The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-12-19

general impression that prices have
ton of goods.
But for this belief we should have
them in anything like their present
form. The long-term social reforms
have been grated upon this basic
conviction among producers that
there must be a collective restTlc-
ton of production. Therefore, in
portant and desirable as they are,
they are incidental.
The limitation of child labor and
of sweating, the encouraC cement OF
collective bargaining, the codes of
fair practice to reduce commercial
corruption, the effort of the AAA
to do something about the old
problem of the middeman-all OF
these socially desirable measures
have been advanced 50 quickly by
by the slow process Of legislation,
voluntary agreement, rather than
because farmers and business men
believe they have to produce less in
order to earn more.
Thus the AAA derives its vital
force from the fact that it offers
to raise farm prices by paying
farmers to reduce their crops; the
NRA derives its vital force from
the desire of established industries
to stabilize" themselves. Its method
is to encourage cooperation by re-
laxing the antitrust laws and the
purpose is to keep production down
to the effective demand.
If you remove from both expert
ments the idea that production has
to be curtailed, you remove from
them their major principle. Take
out of AAA the subsidies to reduce
crops, and little would be left. Take
out of NRA the right to combine
for what used to be called restraint
of trade, the right directly or indi-
rectly to fix prices at the highest
net return, rather than by the law
of supply and demand, and little
would be left of the business mans
enthusiasm for the experiment.
Take out of the public mind, or
the mind of congress and the adj
ministration, the idea that we are
overwhelmed by cur productivity,
ana you would have the greatest
difficulty in obtaining assent to the
toll Of the processing taxes or to
the relaxation of the antitrust
laws.
THUS, while there are many who
Il would in theory like to see a
planned economy, that is not Why
we have all this planning at the
moment. We do not have it be-
cause of Professor Tugwell's doc
trines, assuming he holds the doc
trines imputed 70 him We have it
because the great majority of the
people, seeing the surplus stocks,
the empty factories, the idle cars
and ships, think there is over-pro-
duction and that we can not recover
without curing it.
To any one who believes, in a
mood of hope or of fear Git makes
no difference), that AAA and NRA
are revolutionary changes in the
organization of capitalism, the ques-
ton may be put, What do you think
would happen to them if we re-
covered? Suppose AAA and NRA
brought production into balance
with consumption so the prices rose
because demand was greater than
supply.
Or suppose some other thing, the
natural forces of recovery, or the
monetary policy, brought about a
great demand for goods.
Under these conditions, how long
would farmers let Washington tell
them how much they may produce?
How long would the people pay
taxes to pay farmers to produce
less? How long would business men
stand for those codes which limit
the entrance Of new producers?
How long would the people allow
combinations in restraint of trade?
The moment the recovery comes,
and prices rise through scarcity of
supply, a revolution in public opin-
ion is bound to take place. The
| producer, farmer and business man
will rebel against restrictions which
prevent him from taking advan-
tage of the market
He will attack the established in
dustries, which have semi
monopolistic position under the
codes, and he will be joined by the
consumer and we shall have what
we always had in time Of rising
prices, an cutlery against the high
cost of living, an antitrust agita-
ton, and an attack on the tariff.
Il
THERE will remain the inciden-
L tai long-term social reforms
which it may be possible to consoli-
date anG maintain by educating
public opinion and by the pressure
Of labor organization. But if that is
to be done, those who are admins
tering these experiments should
realize that or ne glutted
markets are fr cneir powers Of
compulsion ovOr producers will