The Washington times., 1935-12-04
BOSS RULE AIM
OF ROOSEVELT,
HANEY SAYS
BY LEWIS HANEY
Professor NJ Economics, New York
VwJVerattyO

ident's recent Atlanta speech leads
one to the following conclusions:
% Mr.. Roosevelt stands for
increased control over the people
by the politicians at Washington.
In short, he stands for boss rule.
This is what it comes to. when
more and more we are told to "let
the Government do it," 1t means
politicians controlling crops, pro
Viding socalled useful" work for
millions. and fixing the price Of
coal and cotton.
When Mr.. Roosevelt proclaims
that your government says to
yOu-you can invest your way into
q sounder future" he means that
he, Hopkins, Wallace, Ickes, Tug
well, and Farley are telling us.
These men are not "our govern
ment." They are the politicians
in power at the moment.
When he says that the peak OF
appropriations has passed, he is
saying that he can control Con-
gress. CUnder our Government, it
Is Congress that makes appropria-
tionsO
When he alleges that bankers
suggested a 70 billion dollar debt,
but that is more than l shall
ever let it co. he is talking like a
dictator.
(2) Mr, Roosevelt is reSorting to
demagoguery and seeking to stir
up class prejudice.
He Sneers at gentlemen in we'll
warmed and well-Stocked clubs. y
He alleges that a few individ-
uals and organizations are seeking
to dictate to the administration"
show to let the needy starve."
But what have the temperature
and the kind Of liquor in clubs to
do with the matter? (And If they
do, what members of the Roose-
welt Administration" do not be-
long to Sucn cIuDS?
Is it worthy Of the President
Of the United States to assert that
anyone in this country would
dictate to the administration
how to let the needy Starve"?
90 Mr.. Roosevelt will continue
the policy of attempting to borrow
the ration out of debt.
He seeks to get away with it by
calling borrowing investing =
that Is all. He says, Il shall
never let the debt go to 10 bill
lions" But he does not say how
far he will let it go. And he says
we can invest" ourselves into a
sounder future.
What does he mean by invest
ing? Apparently he means what
he calls useful work" But all
you have to do to find out how
good this investment is, is to
, watch almost any WPA gang, or
compare the cost of the Passa-
maquoddy or Grand Coulee pro
jects with the revenue to be ex-
pected therefrom. Would you in
vest your savings in any such ven
ture? OF course not. Then why
should these politicians do it?
~ Mr.. Roosevelt holds out no
hope of economy or balanced
budget.
Just consider what he actually
said: I'VE can look forward with
assurance to a decreasing deficit =!
He did not say, as he might,
that he stood for economy and a
balanced budget. He did not say
that he would seek to reduce our
public debt. All he said was that
he hoped that the annual deficit
may decrease.
AS long as there is any deficit
the total debt will grow. A de-
Creasing deficit is a deficit still,
and means increasing debt.
Mr.. Roosevelt stated that the
debt was 29.5 billions. Almost
before the words were out of his
mouth the debt became over 80
billions. He must have known
that he was borrowing 900 millions
more in few days.
On November 20 he stated that
he had working balance Of
nearly" Ia billions. On Decem-
ber he borrows nearly a billion
because his Treasury'S cash is
down close to the 700 million
headline"
Mr.. Roosevelt says the Govern
ment credit stands high. But how
does he know? Why does he not
sell long-term bonds to investors?
What he does is to issue short
term bills and notes to banks,
which turn Government debt into
bank credit. This artificial ring
around-the-rosy scheme of deficit
financing shows nothing as to the
soundness of Government credit.
If any great banker" advised
0 Government debt of $50 bill
lions, let the President name him.
New York bankers deny the allie
cation. I doubt if there is a single
great banker" in the country,
outside the Administration who
would approve Mr.. Roosevelt's
financial policy.