The Daily Alaska empire., 1933-12-05

of the United States govern i ment rests the safety of de- 1 posits, the security of insur-
 ance policies, the activity of
 industrial enterprises, the val ue of our agricultural pro- ducts and the availability of
 employment.
 The credit of the United
 States government definitely
 affects these fundamental hu-
 man values. It, therefore, be-
 comes our first concern to
 make secure the foundation. ] National recovery depends up-
 on it.
 Too often in recent history
 liberal governments have been
 wrecked on rocks of loose fis- cal policy. We must avoid this | danger.
 When the President said that national recovery was dependent upon the credit of the United States, he undoubtedly had in mind not merely the maxims or orthodox finance but the great program of measures for recovery I and relief which he was about to propose. Today that program has been authorized and is in opera ton, and every one can now see what few could have seen very clearly eight months ago, how ab- solutely dependent is the Roose- welt program upon the national credit. So dependent is. it that it would not be unreasonable to say that the President has based his i whole program upon the use of the national credit. The Roosevelt recovery program is in substance a gigantic credit operation. | < l Lest anyone say that insistence upon the crucial importance of the national credit comes from those | who are opposed to the New Deal, let us recall the Presidents own account, in his radio speech of Oc- tober 22, of how he is construct 1 ing the edifice of recovery" Here are some of the stones and the columns" of the temple. | 1. Relief for the unemploy- ed. This money has to be borrowed at4 2. The saving of farms. and
 homes threatened with fore closure. The money is ad-
 vanced by the government.
 The money which is advanced has to be borrowed.
 3. The lending of large
 sums to industry and finance"
 by the R. F. c. The money that |. the R. F. c. lends has to be
 borrowed.
 4. Several millions for public
 works. The money for these
 works has to be borrowed.
 5. Paying billion dollars to :
 depositors in closed banks.
 The money to pay thsm has to
 be borrowed.
 6. The repair of the impair
 ed capital of banks. The mon ey for this operation has to | be borrowed.
 T. There should also be
 mentioned the recent policy of i making loans to farmers to
 sustain farm prices. The mon- 1 ey for these loans has to be
 borrowed.
 1 Can it be doubted that the Ma. tional Recovery as planned by the. President depends upon the credit of the United States? Will any one who professes to believe in the Presidents program dare to come forward and say that he is not vitally, deeply and continuously interested in maintaining tho credit of the United States?
 There are, it should be recog- nized. many reputable persons who disbelieve entirely in the theory that a government can promote recovery by borrowing money and distributing it as purchasing pow CT. But the Roosevelt admins tration is committed to this doc urine. Its fiscal policy rests on two principles; one is that the or dinary expenses of government. including interest on the debt. must be covered by revenue; that the routine budget must be in balance. The other principle is that having achieved this, the gov ernment can and should borrow and spend in sufficiently large amounts to overcome the inertia caused by the lack of private spending on the part of consum- CTS and investors. The unem- ployed have no money to spend They must be supplied with mon ey. The farmer, the home owner, the railroad or industrial corpora ton, cannot renew mortgage at the bank or in the capital mar ket; the government must do the work the bank is unable to do. Enterprise is at low ebb; men will not or cannot borrow to build: the government must start enter prices of its own.
 This is the theory on which the