The Washington times., 1935-11-07
GO BACK TO HOOVER?'
HANEY THINKS NOT;
HAS OWN PLAN
By LEWIS HANEY

Professor of Economies, New York University
The Tuesday election returns suggest growing dastsfac
ton with the New Deal Certainly the swing from it
in the Eastern half Of the Nation.
This raises the question: what should take its placef
One of the chief arguments for the New Deal which get
from Western readers vote will Ego back
Hoover and return the old bankers and business barons to
power.
Personally don't believe this danger real The business
leaders have been badly scared We have passed few good
laws regulating financial manipulation The people have been
much aroused You note that the Republicans turn
ing to the West and seeking grass roots leader.
The real danger in this respect is that Mr. Roosevelt were
reelected would go with waste and initiation Then the
final crash would in his second term Then there would
be reaction to Conservatism which would swing
back the old monopoies and hghandmighty financial
operations.
Ultimate success along New Deal lines is impossible So
had better stop before driven by financial to
extreme reaction back to the old leaders
I think that certain definite principles clear.
To begin with we must busnessike admnistra
ton of national affairs The labor and capital of the Nation
be directed be really productive which to
make things that pay-cover costs and yield profit We
must quit wasting and get back to efficiency.
this have got get rid of the New Deal
bureaucracy and restore competition business and industry
Only by restoring and perfecng the competitive system OF
business hope for efficiency Only by competition can
insure chance for the efficient to wn and at the
same time insure that the least efficient will lose.
So my program is as follows:
l. Eliminate monopoly wherever it is not necessary. Where
monopoly regulate it strictly let the Govern
nent take control
g Then bend all agencies toward making competition
efficient. This do in many ways. just foot
ball has been made safer and arer SPORT revise
the rules of the business game and enforce penalties against
unfair competition We require accounting
We can do vastly more in the way of giving competitors full
ue and timely information concerning the total condition in
their industry trade The function of government should
be to educate and advise competing business
s. Set up strong and intelligent control bank credit
Why after all these years of talk actually make the Fed
Reserve Board the most skilled nonpartisan group of
financial experts the nation and then give it full power
control credit? We could then stop overextenson Of credit
overspendng which results That would do much
prevent these accursed booms with their oveproducon and
final crashes.
At the time establish sound money system That
would require first balancing of the public budget and
second the adoption of definite standard for
s. Take the lead sensible hardheaded policy of inter
national cooperation based the principle that international
trade is for the good of all nations
Clean up whole system for giving relief to the needy
This would require the development of direct relief local
function for towns and countless with State supervision This
should be supplemented by busineske system of conb
tory reserves for unemployment and old age
Get rid Of the New Deal wasers and bureaucrats They
running up debt initiating currency and of
all increasing the army of demoraed dependents They
making it impossible for employers to employ.
Finally if you want radical REFORM why have in
our politics? Why not improve system of selecting cand
dates that neither corrupt standpaers cracpot play
boys get control the destines Of our natonY