Evening star., 1935-12-08

the dominance Of monopoly We will
do as we have done in the last 40
years-pile up taxes, city, State and
national-pile up debts until now,
public and private, they amount to at
least $3.50, ,000, 900. .000."
Referring to the reports Of the
Brookings Institution, Borah con-
tinued: There Is another state Of
facts Tin addition to the fact that
America is not overproducing) found
in these reports equally instructive
but far more distressing. During the
period Of almost unsurpassed pros
perity, taking the Nation as whole,
we are informed that at least 70 per
cent Of the entire population was
compelled to live on an income that
afforded them nothing more than the
bare necessities of life, and at least
one-half Of the entire population were
living on less than the bare necessi-
ties Of life, measured by any decent
standard of living. It appears that
$4,000 families at the top Of the eco
nomic ladder had an income equal to
that Of 11,635,000 at the foot Of the
ladder; that so per cent Of the entire
income Of those years went to 13 per
cent Of the population.
Had Surplus of Confidence.
But the picture would not be COM
plete without some additional facts.
1t must be recalled that during this
period we had the gold standard. q
balanced budget, our currency was
sound-tested by the most rigid rules
Of orthodox hnance-and we had con-
fidence. The only national surplus we
had during this period was confidence.
Our industrial leaders and bankers
were aglow, II not intoxicated, with
confidence.
I'VE had all these things-and yet
there was something fatally wrong.
Our momentum was indeed remark
able. Within six months we were
going over Niagara. We had all the
outward signs of prosperity. Every
thing seemed to give promise Of still
greater prosperity, but beneath it all
the constantly diminishing purchasing
power of the people was sapping the
very foundation Of our economic
structure. We we're living in an eco
nomic shell. The only true basis Of
a stable economic structure-purchas-
ing power-had in q large degree been
reduced to a minimum. We called 1t
prosperity It was a pretense, de-
ception. 1t came near being legalized
extortion, with the Government, like
Saul Of old, consenting to the crime.
II conclude my reference to these
reports by quoting single, dry, crisp,
cold but momentous paragraph:
American consumption Is potentially
enormous. American production is
potentially much larger than actual
production has ever been and the de-
feet In the system lies In the element
which connects the two to each other
the element of purchasing power.
We are convinced that the failure Of
the need to evoke the production and
the failure of the production to satisfy
are due to malsdjustment In the dis
tribution Of purchasing power"
Senator Borah said one Of the results
of this maladjustment is the farm
problem and that If the $4,000 900
families living near or below the pow
erty line" had been able to purchase
what they needed there would have
been little or no surplus on the farm.
Maladjustment Brings JOblessness.
And although you may reduce acre
age until our splendid farms become
Chinese vegetable gardens If this NAL
adjustment Of purchasing power con-
tinues to grow, the farmer will drop to
the level of the peasant. AS q result