Evening star., 1934-11-11
How Will the Elections Affect the
Development of the New Deal

cup 10 lrlgnten OmcldlS, Out It's er1ect
wore of quickly after the spending
stopped.
Dollar devaluation: Offered as a
panacea, this scheme proved a disap-
pointment That much is admitted at
the White House. 1t was supposed to
raise prices, stimulate foreign trade
stir up business activity and end the
depression. The actual result proved
to be speculative boom, from the
collapse of which the country still is
suffering
Silver buying: Like dollar devalu-
alton, offered as a panacea, this
means of money tinkering turned out
in practice to be boomerang. It
was offered as means of opening the
vast markets of China to American
trade. Actually, figures show that
China Is the one country In the world
which has cut its purchases of Ameri-
can goods since the policy of buying
silver was instituted on a big scale.
However, it has given a bounty to
reproducing States. Also, it is di-
luting the country's currency And
Congress Is to be asked to provide for
free and unlimited coinage of the
metal.
R. F. c: This agency has been a
success in keeping the sheriff from the
door Of banks, insurance companies
and railroads. 1t is the country's big
gest bank. But as an agency for di-
rect lending to business men, r. F. c.
has produced few results. -Four
months of effort resulted in loans O.
but $20,0o0,000, which is not a drop
IN the country's credit bucket.
H. o. L. c. and F. c. A: Have
saved hundreds of thousands of city
and farm homes for their hard
pressed owners. These agencies have
given direct and tangible benefits
They proved one of the most effective
antidotes for deflation. New Deal
economists consider them an effective
type of depression relief.
F. H. A: Making progress in inter-
esting home owners in repair of their
dwellings. Also about to start a broad
program Of financing new home con-
struction through guaranteed mort
cages. But, as yet, the Federal Hous-
ing Administration has not turned ur
prospective demand that would lead
to any powerful recovery surge.
Now, If these alphabetical agencies
and these money adjustments have
not produced prosperity, what line oi
attack lies ahead? There are three
lines open. One is to turn back te
orthodoxy, with an end to expert
ments. This would include an an
nounced intention to balance the bud.
get at set date and an announced
intention to stabilize the dollar
Bankers and busiess men would come
back to control Neither the Presi.
dent nor Congress appears in the
mood for that.
Another line of attack would be tc
stick close to the experiments already
started. Attention would be directed
to altering them In the Light of ex-
perience and expanding them slowly
whenever results justified. This i;
a middle course which just now ap-
parently appeals to President Roose-
welt.
The third line would be to set out
in new directions, extending Govern
ment control to private credit re-
sources, initiating the currency, order
ing industry to cut the hours of labor
and instituting much enlarged pro-
gram Of Government spending. This
Is a course that appeals to many mem.
bers Of Congress.
As to the Presidents attitude to-
ward the future, this much has been
made clear:
He wishes to avoid direct imitation
Of the currency and will use all his
political strategy to block this type
Of imitation.
He wishes to avoid further en-.
| croachment of the Government into
| the field of private business. unless il
be the power business and industrie:
involving natural resources. Hi.
course now is set against socialism
whether disguised as an E. P. I. c
plan or otherwise.
| He wishes to avoid any action b!
Congress setting fixed maximum or
the number of hours of work for job
holders in industry. The 30-hour-weel
plan is definitely opposed.
But, in steering down the middl,
of the road, Mr.. Roosevelt is reported
to favor the following:
Unemployment reserves in industr,
and old-age pensions.
A more extensive Government sub
sidy, or at least further Government
encouragement for building.
A definite budget policy that vii
involve a balance sheet, readily un
derstood and convincing enough Il
keep any one from questioning tn
Government credit. ~