Evening star., 1935-06-09
New Deal Now Faces the Possibility of
Recovery Through Orthodox Measures

minds in the months ahead He wants
them to contrast conditions under
N. r. A. codes with conditions as they
are to be between now and next April.
Isn't that taking quite chance?
What if things improve greatly?
Won't voters then blame the New
Deal for failing to take the advice OF
their opponents who had urged junk
ing N. r. A. many months ago?
The President is ready to gamble
on that chance He plainly reflected
belief that there will be return
Of Wage-Cutting and hour raising
that will bring a reaction in favor of
the New Deal, and probably in favor
of amending the Constitution to make
the New Deal safe.
Mr.. Roosevelt's decision on that
score is not that of the advisers who
have been guiding him on matters
of policy.
Donald Richberg wanted to re-
build an NJ R. A that might conform
to the Supreme Court ruling.
But Mr.. Richberg went along with
Gen. Johnson when the ground work
was being laid for the present mess
He shaped the policy of dodging court
N. r. A. decisions just as long as they
could be lodged. His advice as gen.
eral counsel of N. r. A. led to the
formula for code making which the
Supreme Court regarded as a riot
ouS' delegation Of congressional pow
er. So now his recommendations
carried less weight.
Raymond Moley, like Mr. Richberg.
wanted to rebuild N. R. A into some
thing new. But Mr.. Moley called The
turn that set this country on its way
along the nationalistic. planned
economy path. AS a result, he did
not sell his particular plan.
Then Gen. Hugh s. johnson was
back with his program. Gen. john
son invented the crack down" meth
DDS Of Blue Eagle enforcement. He
was strong on emotional appeals and
on grandioSe plans for herding every
thing from fly swatting to steel max
ing into code systems The structure
he built now has come down around
the New Deals ears, so he isn't as
popular as once he was.
Today. as in the past. the United
States is confronted with a choice
which must be made.
Henry Wallace, Secretary Of Agri-
culture, preSiStently refers TO the
choice involved. In his opinion there
are three ways to get recovery.
One way is to go back to the ortho-
dox methods of laisSez-faire But as
pointed out above, this will involve
drastic tariff adjustments, probable
cancellation Of war debts. the open
ing of American markets to the goods
OF other nations on a vast scale SO
that they can pay their old CONNER
cial debts and buy American farm
products and return to large scale
lending of American capital to for
eignerS.
X
The second way is to try controlled
economics on vast scale. This means
complete Capitalization of economic
power in the hands of the Federal
Government, loss of many liberties by
the people as under other virtual die
tatorships. forcible adjustment OF
agriculture and industry so that the
machine can be brought back into
balance.
A third way is that of the New
Deal. Under this method, as Mr.
Wallace sees it, there was an attempt
to work out compromise between
the two extreme methods The Gov
ernment undertook new responsible
ties and sought to work out adjust
ments formerly left to an unregulated
business and industry, but it tried to
do this within the framework Of
democracy.
Now the Supreme Court has stepped
in to say that this third method may
be all right as matter of economics,
but it is not possible under the Fed
eral Constitution as that document
now Is written. If there is to be a
change away from the old laissez-
faire method. the people will have to
make 1t deliberately and not under
the guise of an emergency.
Mr.. Roosevelt could try to lead the
country back to the recovery path OF
the past. But. obviously, he doubts
that people want to go in that direc-
tion. Voters have shown their dis
like for any attempt by the United
States to assume the role of inter-
national crusader to lead the world
to recovery by making more sacrifices
Or, the President could sit back and
see what happens when industry is
turned loose again. That, apparently
is to be the course for the next few
months.
New Deal opponents have a chance
to prove their point about Govern
ment interference retarding recovery
A strong recovery movement nov
could lead to upsets for many another
experiment.
lcopyrisht. 1850