The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-11-30
STUDY VIEWS
ASSURANCE IN
RICHBERG TALK
Two Recent Speeches Seen
Blow to Hopes of
InfIationiSts.
BY JULES BACKMAN and A. L,
JACKSON

BY JULES BACKMAN and A. l..
JACKSON
viee-Presidents. Economic Statistics. Inc.
NEW YORK, Nov.s 3O.-During
the last week Donald Richberg, who
is considered second in command
of the administration, made two
significant speeches-one in At
lanta and the other here. In his
Atlanta speech he criticized infla-
ton as a quick remedy which
would not cure the intoxicated fol-
lies Of 1929"
This statement, recognizing the
ineffectiveness Of initiation as a cure
for our troubles. is a significant de-
velopment, especially since it is ex-
pressed by man so close to the in
ner circles as Mr.. Richberg. 1t
comes at a time when the infla-
tionists, including the Sound
Money league, committee for the
nation. the Radio PATROL" and the
senate bloc, are organizing their
forces for further devaluation of
the . dollar, conversion of govern
ment debt into currency, etc.
Credit Initiation Possible
Mr.. Richberg's statement may be
taken as an indication that currency
initiation is definitely out of the pic
ture for the immediate future. ut
might be added, however, that in
light of the huge excess reserves and
the large amount of unusued gold
that credit initiation is still a dis
tinct possibility
In his New York speech several
very reassuring remarks were made
to business men. He pointed out that
an arbitrary reduction in hours of
work brings about dislocation in
costs, because of the disproportion-
ate increase in labor costs to diff
ferent companies. This seems to be
a definite rebuke to the advocates
CT the thirty-hour week.
In addition he. suggested that the
Houde engineering case (majority
rule) had been misinterpreted by
both capital and labor, and that it
was his impression that the ma
tional labor relations board had not
ruled in favor of majority rule in
this case. His Interpretation on this
point, which has been a sore one to
business men, must also be viewed
as a definite reinsurance to buSi-
ness.
Against Arbitrary Rules
He also suggested that the arbi-
trary imposition of fair practice
rules is impractical. He further
suggested that these rules could be
adopted only after they had been
sanctioned by custom and that it
was up to business to determine for
itself what these fair practices
should be.
These statements, when combined
with Mr.. Richberg'S recent oppoSi-
ton to price fixing and production
control, are certainly hopeful signs.
If it can be taken to represent the
administrations viewpoint -(and it
seems unlikely that the M. 2 man
Of the United States would speak
without Presidential approvaD, then
it is indicated that the adminiStra-
ton is tending to follow a more
conservative path in its economic
philosophy.
(Although Mr.. Richberg also
threatened that unless business
takes on the unemployment the
government will do so itself, the
foregoing remarks must be taken
as the more significant features of
his talkO
No course will do more to inspire
confidence on the part of business
than carrying out the policies sug-
geSted by Mr.. Richberg. Experiment
has had its day; let us give expert