Evening star., 1934-12-26

Press comment generally approves
the statement of Lewis w. Douglas,
former director Of the budget, that
expenditures by the Government
should be curtailed and that efforts
should be made to balance the budget.
1t Is argued that definite statement
Of the purposes of the administra-
ton would give a new impetus to
business.
Mr.. Douglas position. according to
the New London Comm Day, is
based upon the economic reasoning
of the old school of conservative ex-
perts." The Los Angeles Times de-
scribes the former budget head as an
expert in that field and observes that
''his assertion that huge expenditures
on New Deal projects other than re-
lief are responsible for the national
deficit will not be easy to challenge"
The Times advises that 'the country
should have either a plain statement
of fiscal policy or sound reasons why
it cannot at this time be formulated"
Supporting the Roosevelt admins
tration, the Roanoke Times AYERS:
"Mr. Douglas voices the criticism of
those who feel that the Roosevelt
administ1 alton is altogether wrong in
its approach to the recovery prob
lem. However, it is unlikely that
anything he can say will deter or bring
about any change in the administra-
ton program. Mr.. Roosevelt and his
advisers have their plans formulated,
and they will put them into effect
regardless Of criticism. They feel, and
there is considerable basis for the
feeling, that the sweeping majorities
in favor of the administration in the
recent election constituted an unmis-
taxable vote of approval and a man
date to go forward with their pro-
gram"
The Wichita Eagle refers to the
former budget chief as belonging to
that school Of thought which believes
that there is only one way to stability,
and that way is balanced budget;
that any departure from it imposes
grave penalties" The Eagle adds, how
ever: Douglas must be puzzled. The
budget has remained unbalanced, and
the currency can hardly collapse when
Government credit stands adamant
against mounting borrowings to a
height America has never experienced
previously, and with Government bond
prices towering in the market place
with every new Offering"
He insists, says the Newark
dence by capital is the greatest eco
nomic need. His remedy is partially
balancing the budget in 1886 and
completely balancing it the next year.
1t is possible to subscribe to the
Douglas theory without accepting as
final the dates he suggests. They may
be little arbitrary in the light of
the administrators engagements 1t
is, nevertheless, perfectly obvious, as
Mr.. Douglas insists that capital is
afraid, and that its chief fear is in
flation - We soon must have
a definite line CT demarcation between
what the Roosevelt administration
has done as emergency measures and
what are to be regarded as perma-
nent. If business in the heavy goods
line Is ready to start up, once safety
from imitation is assured, there ought
to be substantial easing of of strict
ly emergency governmental work"
''It is not unreasonable" in the
judgment Of the Joplin (Mo) Globe,
ito conclude that at least a modicum
Of personal pique enters into his dole
full prediction at this time, but it
may also be concluded he really sin
cerely feels Uncle Sam Is spending
himself into trouble rather than into
recovery" The Dayton (Ohio) Herald
comments: Reports that the Presi-
dent win pare the requests Of Federal
departments and emergency agencies