Evening star., 1935-08-22
COURT CREDITED
with TRADE GAIN
Business Confidence Traced
Ito Supreme Tribunal
: N. R. A. Decision.
BY DAVID LAWRENCE.


has made of legislation. Why, it may
be- asked, is business improving and
confidence returning in the face of
threats to the economic structure by
New Deal laws?
The answer is that the Supreme
Court of the United States on May 81
last in a unanimous opinica re-
afirmed the fact that we are still
functioning under written Constitu-
ton and that the rights Of the indi-
vidual will be protected to the full
extent of judicial power against
usurpation by Government.
The far-reaching character of the
Schechter case decision and the
stimulus 1t has given to business and
industry was not as widely accepted
Immediately after the opinion was
rendered as it is today. There is on
every side now an admission by busi-
ness men that the real reason they
are going ahead is because they feel
the Supreme Court will hold invalid
the balance of the New Deal program
as it touches on property confiscation,
misuse of the taxing power, and at
tenpts to do by indirection that which
expressly forbidden by the Consti-
tuition.
Previous Comment Recalled.
Lest it be contended that the reason
for the confidence underlying busi-
ness progress today is just an after
thought on the part Of business men,
the reader is referred to excerpts from
dispatches written by this correspond
ent Immediately after the Supreme
Court decision, when business was still
in Spring slump and when the out
look for a Summer drop had been
generally forecast by economists ana
Commentators on business subjects.
Thus. on May 30-three days after
the Supreme Court decision-I re-
ported the following:
Business throughout the country
is responding with sensational Vigor
to the impetus given by the Supreme
Courts definition Of constitutional
Government
.Long-term financing can now be
done. Commitments can now be
made. The rules to be followed are
those in a written Constitution. Arti-
f1ciality has been dealt a solar plexus,
From now on recovery by natural
means is not only possible but 1t
will afford a release to pentup energies
Of American trade and commerce.
For there is no means Of measuring
IL. 70 which
uncertainties over the constitutional
ity of New Deal laws have brought
Today business breathes the fresh air
of healthy competition.
For a few weeks there may be
some confusion due to a readJust-
inent to the new circumstances, but
on the whole, business will move Tor
ward in the direction of a steady
and substantial recovery"
Two weeks later-June 14-this cor
respondent in a further analysis OF
information derived from different
parts of the country wrote the fol-
lowing:
. Enough time has elapsed since
the Supreme Court decision on the
N. r. A. to survey the effect on
American business and industry, and
it is growing clearer every day that
the decision has given an impetus to
trade which is likely to be reflected
in an increasing volume toward the
end of the Summer and IN the Au-
tumn. From all parts of the coun-
try, business men are reporting re-
vival of confidence and a renewed
activity.
Momentum Is Real.
"The truth is, American business
and industry have real momentum
now and even the prospect of i'm
pediment from Congress does not
seem likely to break down the re-
covery movement"
Take a look at the various busi-
hess indexes Of production, the sta
tistics and bank checks and clear
ances, the increased velocity Of trans
actions and the reports OF sales this
Summer, as compared to last Sum-
mer and it is evident that We are
on the threshold of business re-
vival such as we have not had in the
five years of depression. The one big
blot on the picture is the presence
of nearly 100000 persons on the
unemployed list and the obvious fall
ure Of the New Deal to put the idle
to work.
The New Deal is compelled to wait
for business and industry to get going
in order to absorb these unemployed.
Unfortunately, past history shows that
business often starts to improve and
shows a squirt long before there are
jobs created to take care of all the
unfortunate. This merely means that,
if business had been given an oppor-
tunity a year ago to go ahead, there
would have been more people employed
today.
Restrictions Mean Delay.
Also, In accordance as the New Deal
by unnecessary restrictions keeps va
rious businesses from obtaining capi-
tai or interferes with the investment
of funds through laws that are defla-
tionary and threaten confiscation, the
AllOot CooClltAoA 4CH04A VA ANSSN-
ery-new capital--will be delayed in
getting into action.
The damage done by delay is two
fold--the unemployed are kept from
getting jobs and the taxpayers gen.
orally are compelled to foot a huge
relief bill in the interim.
Never was there a more convincing
demonstration of the unsound eco
nomics and half-baked theories which
they recently characterized expert
mental legislation, and never has
there been such conclusive proof of
the economic wisdom of our fore
fathers in safeguarding through a
written Constitution the American
system of responsible individualisn.
(Copyr.ght. 1857