The Daily Alaska empire., 1933-10-30
Today and Tomorro,c
- By WALTER LIPPMANN -
 Washington and WaN Street
 Copyright, 1883, New York Tribune Inc

ming states of mind. And such disclosures as these precisely be- cause they are so personal and so dramatic, create hostility and d.strust in Congress and in the country toward Wall Street. A government responsible to public opinion is bound not only to offer remedies for such abuses, but what is more immediately important, to dissociate itself in the public mind from Wall Street
 Therefore, we have had, since March 4, what might be described as rupture of diplomatic rela- lions between Washington and Wall Street.
 But while this rupture is main- tained, Washington ardently desir- es to have Wall Street resume the invest tment business. It is absolutely essential to recovery. This brings us to the real diff culty of the present position. As an essential part of the New Deal the Administration must reform finance. AS an essential part of Recovery it must revive finance. But how do you reform and re- vive a financial community with which you will not have anything to do?
 It is a stalemare, and do not see how it can be broken until both Washington and Wall Street make up their minds on matters of fundamental principle and then act upon their decisions. It is for Washington to decide whether it means to reform private finance or to supplant it. If it means to supplant it, then its present program for the use of govern ment credit is ridiculously made quate. I do not myself believe that it could be made adequate without an intervening period of suffering too frightful to contem- plate, and I do not believe that the Administration either desires a revolution of this sort, or has any mandate for it. But if it is to reform, and not to supplant, private finance, then it becomes of vital importance to disclose the whole scope of the reform and to fix clearly it's limits. Private in itiative can revive under definite restrictions; it cannot revive in an atmosphere of indefinite apprehen- sion. If private finance is to be used as one of the major forces of recovery, the Administration would be cutting off it's nose to spite it's own face if it failed to say exactly where the New Deal in finance begins and ends.
 1t is for Wall Street to decide whether, in principle, it will &C., cept the New Deal or resist it. I say in principle, and by accept ance, I do not mean signing on the dotted line. I mean loyal de- termination to attain the objects of the reforms, sincere resolution to maintain the new standards of financial practice. There are ways of testifying to such an attitude of mind
 With clarification from Wash ington of what the New Deal means in finance and with a will ingness to accept it in principle by Wall Street, one might hope for resumption of diplomatic inter- course and of practical co-opera- ton. That is clearly necessary to overcome the emotional paraly- sis which has closed the capital markets. In the resulting stagna- tion of investment is to be found the greatest immediate obstacle to unemployment, and the most dan- |sgerous threat not only to Recov- cry, but, in the longer wick, to the orderely setting up of the New Deal.