Evening star., 1935-12-31
BY DAVID LAWRENCE.
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NelIuSpeCIlNely SpedkluS, 1900 was
a year of transition.
1t brought the greatest change that
has yet taken place in the evolution
of our postwar life.
1t was the year in which the consti-
tutional system of our country re-
ceived its most acute challenge.
The impact of the New Deal on the
Constitution-the effort to change the
American economic system to keep
pace with the circumstances of a
world wide upheaval-was unquestion-
ably climaxed on May q when the
Supreme Court of the United States,
by unanimous opinion, held that re-
covery processes must be kept within
the Constitution or else the Constitu-
ton must be amended.
Whatever 1888 and 1884 provided in
the way of experimentation by depar-
lures from precedent and accepted con-
stitutional practice was only to small
extent, however, brought to a halt by
the Supreme Courts decision in the
Schechter case. Instead of discourage
ing the New Deal reformers, efforts to
circumvent the decision of the Su-
preme Court proceeded just the same.
and as a consequence there are thou
sands of lawsuits pending and at least
10 new statutes which are under at
tack, involving for the most part prin-
ciples really adjudicated in the
Schechter case.
T.ans;f;o,, ConfipuaS
The period of transition, therefore,
continues. Not until the end of 1886,
and possibly not until 1887, will the
American people know how far Con-
gress has transcended its powers
under the Constitution and what ad-
juStments must be made to meet the
situation arising out of an effort to
put into force laws that are being al
most every day restrained by court
order.
The enormous cost of these adven-
lures in constitutional exploration will
hardly be known for years to come.
The cost is represented not merely in
the litigation and lawyers fees directly,
but in the economic arrangements
that are compelled by these projec-
tions of governmental powers into the
various businesses and industries that
the New Deal will have sought to bring
within its regulatory scope.
1t will always be matter OF dispute
among historians as to whether the
Supreme Courts decision in the N. r.
A. Schechter case was the start OF a
boom, or at least an accelerated recov-
cry New Dealers today are defending
the thesis that recovery was under way
this year earlier than the day of the
Supreme Courts big decision and that
all the various indices and statistics
of business showed an upward trend.
The critics of the New Deal, on the
other hand, are convinced that what
ever squirt may have been visible in
the early part of the year was more
than outweighed by the rather re-
markable progress that has been made
since last May.
The reasoning of the latter group is
that at time when business and in
dustry were uncertain as to property
rights the Supreme Courts historic
opinion made it clear that emergency
does not create power and that busi-
ness could 60 on in so far as conStitu-
tional protection was concerned. Ger
tainly business and industry have ex-
hibited a degree of confidence and
sure -footedness since last Spring
which was noticeably absent in the
period of N. r. A. experimentation.
World Conditions Help.
Disinterested observers abroad may
well argue that Americas recovery ex-
perience in the latter part of 1885 is
not. due to any internal phenomena.
but to the general improvement in
world conditions as revealed In the
statistics of most of the countries of
the world where, of course, no Su-
preme Court decision could possibly
have been of even indirect influence.
Thus the motor industry, which has
been leading recovery in America, can
account for much Of its sales and its
profits through the enlargement of its
foreign business. Without the orders
from abroad, or rather the increases
arising in the assembly plants and fac
tories owned by American motor car
companies in Canada and Europe and
South America, there would hardly
have been such large dividends to dis
tribute or the funds lately made avail
able for expansion of plants in the
United States.
While world trade is climbing very
slowly. it Is nevertheless factor in the
American recovery just as the impair
ment Of world intercourse brought
unemployment and the stasnation Of