The Waterbury Democrat., 1934-05-16
|What Has The NelU
 Deal Accomplished?
Survey of Presidents Policies Fearful That Price.
 Raising Projects Have Succeeded Too We'll

quarters that the governments re. covcry program has not brought about n greater degree of business revival. Such m attitude should not be taken too hastily. Perhaps too much in the way Of immedl- ate results was expected in tho bo. ginning by depression- weary nn- ton, over-enger to accept any vague promise of swift recovery. The remarkable improvement that hns taken place during the Inst year is Q matter of record. The banking crisis has been surmount- cd; business activity has increased; {; prices have riscn, and much .nced- cd relief has been given to mii- lions of citizens.
 Fundamentally, the New Deal ia an attempt to reorganizo tho eco. homie and political system in such n way as to permit the govern- ment to take m active part In bringing about cooperative action among all branches of business ac- tivity. It is based on the prin- cipie that proper coordination of economic functions under govern mental direction can bring about and maintain equilibrium; in other words. that man-made regulations can and should suppiant the oper- ntion of natural economic laws m an indivlduaiistic system.
 Unfortunately, it is In connec- ton with thcso relief activities that some of the gravcst misgly. ingg arise concerning the future for the cost of relief Is tremendous, and in tho present Instance 1t iH being met entirely by public bor- rowing. Tho public debt is already nearly equal to the post-war peak, and the borrowing program con. templated by the administration has already begun. Tho president estimates that by June 30, 1885. tho debt will reach total Of noar- ly $32,000 100000. The plan is to stop the borrowing at that point, and 1t is earnestly to be hoped thnt this will prove possible.
 The New Deal has provided q huge amount of much needed emergency relief: but in doing 1t has placed tho government In a financial position that will neces- site q heavy tax burden and will offer constant temptation to inc fiation. It has probably stimulated business activity to some extent, although the stimulation Is Of doubtful permnnency and has in- volved broadening the monetary base to such q degree as to give rise to some misgivinEs for the flu. ture. And 1t has instituted num- ber of supposedly lasting economic reforms that aro commcndable in purpose but are still in such m ex- Dcrlncntnl stage that judgment as be suspended for tho present.
 Thus far, the Now Deal as Q whole can hardly be said to have succeeded or failed. It's ultimate net value k yet to be settled, md the settlement will be determined largely by the success with which the program avoids tho dangers md pitfalls to which it is subject. The crucial point will arrive when the government ceases to pump huge qlhntities Ofrfpublic funds Into the economic system and bus- mess is left to sustain itself by means of It's own internal stimulat. Ing influences.
 And this crucial test will con. tInuc during tho long period of public debt retirement. Heavy taxation and hn enormous. public debt do not offer an ideal back ground for an enduring and sound business recovery. 1t. may, there. fore, be concluded that tho value of the New Deal In the long run will depend on it's success In with drawing its financial support to business, without creating dis. astrous representations, on It's capac- ity to meet maturing obligations without resorting to ruinous taxa ton or to paper money issues,, and on It's ability to regulate. in tho public interest, tho vast and com plex economic forces that 1t has undertaken to bring under central ized control.