimate
functions
THE need is urgent for new laws re-
lsting to corporations doing business in
industry and commerce and for the con-
troll of corpor ationS, at least so far as
capital issues and consultations are
concerned. Such control will give
greater confidence In corporate invest
ments, distribute excessive earnings in
wages and lower costs to consumers.
prevent the boarding Of excess profits by
corporations, give stability to industry
as well as work out the purpose Of JUS
tice snd honest dealing in the business
world.
"Dry Law Mandate Plain"
The mandate Of the election Is plain
on the question of prohibition. The
repeal Of the eighteenth amendment be-
ing outside the jurisdiction Of Congress,
it is the duty of Congress to submit
through a resolution the question Of re-
peal Of the eighteenth amendment to
the only authority that has the power
to deal with 1t. That power Is vested
only in the people Of the several States.
Another mandate Of the people Is for
drastic reduction Of Government ex-
penditures. This can best be done
through the administration of the bud
get. In presenting the budget to Con-
gress the President makes request for
certain monies to run the Government.
The director Of the budget Is re-
sponsible to the President The money
is spent through the different de-
partmentS responsible to the Presi-
dent. In making up the budget the
President, through the heads Of the
various departments and bureaus ap-
pointed by him, has the opportunity
to make specific recommendations to
Congress as to what commissions and
bureaus can be eliminated, where per-
sonnel can be eliminated. 1t Is for this
reason that the. director of the budget
was made responsible to the President
and not to the Congress.
The fixed interest charge of the
Government debt can be reduced, In my
opinion; by conversion OF the long
! time debt at lower rate Of interest, as
was done in Great Britain. All interest
rates on all debts must be reduced.
1T has been quite popular in certain
circles to demand reduction Of wages
and salaries to bring them into line
with the income Of the farmer but the
people who favor these things say moth
ing about reducing bonds and mortgage
interest rates. rents and income from
leaseholds. These are the wages Of
capital.
These are some Of the fundamental
issues that, In my opinion, are calling
for solution. I am confident we shall
solve them, but we can only do so by
dedicating ourselves to patriotic service
in a spirit Of whole hearted co-opeYa-
ton. The American people have always
in q spirit Of tolerance and forbearance
responded magnificently in every hour
Of the Nations need, and they have the
right to expect that public oficias will
follow their example.
The President elect has dedicated
himself to the service Of America in
that spirit and has promised the people
a new deal. II La our American duty to
dedicate ourselves to that ideal. Let us
forget the rancor Of the past and look
to the future with confidence. courage
and hope.
we must not be afraid TO act and