The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-10-25
THURSDAY. OCT. IS. 1881
NOT ENOUGH, Mr.. PRESIDENT

IF all that business needs is assurance that
the administration does not want to go
socialistic, then the Presidents speech to the
bankers convention last night should speed
recovery. But II restoration of business con-
fdence waits-as We believe-on definite
knowledge OF the administrations monetary
tax and economic program, then the Presi-
dent speech will not help much.
In promising to take the government out
OF competition with private banks and business
just as soon as the latter begin to DO the job
he said:
And when that time comes, shall be only
too glad TO curtan the activities of these pub
lie agencies in proportion to the taking up of
the slack by privately owned agencies. just
as It is 10 be expected that the banks will re-
sumo their responsibility and take up the
burden that the government has assumed
through its credit agencies. so I assume and
expect that private business generally will be
financed by the great credit resources which
the present liqudity of banks makes possible.
Our traditional system has been built upon this
principle and the recovery OF our economic life
should be accomplished through the assump-
ton Of this responsibility"
On the assumption that the tremendous
credit reserves are not being used for produc-
tive business because the bankers will not lend
these funds the President appealed to the
bankers to have more confidence in the people
and loosen up. This seems to us the minor
and not the major difficulty
For year the administration has operated
on the theory that the prime need was more
credit, and therefore has built up the gigantic
credit glacier which now overShadows the
country. But still the people will not use that
credit. The government has had little more
success than the banks in making that credit
flow out into the productive channels.
Despite this long and in many ways dan
gerous. experience in piling up unused credit,
the administration apparently still fails to
face the fact that the mass of business men
and home owners are afraid to spend their
cash and credit. This is not a capital strike
or boycott in any deliberate sense. The rank
and file of investors simply see no chance of
making profit
Before they put their money to work-in
new homes in new factories, in goods and
commodities and all the things which create
employment-they want to know what the
value Of their money is going to be. what their
taxes are going to be, what the rules of bust
ness laid down by the government are going
tc be. It is this uncertainty which is so
devastating
The people with money and credit to use
have not the least idea whether the President
viii succumb to greenbackism under con-
efessonal pressure or not; whether the Pres-
Cent will continue to avoid international stabil-
ization of exchanges and restoration of for
eign trade. or not: whether there will be in
creased taxation to cut down the dangerous
government deficit or not whether tariffs are
to go up or down: whether the government is
going to try to force the prices of materials
and wages up or down
Lacking that knowledge. the people with
money and credit are sitting tight and doing
nothing Wise or stupid, patriotic or I'M
patriotic, reasonable or unreasonable, that
causes the recovery impasSe and the admins
tration can not ignore or run away from it
without disastrous results
The truth is that this country can not 60
on much longer with ten million unemployed
They have to be put to work. And there are
only two ways. Either private industry will do
1t, or the government for Self-preservation will
have to do it. Either private capital must 60
to work. or the government will be forced to
so into business on a staggering scale.
We believe the President should put that
choice before the country so clearly that no
citizen can remain longer in the dark. We be-
lieve the people can stand the truth We be-
lieve the hard facts will produce action, while
the unnamed fears are producing only
paralysis. We believe that five years of low
production and underconsumption have Gre
ated vast potential market for virtually all
kinds of goods and services. We believe that
frank and vigorous presidential leadership
with definite program which the people I'M
derStand, would produce results.
We pay President Roosevelt the great COM
pliment Of believing he has that capacity Of
leadership. II he Will use it.
ANGL0MANIA