Evening star., 1935-01-27
British Opinion of
Americas New Deal
BY A. G. GARDINER.

LONDON, January 26-Whither
America? is a question which is en-
gaging unusual attention in the Eng
Iish press in view of the staggering
deficiency forecast in the Roosevelt
administration budget proposals.
The general tone of the comments
is one of serious disquiet. Many
critics, while approving Of the Presl-
dents stern determination that the
New Deal shall not be synonymous
with the old dole. see in his colossal
program of public expenditure the
portent of disaster.
It is admitted that the population
of the United States is nearly three
times that of this country, that its
public debt per head, even including
the indebtedness of the separate
States, Is much smaller than ours.
and that the level of taxation IS still
substantially below ours. But, as the
London Times points out, the United
States has suffered a far greater con-
traction of money incomes than Great
Britain. and this implies two things:
Cd Inability to increase taxation,
however great the deficit in the budget;
(2) far more public expenditure is
needed TO restore the normal balance
between production and consumption.
On the other hand, 1t is pointed
out that the resources of the United
States are so vast that, once the
upward movement is really under
way, the buoyancy of the revenue and
the reabsorption of the unemployed
into industry should very quickly re-
store budgetary equilibrium.
x**
This Is the more favorable view
The more critical is represented by
the London Daily Telegraph. "The
Americans are bold and inveterate
gamblers" says that journal. But
surely $500, 100000 is a hazardous as
well as a record raise in such condi-
tons. The Treasury of the United
States has not known surplus since
1890 It is estimated that altogether
e., ,807, ,000, 900 has been expended on
the New Deal, and now another $780,
000, 900 is wanted for colossal relief
works. How far will it go? If that
sum is divided by the 3,500,0 900 unem-
ployed who are to be found work in
stead of the dole, it represents f203
per head.
knowing what We do of the cost
of relief works, that f800, ,00o, 900 will
be found totally inadequate and moth
ing like 3,500,000 will find employ
ment. Moreover, 100000 others are
being turned back on to the relief
rolls of the separate States. No one
doubts that the United States can
carry a natural debt Of $500, 900 900
in 1886 if Great Britain can stand
UP to one of 100000. But if
ANYTHING like the rate of increase Of
the last few years continues, We do
not see how the United States can
be maintained"
BY common consent the enormous
size of the prospective deficit shows
plainly how far the President still is
from having realized the hope ex-
pressed a year ago that the budget
would be balanced in 1886, and an
increasing element of doubt Is felt in
his adventurous and empirical meth
DDS. On this point the statement Of
the London News Chronicle that
America stakes her future on J. M.
Keynes" and that Mr.. Keynes, through
his influence on the President, will
bear large responsibility for the fate
Of 100000 900 Americans during the
next two or three years" Is the subject
of critical comment.
No one here questions Mr.. Keynes
remarkable gifts, but we have long
since come to discount his wayward
genius and his rather irresponsible
passion for experiment If only to see
what happens. Even Mr.. Lloyd George,
who is formulating New Deal for
this country in the hope of achieving
a political resurrection, no longer
looks to MIR. Keynes for inspiration,
and Sir Ernest Benn in the Independ-
ent publishes a ruthless and devastat-
ing examination of Mr.. Keynes claims
to the respectful attention of the
President. He recalls the fact that
Mr.. Keynes was the chief author of
the Lloyd George schemes to cure
unemployment in a year which the
British electorate rejected with such
whole-hearted emphasis.
10QEl