The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-10
The Coming Boom
BY THOMAS L. STOKE

II OOSEVELT administration officials interest
N ed in the Coming American Boom articles
now appearing in The indianapolis Times be-
lieve that any implications of speculative era
of quick profits should not be taken too seriously.
AS regards fundamental economic recovery
the administration welcomes optimism, for it is
bending every effort to promote stable recovery
that will reach to all-not to just a few who
might reap paper profits from speculation. But
Speculation won't put people back to work.
is the way one high official put it.
A determined stand against any speculative
orgy was the major reaction of a number
of treasury officials and economic experts who
we're interviewed and who gave their views prl-
vately. Added to this is President Roosevelt's
reiterated denuncation of speculation and his
statement that prices must not rise too far and
that recovery must be gradual and may take
one two are three years.
officials objected to the apparent underlying
emphasis of Major Angas on speculative aspects
The Roosevelt program, they pointed out, aims,
not at speculation, but at a gradual restoration
of all the people, through the various agencies
NRA, AAA, PWA and the hke-to a state OF
permanent prosperity. 1t works through long
time investments in homes and security to
achieve this.
The English economic forecaster, they said is
wrong in regarding the Roosevelt monetary pol
icy as the core of the administration program
1t is part, and an important part, but equally
important are the various phases which have to
do with human welfare and reform
T0HEY gave the British pamphleteer credit for
Il insight in his conclusion that the Roosevelt
program is a well-integrated PLAN with the parts
all fitting together, and not haphazard scheme
His major theory of an inflationary boom is
based largely on the huge store of excess federal
reserve member bank demonstrating now APP
proXinately 1000 900, record for all time
which he says, remain only to be touched off,
/ Treasury and federal reserve officials are
aware fully of this possibility which carries cer-
tain dangers of which they likewise are aware
They have pointed out the existence OF these re-
serves which represent the excess in banks above
| legal requirements for some months. Thus fal
| they have not been touched of.
That this credit is beginning to move out
finally, after months of hesitation on the part Of
business to seek loans and, in many cases, the
caution of bankers in granting them, is indi-
Gated in recent reverse Of loans and discount;
| from a decrease to an increase. This SHIFT &C.
CURED four weeks ago.
For weeks Chairman Jesse Jones Of the Re-
construction Finance Corporation has been wait
ing for business to come to the R. F. c. and the
federal reserve banks for loans to industry Thus
far only about s15,O000OO has been advanced
WHILE desiring to encourage loans to re-
w vive sound industries, the administration
will act to prevent any flood of money into specu-
lative channels. For this it has numerous
brakes" at its disposal.
1t is known to be President Roosevelts pur-
pose to prevent uneconomic expansion which is
costly and wasteful. He has deplored publicly
| likewise, the speculative stock market furry OF
last July as the sort of thing which the admin
istration will guard against.
officials pointed to errors of fact by Major
Angas in his book. not highly important in
themselves. but indicating less familiarity than
he assumes with the American experiment. He
seems to think, for instance that the stock mar
ket act is part of NRA; he cites expenditures
of only s3O0.000000 for the Civil Works Admins
tration and on the same page lists expendi-
lures for relief. mostly CWA, at 1,400 600 900;
he speaks of financing NRA, which is financed
by industry except for ordinary administrative
| expenses.