The Washington times., 1934-09-25

d: y
now ended. The
drought played
. part, and ~
that is also Lewis Haney
history.
So we find steel production up
more than usual for the season
Automobile sales have staged q
little squirt. In general, retail
and wholesale business has gained,
as measured by dollar sales. Com.
modify prices at wholesale aver
aged slightly higher.
To be sure, many observers see
in this the insidiouS creeping in
of initiation, with Government
spending as the chief factor, and
with this opinion I agree. We
must remember that buying based
on a distribution of Government
credit by politicians is not good
basis for sustained business. But
it will generally be regarded as
reassuring that the recession in
activity now seems sure to stop
above the previous depression low
points, and to show at least a
seasonal rally.
The outstanding developments,
however, are political and senti'
mental. I would sum them up as
follows:
~ The recognized failure Of
New Deal expedientS to function
Is planned.
NRA as q broad general
scheme Stabilizing and Stimulat-
ing BUSINESS has broken down.
Price fixing and labor policies
are in confusion. Considering
the season, unemployment has
increased. johnson is prac-
ticalIy out. Enforcement Of the
codes does not exist in many
eases.
AAA is in confusion and try.
ing to reorganize its schemes.
Even the farmers are diSSatiS-
fled with the way the processing
taxes have worked and the
author of the Bankhead bill
wants it repealed.
Trading with Russia and
reciprocal tariff" schemes
have got nowhere, and do not
promise to do so.
Silver buying seems to have
gone the way of the preceding
gold buying.
The attempt to convert Lib
erty bonds into shortterm debt
is failing, and the whole refund.
ing episode shows the precarious
position Of Government credit.
So business men are diScOn-
tented. LabOrers are discOn.
tented. Farmers are diScOn-
tented. The Committee on the
Nation is disconnected. The
crop Of panaceas for economic
ills is growing rankly again.
The admission that relief ex-
penditureS this winter will be at
least as large as ever, and the
proposed resort to lotteries for
raising funds IS confession that
schemes of indirect relief and
artificial recovery are not sue
ceeding. The borrow now drive
for residential building is a con-
fession that dollar tinkering and
piling up bank reserves have
failed.
90 The courts are showing
signs Of more backbone in up
holding the Constitution. During
the week, decisions in Maryland,
Kansas, and Oklahoma have gone
against the Administration. They
are not Supreme Court decisions,
but are Straws showing the wind.
The Frazier-Lemke farm credit
moratorium bill, the oil well drill
ing curb in the petroleum code;
and the granting of loans to
municipalities for building COM
peting utility plants, were the
points Of attack.
In this connection, the decision
Of Government official against
spending certain public money
for making the spectacular forest
belt" in the Western drought Sec
ton, is to be noted.
3. Business men show signs OF
bucking up and organizing for
defense. The Federal Reserve
Advisory Council demanded a re
turn to sound money. Manu-
facturers planned a national
organization to study NRA. The
railways organized on a national
scale for the defense and de
velopment of their business.
4. On the other hand, there
are signs that many people still
want to go on with radica,
schemes for social reform, espe
cially when these involve passing
around other peoples money
{ Schemes for putting the Govern
ment into business and paylne
the bills with paper issued by 8
"great central bank" are very
much alive. Political expert!
now concede a radical" Congress
RUBBER STORES
Stocks of crude rubber in Lon