The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-12-14
Trends
Financial Minds at
Odds on Question
Of Revival.
: By VINCENT S. LYONS
fines financial Editor


THE inability Of the financial
minds Of the country to agree
on the necessities for bringing
about a revival was best illustrated
in the last few days when four
persons, all prominent on the
American scene. expressed con-
trary views anent the economic
outlook These four we're Col.
Leonard P. Ayres. economist and
ce-president of the Cleveland
Trust Co.: Charles @. Dawes, for
mer Vice-President and director Of
the budget under Hoover; Lewis w.
Douglas. director Of the budget I'M
der President Roosevelt, who re-
Gently resigned, and Stuart Chase,
leading and widely known econ
omist.
Col. Ayres, in making his annual
forecast for the new year, painted
a very drab picture. This view
was not shared by Gen. Dawes, who
declared that Col. Ayres evidently
looks upon the Intervention of
changed governmental policy into
the situation as being definitely de-
terminative of the question as to
whether or not 1885 will mark an
advance in prosperity over 1884.
Il suggest that not later than
June or July of next year should
be the beginning of the great sus-
tanned demand for durable goods
due to the accumulation for five
years of postponed demands and
this time should also mark the
commencement of the year of full
business prosperity in the country"
Mr.. Dawes averred.
CPEAKING before the Economic
~ Club of New York. Mr.. Doug
las. in his first public address since
he quit his position with the Ad-
ministration, challenged the Roose-
welt recovery program. He urged
the end of all public works expen-
ditures and dissolution of the Civic
Conservation Corps, which, he said,
would permit balancing of the bug
get by 1887. =
The only way to recovery, he
argued, is in stimulation Of the
heavy goods industries by balanc-
ing the budget. Talking before the
same audience, Stuart Chase took
issue with Mr.. Douglas and said
that a balanced budget next year
could be accomplished only with
humping great income tax on the
higher brackets" His contention
was that individuals could not
spend enough to keep industry and
business progressing and that the
Government must step in and make
up the deficiency.
"A budget reSolutely balanced
next year." Mr.. Chase continued,
would result in more def1ationary
influences than stimulating inf1u-
ences. Physical production and
purchasing power would show a
net drag downward. Further de-
flation our economy can not stand"
A THOUGH his remarks pre-
IA eeded those of Mr. Douglas,
the former Vice-PreSident seemed
to feel that a balanced budget was
not the all-important thing. while
I recognize the overwhelming long
time Importance of a balanced
budget and wise governmental pol
ICY" he said. Il point out that
the normal course of recovery in
volving mass action is not deter
mined by human reasoning but by
human nature and that. the rate
of recovery is following the same
course in this present depression
and for the same simple causes
that it did in the two great former
major depreSSions in the country
of 1873 and 1898"
Thus, we have the views of a
former Hoover man, a former
Roosevelt man, veteran banker
and an economist. Their appraiSalS
are at variance at many points.
Undoubtedly, what all this proves
is that thu seem to be a grow
ing acceptance of some of the steps
taken by the Roosevelt Admins
tration. For a time recovery meas
ures were without a word of praise.
In recent months, however, a
change has taken place.
A NY Gloomy Gus with the con-
N viction that business is still
in the doldrums should have been
present yesterday afternoon at the
3sth-st station of the Monon Rail-
road. There he would have wit
messed a sight that bespeaks pros
perity and not the hard times he
imagines.
The spectacle consisted Of a spe-
cial train of AZ cars of farm trac-
tors. or a total of 400 machines.
which arrived here from the In
ternational Harvester Co. in Chi
cago. 1t represented the largest
single consignment ever sent out
by the company and the largest
shipment to Indiana since 1927.
Half of the tractors have been
ordered for early delivery by GEN.
trail Indiana farmers and the
others will be distributed before
next March. From this it may be
assumed that farmers in this state
are enjoying a certain measure of
prosperity. Farm income certainly
must have improved materially to
= Justify such an investment by
Hoosier farmers.