The Washington times., 1935-01-05

p4 q II =, equip "AS "'
ment, and real estate. But by in.
creasing the risks and uncertain.
ties of investment, we defeat this
aim.
We seem to forget that invest
ments are made through money,
and that no wise man is going to
tie his money up in a long-term
investment when he has reason
to fear that the purchasing power
Of each dollar he puts in will be
reduced by devaluation or green
backs.
9. We try to stimulate the
capital gods industries Heavy
industries" but we penalize cap
1tal goods.
BY loans and easy credit ar
Fangements, We seek to induce
people to build, etc. But capital
comes only by saving, and we
both destroy the reward for
saving, and increase the cost.
We reduce the earnings of cap
ital, which keeps existing funds
from being invested in capital.
Then we penalize new saving by
risks and uncertainties, and even
force interSt rates down.
10. We urge people to build,
but we raise the cost of building.
II. We pay high money wages,
but we increase the cost Of living.
IL. We urge farmers to pro-
duce less, but we raise the price Of
what they produce.
13. We try to stimulate our
exports, but we will not let other
countries export to us.
IA. We talk of stabilizing the
currency, but we compel foreign
buyers to pay us in gold, and thus
accumulate a vast gold hoard
which absolutely prevents inter
national stabilization.
From this analysis of our poll.
cies, 1 conclude that the con-
Structive course requires that the
Administration make up its mind
to quit stalling and decide upon
some consistent plan. (The foot
ball season is overI
It must decide two great queS-
tons:
1. Are we going to initiate or
deflate?
2. Are we going to have "busi-
ness" or socialism?
My plan would be as follows:
l. Make "relief" cheap, un-
attractive, and nOn-competitive.
Give relief to the unemployed,
but increase employment by
helping employers. Take the
Government out Of business, so
that businss men can do buSi-
ness and employ labor.
2. Restore confidence by max
Ing conditions such that a buSi-
ness man can anticipate reason
able profits. Confidence must
have an enduring basis, and
that can be established only by
stopping the drift toward So
cialism, and moving the
threat Of further initiation by
balancing the budget and re-
turning to the gold standard.
3. Reduce taxes by reducing
Government spending.
4. Restore sound credit, pri-
vate and public, by establishing
the bases Of credit, which are
(a) . stable money which can
serve rs o standard Of deferred
payments, and (b) an oppor-
tunity for saving and the prof
table use Of capital. Frozen
credit must be liquidated, which
can be facilitated by equitable
debt composition settlement
under amendments to the bank
ruptcy act.
S. Open up markets and quit
trying to raise prices. Let them
alone. Let demand come be-
cause things get cheap. Let
supply become adjusted to de-
mand. Break up monopoly,
both private and governmental,
and encourage fair competition.
6. Quit experimenting and
get back to experience and eco-
nOmic law. Gust the crackpOtS,
and get the advice Of such ma
ture and wise Democrats as Bar.
uch, Baker, Davis, Douglas,
Glass, Smith and Young.
I maintain that with all the in.
consistent and conflicting expert.