Evening star., 1935-12-14
Market Expansion Will
Solve Economic Problem
40 the Editor Of The star:

TO the EDITOR OF The star.
Your editorial in Tuesdays issue en-
titled Defense of the A. A. A." regard
ing the objectives of the President and
this administration, is very timely and
most interesting.
There will never be any unanimity OF
view with respect to the methods where
by the general welfare of the American
people will best be served. But it does
strike me that there should be general
agreement upon this one feature of our
present situation: If unemployment is
our chief trouble, there is but little, If
any, chance of solving such difficulty
by program of restricted production, in
volving as it does a contraction of en-
ployment. Such a program does not
make sense. On the contrary, the formula
by which such a difficulty must be solved
is something like this: More markets for
more production for more employment.
Now I realize that am preaching
what the union laborer and the typical
manufacturer will say is rank hereSy,
that America is irrevocably committed to
a high wage scale and protection for
American manufactures. We have tried
that for the last two generations, and
under that system we wellnigh witnessed
the collapse of our whole social and in
dustrial order. There is nothing COM
pellingly convincing or particularly sacred
about the high wage scale or protection
Agriculture certainly wellnigh went upon
the rocks under such system and had
to be given considerable artificial stimu-
lation to be saved.
Purchasing power we must have In
order that the products of the farm and
factory may have a market But 1t is
not necessary that all the cost factors
of production should be stepped up in
order that purchasing power may be
acquired. The reverse may give us the
same, if not greater, purchasing power.
In short, we can get increased purchaS-
ing power by stepping down the cost OF
the commodity to the consumer as well
as by stepping up his income.
Most of us are familiar with the find
ings of the Brookings Institute. which
The Star carried recently. There 1t ap-
peared that during the peak of the con-
sumptive period in the year 1929 there
was an additional potential market for
SIS 900, 600, 900 worth of goods within the
United States before the American peo-
ple attained the level of what our vari-
Gus governmental departments had set
as a decent standard of living. Further
more, most of our economists assert that
some so per cent of the peoples Of the
earth are underfed, underclad and un-
derhoused. If that be true. there is prac-
tically no limit to the worlds consumptfve
power which means there is a potential
market or outlet for the productive ener-
gies of the American people.
But we have got to reduce the cost
factors all along the lines OF production.
The savings made possible by scientific
discoveries as well as the economies made
known by efficient and honest manage
ment must be passed on to the consumer.
We must put 5000, 900 men to work at,
say, 1888 per day rather than 100000
at $40 per day, and the business man and
inventor must forego the idea that they
are to become millionaires and be con-
tent with reasonably decent living in
comes, These conditions must be brought
about by the voluntary action OF the
American people. No government can
bring them about.
We can destroy both liberty and civil
ization in a great class conflict. as has
very largely happened in Russia. Ger
many and Italy. But the estate OF the
average man will in no wise be enhanced
thereby. So let's go after more markets
for more production for more employ
ment. Let's not stop at making the high
ways between Canada and the United
States arteries Of trade and commerce,
but make the whole Atlantic seaboard
one great trade street. With this as an
example, the chances are that Europe
would come to her senses and give nature
a chance to help with the solution Of
her problems. JNO. w. HESTER.