The Washington times., 1934-12-21

ed out thaC #
EN- p loyment A "@<>>|A
Is reduced by Lewis Haney
increasing the cost Of products
to consumers.
1t is stated that unemployment
reserves must be accumulated
before available, which takes time
and prevents such reserves from
helping in the present problem.
The immeaSurable Importance
Of a standard dollar having a
fixed gold content, is stated, and
also that of a banking system
freed from political manipulation.
2. The great political danger
of extending the activities Of
the Federal Government is
emphasized.
We are warned that "relief"
is not wisely made a function
of any central government.
Similarly, the Federal Govern
ment should not attempt to
control local relations between
employees and employers.
Government competition dries
up the sources of its own sup
port" says the repOrt-where
will taxes or loans come from
when business is killed?
8. The report preesnts a def
mite fiscal program for the
Government, involving Cd
avoidance of increased debt.
(2) plans to produce bal
anced budget in 1887. 1t says:
"The best information avail
able indicates that further in
crease in the public debt be-
yond June 30, 1885, can be
avoided. A reasonable program
of emergency relief expendi-
lures can be financed without
debt increase in the fiscal year
1885,"
This requires limiting emerg-
ency relief to an indispensable
minimum" It also requires limit.
ing all emergency activities next
year to the expected surplus of re.
ceipts over ordinary expenditures
plus repayments made by lending
agencies.
projects for Government
spending initiated to increase
purchasing power or to create
business would retard rather
than aid recovery"
"a A chief problem centers in
the capital goods industries. The
requisites for solving this problem
are stated to be: A free flow of
private capital into private busi-
ness; a sound real estate mort
gage market; low construction
costs; the limitation of Federal
building activity to strictly non.
competitive fields.
50 The more questionable fea-
lures of the report are its insist
ence on the cartel Or "code" or.
ganization of business, and the at
tempt to cooperate" with the
New Deal Administration.
The business leaders want to
organize as cartels. and to be re-
lieved from instability of mar
kets" and price decentralization" "
They want the Government to
sanction binding agreements con-
cerning production and prices.
But they should have learned
that they can't have this and at
the same time keep Government
out of business.
They keep up the pretense of
cooperating" with the New Deal
ers, when it is obvious that they
stand for individual initiative
and the profits system, while the
New Dealers stand for social
planning" and production for
service"
The best policy for business
leaders is, first, to put their own
house in order by restoring the
competitive efficiency upon
which the whole justification
for their existence depends.
They must give us low prices
and low costs.
That may mean lower salaries
and some failures and reorganiza-
tions. But if we want to save
business" we have to let some
particular businesses" go through
the wringer.
Then, let the sound and eff.
cient business leaders point out
to the people the great weaknesses
of political management of indus
try, and remind them that we
have had sound prosperity under
business leadership, and can have
1t again.
Whenever you want to know the
correct time Of day or night tele-
phone District 1000, the office of