Evening star., 1934-01-21
National Leaders Now Beginning to
Worry About the Next Business Boom
BY OWEN L. SCOTT.

BY OWEN L. SCOTT.
Strange as it may seem at this stage
OF the depression, some Senators and
some Government officials are begin
ming to worry about the next business
boom
They think that they see one COM
ing. II they are right. it Is to grow
on the base of the new 60-cent dollar
and In It's early stages will be fed by
the huge emergency expenditures that
now are flowing out Of the Federal
Treasury at the rate Of $4,000, 900 a
day or about SIS 900 100000 year.
This thought of boom raises new
problems for the economic planners.
They have to figure out whole new
set of controls to take the place Of
those that have been used to jar the
country out Of the depression.
Senator Elmer Thomas, Democrat, OF
Oklahoma has turned his thoughts to
these problems. Senator Thomas gave
the country the amendment to the
agricultural adjustment act that Is be-
ing used by President Roosevelt to
make dollars more plentiful.
The Oklahoma Senator Is so conf
dent Of his money remedy that he now
has turned to thinking out ways to
keep 1t under control. In that think
ing he Is Joined by several members OF
the brain trust and some other
Congressman.
But President Roosevelt still seems
principally concerned about having a
boom to control. He is now putting the
finishing touches on his plan for eco
nomic recovery that has been 10
months in preparation. With In, Mr..
Roosevelt believes he can rock this
country of dead center and start it
rolling rapidly toward better times.
Then II it becomes necessary to ap-
ply checks. they can be applied with
out too much trouble. Such Is the
thought.
Actually the big push is Just getting
under way. Until now the task has
been to bring industry under codes. to
prepare plans for farm bounties and
production control, to allot the billions
in public works funds and to strength
en- the capital structure Of the coun-
try's banks All of these preliminary
tasks have been brought near to COM
pletion.
Now the actual spending is to start
In earnest To meet the Presidents
expectations. this spending will have to
be at the rate of about $44 900 900 a
day for the next six months. And to
top of the program. assuring enough
dollars to keep up that pace, money is
to be made cheaper In terms Of gold
Or, in other words, the country's gold
supply will be stretched so that it can
serve as a broader base for new cur
rency and new bank credits as they are
needed.
It all follows q pattern which the
President figures will come out in the
form of greater demand for goods,
higher prices for commodities. and.
finally enough stimulation for private
business so that industry will be able
to absorb the millions of wage earners
now without regular jobs.
Judged by the attention they have
received, money and banking hold the
key to the recovery program.
Banks now have been strengthened
until most Of them are better able to
carry on their business than for many
years. The Reconstruction Finance
Corporation has poured about one bill
lion dollars into the country's bank
capital, taking preferred stock in re-
turn. Deposit insurance has eliminated
the prospect of runs on banks and has
tended to bring money from boarding.
The Home Owners Loan Corporation
and the Farm Credit Administration
when their bonds are made direct OBJ
legation of the Government-win be
able to unfreeze q lot OF mortgage paper
held by the banks.
With q cheaper dollar and the pros
pect of rising prices, bankers Will be
able to look ahead and resume the
financing business, instead OF devonng
their time to collecting old debts and
liouidating old enterprises. Such at
least, Is the thought Of the Govern
ment planners.
Then in another field Of trouble
farming-the Government Is ready Tor
a big push It intends to pour about
one billion dollars into the pockets OF
four or five million farmers. Tnls
money will be in addition to any In
creased income the farmers can obtain
as a result of the cheaper dollar ana
the price rise that may follow. 1t Is
the reward given for the promise to cut
down production of principal farm
Farmers are also being put in condi-
tion to take advantage Of the better
times that may lie ahead through re-
financing of their mortgages on q
cheaper interest basis.
In addition to the billions that are
going to banks and to farmers, pubic
works projects are to absorb 81, 3OO,-
O0O, 900 between now and July l. This
money has been allotted and the Gov
ernment Is now trying to get 1t spent
In q hurry.
Coupled with another $500 ,00o, 900
that will be paid out In checks to civil
works employees, the public works money
represents the grant made by the Fed
eral Treasury to start city enterprise
functioning on its own once again.
This money goes quickly into spending.
It may be increased If Summer finds
that millions of city workers are still
unable to obtain jobs. However, Presi-
dent Roosevelt hopes to wind up the
C. w. "A. by May l.
Gen. Hugh johnson and his N. r. A.
flt into the whole spending picture,
but not Is the source Of funds.
Rather, the Blue Eagle is to be the
governor that sits above industry and