Evening star., 1934-04-08
BY OWEN L. SCOTT.

pdnlOn ODJectlVeS nave Deen teamed
up by the Roosevelt administration.
They are: Recovery from the depres-
sion and reform of the system that
led to the depression.
OF late the cry has gone up in busl-
ness and financial circles that recov-
cry was being retarded through its
association with reform. These In
tereStS have said to the President;
"Unhitch the team. The two have
been driven together long enough. Let
us try out recovery unhampered by
reform and we'll show you real speed.
Then reform can draw up the rear"
Until now these urgings have gone
unheeded. The argument has pre-
vailed that to delay reform until after
recovery would mean the complete
sacrifice of reform.
But now, so events suggest, the
President is ready to pull back little
on reform and let industry see what
it can do with recovery. What are
the signs of this possible change?
They are many. AS examples:
x
Little direct pressure has been
brought to bear from the White House
to push through Congress bill that
would provide rigid regulation for the
country's stock exchanges.
The plan of Senator Wagner OF New
York. to outlaw company unions and
to put the Federal Government further
into the task of policing industry ad-
mittedly is on the verge Of death
through lack of official encouragement.
Gen. Hugh Johnson, N. R. A. ad-
ministrator. would let the drastic
licensing provisions of the industrial
recovery act lapse June Is. relln-
gushing the one powerful weapon that
the Federal Government possesses to
drive into line balky industry.
Plans for modifying the much
criticized securities act are receiving
wide support Expected is some
loosening of the section that makes
corporation officers and directors per-
sonally liable for all miSstatementS
of fact in security offerings.
The reasons for easing up on the
drive for reform just at this time are
numerous.
One is that industry has recovered
it's composure and feels strong enough
to fight back for the first time in
over a year.
Another is that there are increas-
ing indications of business improve
ment and a growing tendency to let
we'll enough alone. Congressman up
for reelection want to do nothing
to disturb an incipient revival.
A third reason is that the settle
ments of the threatened automobile
and coal strikes. for the time being
at least, have created the hope that
labor trouble is not going to upset
the recovery apple cart this Spring
This gives rise to the feeling that
the Government should do nothing
to aggravate labor relations.
Then there are arguments to the
effect that the Government should
retire gradually from the command
ing position it has occupied for the
past year and allow industry to show
whether it can do more to solve the
unemployment problem.
Under the N. R. A. big business
has been given an opportunity to
laws With this new freedom the
country's industries have chance to
make a showing. How they use that
freedom may determine the future of
the reform program. Already Sena-
tor Borah is urging that the anti
trust laws he brought back to full use.
But policies that have been fol-
lowed during the past year are bring
ing results.
Myron c. Taylor, chairman of the
United States Steel Corporation, said
this week that recovery was no longer
matter of opinion, but of fact.
Alfred P. Sloan, president of General
Motors Corporation, asserted that
Industrial recovery is under way
with irresistible force"
Jesse Jones, chairman of the Re-
construction Finance Corporation,
pointed to the fact that more than
$3.50, 100000 has been paid back since
January on loans made by the cor
poration. He believes loans to July /
will be $500,000,000 under estimates
because of the better condition of
borrowers.
Henry Morgenthau, jr., Secretary of
the Treasury, advised that the Ex-
ecutive Committee of the Federal Re-
serve Bank governors told him that
business was improving in nearly all
sections.
There has been a tendency to at
tribute this improvement to vast Gov
eminent expenditures.
The figures show that the Federal
Government has spent only about
81 900, 100000 more in the present fis-
cal year to date than during the last
fiscal year, when the depression was
at its height. The deficit is only
about 5000, 100000 above the figure
year ago.
Not only that, but spending is far
below the estimates laid out by Presi-
dent Roosevelt. If his program were
to be followed, weekly outlays from
the Treasury would exceed $400, ,000,-
600. They actually have been run
ming at the rate Of about $50, 900 600.