The Washington times., 1934-11-20

year ago, be- :%
cause last No Vs.,
vember it was Low" Nancy
falling to the low point OF the
1888 recession.
Commodity price n ementS
remain inconclusive, \ last
weeks gains in grains and foods
raised the averages trltle, de-
spite declines in lead and zinc, ana
cotton.
With labor agitation quiescent,
monetary experiments shelVeo'
and everything set for pushing
"credit initiation" it seems like
" that business activity will SHOW
q moderate increase.
This is particularly true in view
Of the cooperation" between the
President and the business lead
ers," which has now broken out.
On the one hand, business
leaders now find Richberg to be
n good fellow. Even Mr.. Strawn
of the u. S. Chamber of Com
merce can find some good in
the New Deal. Mr.. Whitney of
the Stock Exchange finds that
SEC is not SO bad.
On the other hand, Administra-
tion spokesmen are encouraging
business men to hope for profits,
and no criticism of bankers is
heard. The President is to have
regular talks with the planning
council" of business leaders, or
ganized under the Department. OF
Commerce. $50 he can hear what
business wants"
And a number of steps have
been taken which are calculated
to postpone monetary fears and
restore business confidence. One
of the chief of these was the Presl-
dents statement that schemes OF
social insurance should for the
present be confined to unemploy-
ment, and that unemployment IN
surance should not be mixed up
with relief"
Then, too, the Federal Reserve
system has made loans to gold
bloc" countries, and the nominal
restrictions on exports OF Amerl-
can funds have been withdrawn
except on gold. These steps sug-
gest that the New Dealers do not
want France to go off gold, and
that they do not propose to de-
value the gold dollar any further
for the present.
The general idea seems to
bs to get things in shape 30
take the wind out of the sails
of the Congressional wild men,
and to produce "credit infla.
tiOn' as soon as possible. If
business activity can be Stimu-
lated and bank deposits be put
into circulation, a Crimp will
be put in the more radical
technique, such as greenbacks
and general debt reputation.
The aim is to facilitate govern
ment spending without a resort
to greenbacks, and to save some
thing of the profits system (out-
side the utility" field.
In fact, the President has gone
so far as to say in a recent
speech that the Tennessee Valley
is not being Federalized or
regimented. He says that what
he is doing is community rugged
individualism." But obviously he
should have said "rugged-com-
munity individualism"-which is
a contradiction in terms. You
can't have both rugged COM
munities and rugged individuals,
One of the outstanding develop.
ments of the week was the gen
eral realization that the New Deal
ers have doomed private enter
prise in power and light. The
President stated that the practice
of Tupelo, Miss, in getting all it's
power from a Government power
plant "is going to be copied by
every State in the Union before
we get through"
The threats made by Ickes to
the oil men suggest that the oil
industry may be next.
Another and a related devel-
Opment is the increased GER
tainty that huge Government
spending financed through a
Government-cOntrOlled banking
system, is more certain than
ever.
This is what the selection by
the President of Mr.. Eccles as
governor of the Federal Reserve
Board means. Eccles believes in
putting bank credit into circu-
latiOn by means of huge expen-
ditureS for public works, re-
gardlesS of Government deficits
The President selected him.