Evening star., 1934-11-11
Voters Apparently Unafraid
of Initiation Talk or
Budget Outlook.
FARM BUYING GROWS
AT REMARKABLE RATE
Effects Of Housing Program
Spread, but High Costs and
Terms on Loans Are Checks
BY CHARLES F. SPEARE.
Special Dispatch to The Star.

BY CHARLES +. SPEAHE.
Special Dispatch to The Star.
NEW YORK, November lo.-Look-
ing at Tuesdays elections from the
standpoint of the country at large.
rather than that of Wall Street, 1t Is
clear that the economic and none
tary policies of President Roosevelt
have been given strong sanction.
There has apparently been less anxie-
ty than had been supposed over the
effect Of dollar devaluation or the
possible extension of this to level
where currency imitation might be
serious.
The voters have likewise not ex-
hibited alarm concerning the mount
ing expenses of the Government, dis
playing cheerful, if undue optimism
that somehow the national budget
will be balanced before the credit Of
the Government is impaired.
The defeat in California Of Upton
Sinclair emphasizes the fact that,
while the American people have be-
come more nberal-minded with re-
spect to economic and social policies.
they are still unwilling to subscribe
to doctrines that SAVIOR Of Commu-
nism. So capital, terribly frightened
for a while by what it feared might
happen on the Pacific Coast, is more
composed and satisfied than it ap-
peared to be week ago.
Trend Of New Deal.
The administration having been
given the vigorous support of ma
jority of the voters, the business and
banking world now inquiries what use
it will make of it. Because its liberal
policies have been approved, will it
become more liberal? Will Congress
in its new party majorities demand
more of the kind of legislation that
the vocal elements of the public are
supposed to want or will it become
more cautious in suggesting laws that
alarm those who employ labor and
so further retard recovery?
Undoubtedly, with the elections
over, interests that see no escape from
steady deflation. except by the process
of lifting the price Of gold and bring
| ing the level OF commodities to that
of 1926, will press their claims on the
administration with more vigor. There
is not, however, in the new Congress
enough change from conservative to
radical membership greatly to affect
the policies with which President
Roosevelt and his cabinet have been
identified.
The elections probably have been
factor in deferring business commit
ments. Now that they are over and
the results have been so definite, de-
layed orders will begin to appear in
wholesale and retail trade. The iron
and steel ratio of production Is up
this week and Is at the best level since
| the end of July. A gradual broaden
| ing out of the automobile industry is
to be expected through the remainder
Of the year.
Farm Purchases Growing.
Quite remarkable returns are being
published Of the turnover of the chain
and merchandising stores. Those Of
Montgomery Ward were 80 per cent
greater last month than in the same
/ period of 1888, which reflects, among
other things, considerable degree
of purchasing power among the farm
ers Gains of 10 to 26 per cent are
shown By other distributors dealing
in special lines Going back to Sep
tember we find exports 80 per cent
in excess of last year and 40 per cent.
| or S460,000000. greater for nine
months than in the first three-quarters
| of 1888.
Gradually the impact Of the hous-
ing program is having its effect on
the building trade, as each week wit
| neSseS more banking aff1liation with
it, but the scheme is still handicapped
by the high cost of labor and ma
terials and the onerous terms imposed
on the borrower. There should be q
way found to relieve him of the ex-
cess charges for service and insur-
ance, bringing his interest cost down
actually, rather than academically, to
per cent.
For interest rates should come down
where they have been maintained at
old levels. There is a glut of unem-
/ ployed capital. The lender by hold
ing to traditional returns is reducing
his income when he may pick and
| choose in markets that offer him
sound security if the rate is reason
able. In all probability this will be
the situation for an indefinite period.
1t is not only true in this country
but abroad, where this week British
consols, the register of the money
market trend, have advanced to the
highest prices in rs years. And again
this week the action Of prime Amer
ican corporation securities gives no
hint that they are to be disposed of
and the proceeds placed In common
stocks.
Social Legislation Expected.
It is with the hazards Of the in
dividual that the social philosophy
OF today is concerned-those of sick
ness, accident, unemployment and
the inevitability of more or less de-
pendent old age. Congress will un-
doubtedly be called on to deal with
them at its next session, and, as
the position of President Roosevelt
on this general question has long been
known, it Is fair to say that Tuesday s
vote was, in part an expression OF
approval Of the humanitarian phase
of his general economic and social
policy.
The prospect Of Federal and State
legislation along the lines of employ
ment insurance and old age pensions
will incline to make business timid
in spite of the notifications Of the
N. r. A. codes, the better feeling
established between Washington and
Wall Street and the evidence that un-
trained economists are now taking q
smaller part than q few months age
in fashioning the ideas Of the Govern
ment.
] (Copyright. 1884. by the North Americas