Evening star., 1934-03-04
Effect on Average Citizen
Declared Uncertain
on Anniversary.
INDIVIDUAL Initiative
STILL HELD LACKING
Public Disposed to Give Approval
to Revolution in Political
and Business Life.
BY CHARLES F. SPEARE.

today the door closed on the old
deal; preparations were being made to
open it to a new one. Whether the
latter will help the average American
citizen more than did the former,
it is too early to determine. year
hence the answer may be given more
accurately.
No section of the country has been
more affected sentimentally by the
transition than Wall Street and
those phases of business life COM
monty associated with it. Actually, in
those things in which Wall Street
deals it is much better off than it was
II months ago. Securities are higher,
the banks are immeasurably stronger,
corporation reports show profits in
stead Of losses.
It is the same with the basic COM
modities. Cotton, wheat and corn
are quoted an average double the
price of the first week of March.
1893. Unemployment is about 40 per
cent less than at that date. The
public has stopped its run on the life
insurance companies in the form of
loans on policies.
The only phase of the domestic
economy that has grown worse in
stead of better is identified with real
estate and real estate securities.
Even this has improved slightly In
recent months.
Initiative Still Lacking.
Confidence was completely shat
tered year ago. There was almost no
courage in the business world. Today
there is too little confidence and not
sufhcient initiative to speed up the
machinery of industry by natural
process. This is because the new era
has introduced ideas that are strange
and repellent to the individualistic
type of merchant and manufacturer.
surrounding his affairs with checks
and codes which appear to diminish,
if not to destroy, his profits. The
gold standard has been abandoned,
the Government is spending at an
inordinate rate, the social philosophy
Of the administration applies itself in
advance of economic considerations.
So be Is inclined to let things drift,
now that the crisis is over. and by
assuming this attitude places more
of the direction of business in Gov
erpmept hands.
In the mass the public, after year
of observation of events. is disposed
to give its approval to what Wall
Street would term a revolution" in
political life, in the national economy
and in the processes of business ad-
miniStration.
The most important paragraph in
the statement by Richard Whitney,
stock exchange president, to the
Senate Banking Committee this week
is the following: 1T is the purpose
of the New York Stock Exchange to
assist in every possible way in the
prevention of fraudulent practices
affecting stock exchange transactions.
excessive speculation and manipula-
ton of security prices" If this creed
had been adopted five years ago. and
consistently followed. there would
have been no bill in Congress to regu-
late the exchange.
Action Comes Too Late.
Because the officials of the stock
exchange have been stupid, had no
respect for public sentiment and were
poor psychologists, they have brought
upon themselves situation in which
the dominating factors are revenge
and a willingness to destroy what are
legitimate agencies in the business
life of the country. Too late, they
mood of the public. Obviously many
of the trivial and irrelevant features
of the Fletcher -Rayburn bill will not
be allowed to stand. Where they i'm
pinge on banking and industrial
policy remote from Wall Street asso-
citation. the bill will be amended.
There is no good. however, in ignoring
the fact that reforms are in the
making that will materially reduce the
volume of Wall Street business and
compel an entire recaSting OF the
affairs of that financial section of
this country.
If We were to accept the recent
action of the security markets as an
accurate barometer of business condi-
tions, it might appear that the first
impact of the gold revaluation and
the excessive gold imports was losing
its force in stimulating industry. The
index of trade, however, contradicts
this The latest figures of iron and
steel output are the best since last
August. The power production record
this week is even better than that
previously reported.
The railroad operating figures for
January show an increase OF Is per
cent In gross over the same period in
1888, with net income more than
doubled, due to greater Transports
ton efficiency. Wholesale trade has
been expanding. In spite of adverse
weather conditions, the turnover of
Jobless Problem Remains.
There is much slack to be taken
up, however. The latest figures of
the American Federation of Labor
show that more than 100000 men
and women are still on the unem-
ployed list. The Spring months are
being approached by the administra-
tion with anxiety. There is no evi-
dence today that the liquidation of
the C. w. A. on May / will coincide
with ready absorption Of its 100000
workers into legitimate industry.
Consequently, methods of assimilation
of a new type are being proposed.
A longer term Of guardianship Of
the chronic idle and Of those affected
by technical changes in industry must
be accepted. It Is not an extreme
view that $500,000, 600 of Federal
funds annually will. in the future,
be necessary to meet this pressing
social and economic problem.