The Washington times., 1935-01-03


aging the ostrich of private debt
to bury its head in the sands Of
public debt-aS If that settled
anything!
This development reminds me
that the start OF new year is a
good time to review the events Of
its predecessor. 1t seems to me,
however, that there is little use in
presenting the usual list Of mere
events. At present, almost every
thing hinges on Government pol
.icieS. The most important sum-
mary, therefore, must be one
which will analyze and appraiSe
such policies.
could list in chronological or
der the devaluation of the dollar,
the provision for substituting Is
per cent of silver for gold, the
establishment of the SEC, the
seizure of control over the Federal
Reserve System and appointment
of Eco:es as governor, the Bank
head Bill, the breakdown of NRA.
I could present index numbers to
show how industrial activity rose
in the early part of the year, only
to slump in the summer and fall,
and how the drought and the tex
tile strike affected the figures.
But what we should be in
terested in is the meaning of the
various policies adopted at Wash
ington. Why is it that we find
business and security prices at the
end of 1884 about where they
were at the beginning, despite all
our experimenting? Why is it
that during the past two years we
have had Spurts and SlumpS OF
such magnitude that in ordinary
times they would have been spread
over twice the time and might
have been called cycles?
Such a summary is not only
interesting, but is important as en-
abling us to anticipate better what
may be expected of the new year.
It will lead us to some construc-
tive suggestions as to future
policy:
So, beginning with this article,
will discuss for a day or two,
in a summary way, the basic
policies which have dominated
bushes during 1884.
The point which impreSSes me
most is the fact that almost
everything that has been done
has been Self-defeating. In other
words, the policies adopted At
Washington have taken away
with one hand what they gave
with the other. They have re-
suited in much churning around,
but the net result is about zero.
We are stalled.
In my next article, will show
how this condition has existed IN
money and credit, but first let us
see how it shows itself in the ere
lief" policies.
Few will deny that the general
trend of relief in 1884 has been
toward Capitalization in the Fed
eral Government. and toward
"make-work" policy This was
obvious in CWA and PWA. Then
the FERA was set up, but 1t too,
while giving much direct relle1'
has swung toward work relief"
The central idea has been that
~ we can "cure" unemployment,
all will be we'll, and this has led
the Administration to act as II
unemployment were the cause OF
the depression! Instead of trying
to make business good, so that
business men could employ labor,
they have tried to make employ
ment first, thus hurting business
so that business men could not
give employment.
The whole problem of "relieE"
has been so mixed up with busi-
ness operations, that relief has
hindered business and retarded
employment.
Cd Relief has been so given
as to affect hours and wages,
and has thus tended to disrupt
business operating efficiency and
restrict business profits.
CD Relief has been so given as
to put the Government into COM
petition with business.
(3) Relief has been so given
as to be unduly expensive and
wastefuI, thus increasing public
debt and monetary uncertainty,
as well as taxes.
BY trying to give relief in the
form of wages, the Government
has not only done unprOductive
things, but has made relief
"wOrk" attractive to those ION
relief" This Is demOraAiZlng
and tends to perpetuate the
system.
So in the second half of 1884,
employment decreased and relief
increased, with the number ION
relief" now at a maximum for the
depression.
BY present relief methods we
are prolonging unemployment,
and are driving the Government
into the position of national EN-.