, 1934-12-07
The World
At a Glance
By LESLIE EICHEL
Central Press Staff Writer

NEW YORK. Dec. This will
be the best Christmas in five years.
"A wave OF optimism, more 81
among hard headed" business men
than others, is overspreading the
nation.
Some OF the financial men say
outright that the present upturn is
in the most solid footing OF any
IN years.
Business has been gaining Steadi-
IL since September.
Large interests are eager that ID
continue. As they see II, capitalism
actually Is on trial. For all they
know, this may be its last chance
They Intend TO prove that all the
talk against II Is "boSh'.
Even the public utilities. in spite
o. being forced into a corner by the
government. stand to make large
gains. After all. the public utilities
have gone through the depression
With much greater business than
the railroads.
Public utilities have suffered large
" because Of their own doings-
oyeT-capltalization, speculative bat
Ties for control, "InsulhSm".
Another Side
There Is, OF course, another side.
There are economists who hold
that the present upturn may b.
based on artificial elements, that
4 AZ NNfwm aMNNHu1NNH haw 49,. aVmAtZ
that the patient merely seems
liyeler because OF stimulants.
Probably the best analysis OF this
view was given by David Cushman
Coyle, a member OF the technical
review board OF the u. 8. Public
Works Administration.
Mr.. Coyle. speaking before the
international Industrial Relations
Institute, said:
There is great danger that the
fallacy OF believing that recovery
through the stimulation OF the capt.
tai goods industries which Is held
b. both Wall Street and many
economists will result III the collapse
OF our system"
Explaining that period OF depreS-
sion was the natural corollary OF z
period OF boom, when business
s.oughs off the debts 10 has aecumu-
lated. Mr.. Coyle said: Public
works OF a certain type are part OF
the debt load which finally brushes
business"
These debts are financed and
paid for by consumers. the same
source from which business must
set the funds 10 pay of its debts
he asserted. Mr.. COyle explained.
Public works In depression n
they are self -liquidating or based
on municipal debt. or financed By
the federal government through
sales taxes, are additions 70 the
effective volume OF business liabi-
lltieS which u Is the function OF
the depression 10 reduce.
The only kind az timed public
works that could alleviate the
depths OF a depression without
creating an equal amount OF future
depression would be non-self -liqui-
dating works built by the federal
government or by federal grants
and ~chargeable wholly TO taxes on
' the upper brackets OF personal in
II AhAAAh0 AAAA AAAANA AAMANANEr TX nNAIa
Temporary Financing
Temporary financing OF public
works BY the use OF bonds Is favor
er BY those elements OF the COM
munity who are interested In heavy
fluctuations OF the business world,
Mr.. Coyle added.
Discussing the subject OF planning
public works. Mr.. Coyle stressed
that the problem was not alone
one OF physical planning OF a pro-
gram but also one OF making il
III into the larger pattern OF the
economic and social development oil
the nation
The failure or public works %
make sense In detail IN due entirely
~ The maladlustment OF the whole
bubble works program 20 the more
abstract problems OF economic re-
Mobilization and historic orienta-
ton" he said.
Mr.. Coyle praised Secretary lexis
for resisting the clamor for i'm
mediate spending OF the So OO0.000.-
600 Of PWA money In favor Of a
more careful and planned eSpen-
diture.
Shames Wall street
Speaking or the PWA. ID has put
shame into Wall Street. tor &C
complishing something in is own
sphere better than Wall street
ever did.
When Wall Street said there VA
no market for municipal securities
the PWA assumed those securities
Later, the PWA went out into the
open market with the same securi-
t!eS--and the PWA sold those S.
curitieS 10 bankers, now eager 10
obtain them, a. = profit
Darrow
Clarence DarrOW Is another who
can attract an audience.
The veteran Chicago lecturer-laW-
yer asserts that its Is crazy" 10 cut
production and raise prices when
millions are on relief. without ade-
quate food, clothing or shelter.
Darrov asserts that, In effect. has
the same results as the high tariff
OF the Republicans.
Is there any solution? DarroV
advances this:
We have been going through a
terrible time and I do not know what
the end will be, but l know the rea-
son u an unjust and unequitable dis
tribution Of wealth. A few have n
and the rest arc poor. They always
have been and II looks as II they