Evening star., 1934-03-04
Nicholas Roosevelt
Continued From First Page)

planned economy. PrOductlOn Is 70
be controlled. It Is to be adjusted to
consumption. Certain industries are
to be protected from foreign competi-
ton. Others are to be sacrificed so
that foreign markets may be won or
kept for certain favored agricultural
producers. Ours IS an era Of economic
nationalism, we are told. In world
of nations trying to live unto itself
we also must be self-suff1cient. We
must produce what We need. II this
necessitates fundamental changes in
those industries and those branches
of agriculture depending on foreign
trade these sacrifices must be made in
the interests of the Nation as a whole.
Logic demands control, a plan, a
schedule, chart.
At first glance such a planned
economy is so reasonable that few will
oppose it, but study shows that a
planned economy means. to begin
with, a national planning body-which
means brains, great brains, such
brains as We have not yet known,
coupled with infinite wisdom and
with extensive practical experience.
It calls for a combination Of Caesar,
a Socrates and Solomon, presiding
over a harmonious body OF broad
gauge experts above party or per-
sonal interest.
Propaganda Needed.
A regimented plan of this Cont
mental Nation of 120,OOO,0O0 people
having been devised by this body OF
super-planners, it then remains to
put it into effect, which requires a
hysterical wartime propaganda OF en-
forcement, backed by Federal agents
more powerful and effective than
were our prohibition sleuths.
But-and this is the most impor-
tant of ALT implies the curtall-
ment of the individuals personal lib
erty. It means the creation OF q
more or less static society in which
every one has his fixed place and all
activity conforms to the interests OF
the state-or, to be more strictly &C
curate, are In accord with the wishes
of the planners. 1t means in the final
analysis submission to the dictates OF
a small group of Federal bureaucrats
enforced by an army OF Federal agents
throughout the Nation.
With this philosophy OF society IN
mind. it IS easier to understand some
of the measures of the new deal
which have long been puzzling to the
Presidents own party. II we accept
the philosophy We need no longer be
disturbed by its application. II a
planned economy is desirable or IN
evitable, then such measures as the
N. R. A., the crop-reduclng program,
the control Of industries, the fixing OF
prices and the control of credit may
be regarded as fitting into the frame
of a far-seeing and wise plan. Incl.
dentally, the concept OF planned
economy, implying as it does eco
nomic nationalism, explains the flasco
of the London Economic Conference
The President saw that to agree 10 a
worldwide tariff accord would inter-
fere with the plan for economic ma
tionalism. So, also would stablllza-
ton of the dollar by international
agreement at that time. Unblusnlngly
ignoring his earlier assurances to MI
] Ramsay Macdonald and former
premier Edouard Herriot, the Presl-
dent. therefore, deliberately sabotageo
the London conference. Economic
nationalism triumphed over nationai
honor.
Hand in hand with the philosophy
of a planned economy goes the theory
of redistribution of wealth, which 9
few fanatics among the new dealers
have even carried SO far as to envlsion
the abolition of profit. Part OF TINS
philosophy implies that the creditor
should shoulder a substantial part OF
the debtors burden. Tied up with tne
problem of debt was the mania 1oi
price raising, which in turn led to cur
rency tampering. The President, heed
ing only the advice Of those who IN
sisted that past experience in economic
and financial affairs was handicap
rather than an aid. permitted the I'M
practical theorists to experiment with
the dollar, in the apparent BELIEF tina!
by lowering its gold content internal
prices would rise correspondingly. BY
cheapening the dollar it was expected
at the same time to reduce the burden
of debt.
Need Is Profits.
But the professors overlooked the
fact that debts are paid not out OF
higher prices, but out of larger profits
They failed to see that If the prices OF
goods purchased rose as fast as the
prices of goods sold the average indi-
vidual would be little better of than
before.
More than any other part OF the new
deal, the Presidents currency ano
financial policy was a shock to all
thoughtful people who were familiar
with the currency experiences OF other
countries. Without considering the
technical questions as to whether II
was either necessary or advantageous
to go off gold, it cannot be overlooked
that the prolonged uncertainty as to
the extent to which the dollar would
be devalued discouraged investors and
bankers from extending credit and SO
retarded recovery. At the same time
the reputation of the gold clause
struck a heavy blow at all credit. 1t
impunged the good faith Of the Gov
ernment of the United States. It set
precedent for the breaking OF other
contracts. It shook confidence In the
sanctity of agreements.
The administration took step after
step that dismayeo and alarmed the
thoughtful. It ignored the opinion OF
great experts on monetary problems
like Profs. Kemmerer and Sprague,
1t accepted gladly the retirement OF
such experienced advisers as James p
Warburg, Dean Acheson and Earl
Baillie. It refused to heed Carter
Glass. It did all but actually repudi-
ate Lewis Douglas, one of the most
capable, clear-headed authorities on
budget problems in the country. When
a new Secretary of the Treasury was
needed the President chose an amiable
and charming gentleman who had nc
financial or banking experience.
Not until it became at last clear to
the President that the experiments OF
the professors were not only failing to
produce the promised results. but were
actually endangering the borrowing
capacity of the United States Treasury