The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-11-09
Liberal Viewpoint
by DR. HARRY ELMER BARNES


IF the recent elections were test Of the New
Il Deal it has come through swinlmingly IN
political sense But the real test of its ultimate
success will be the scundness of its economic
doctrines. The administration may have three
fourths majority in congress, but If its funda-
mental policies are unsound and anti-social 1t
sooner or later will go down in ignomlnious dis
grace.
One only has to recall the congress Of the
United States during the period Of reconstruc-
ton TO find striking proof of the futility Of poti-
cal omnipotence in the face of a wrong-headed
program. Indeed, one Of the major weaknesses
Of the Roosevelt administration has been the
disproportonate attention given to political con-
siderations at the expense Of proper care TO
sound economic policies.
If economics is to provide the ultimate test
OF the success Of the New Deal then it is al
ready facing a crushing defeat at the very
moment Of a sweeping political victory
In an article on The Collapse Of the New
Deal" in the November Common Sense, John
T. Flynn gives us a fundamental analysis OF
the outcome of the New Deal to date which not
even Donald Richberg can laugh of or scowl
out Of court
1t is no exaggeration to say that no living
man is better fitted than Mr.. Flynn to present
an economic appraisal Of the New Deal, and his
verdict must prove a staggering blow to those
vino, like the present writer, have wished Mr..
Roosevelt well.
Mr.. FLYNN minces no words, and he backs
1V1 up his statements with plenty of proof.
LAS recovery effort" he writes, the New
Deal must be called thus far a complete failure.
The capital goods industries at their lowest
ebb. Unemployment is mounting steadily. To
the queston-are we recovering?-the answer
must be those five million families on the relief
rolI-20 OOO, GOO people-the largest number since
the depression began"
Il think it a fair statement that the MIRA
has put back the recovery effort at least eighteen
months. It's first poisonous effect was to fool COM
petely the people into believing that the NRA
was going to produce recovery and reform and.
by the violence and energy of its ballyhoo take
the mind of the administration and the nation
off all the really essential problems"
Preparing a chart of business conditions
based a composite of several of the best in
existence, Mr. Flynn shows that the index Of
business activity on Nov. l, stands exactly where
it did on New Years Day, 1888, two months be-
fore Mr.. Roosevelt was -inaugurated. From the
standpoint of business recovery then, this is
what we have to show for the expenditure of
S6,000 100000 in excess of receipts since March,
1888.
MIR FLYNN goes down the whole length Of
wi the New Deal policies with his bill of par
ticulars: Cd The NRA handed over American
industrial life to the employer class, fact which
Mr. Richberg himself has recently been COM
PEELED to admit; % labor has been sold out,
and the so-called Magma Charta of Labor
clause 7A-has proved but IAN empty collection
of Words" 80 even the drought has not saved
the AAA, since its gains have been wiped out by
increased industrial prices and the inadequate
gains and purchasing power on the part Of
labor; and "a the financial policies of the adj
ministration have been patheticaly inadequate
or Notwithstanding banking bill does not even
scratch the surface, amendments have taken the
teeth out of the Securities Act, the stock eX-
change bill was sadly weakened at the insist
ence of the Presidents advisers, and fatal mis-
take has been made in attempting to save the
old debt structure.
The governments plan of financing through
the sale of bonds is becoming progressively more
difficult and the administrations only ace-in-
the-hole today is the gold profit of $2800,0O0,0OO
When this is used up initiation will be the only
possible resort.
When that moment arrives the Roosevelt
administration will be at the end Of its rope
and the time Will be at hand when all the crazy,
contradictory make-Shifts must be abandoned
and the present group of uniformed and polltl-
cay minded leaders must be replaced by men
who have some notion of what they are doing"
These are good words for Mr. Roosevelt and
Mr.. Farley to read between patches of con-
gratulatory kilograms.