The Washington times., 1935-12-05
POLITICS STILL
INBUGGY STAGE
.HANEY NOTES
BY LEWIS HANEY
Professor Of Economics, New York
University

1enging my statement CnaC puSl-
ness leaders and bankers have
learned lesson. In view of these
letters, would call attention to
the public statements made by
the head of the New York Stock
Exchange and by the Federal Re.
serve Advisory Council.
Mr.. Gay, of the stock exchange,
has gone on record as favortng
the following:
A wise regulation of monopolies.
A wise regulation Of unfair
competition.
A sound currency system.
A sound credit system.
Measures designed to prevent
the coming of another depression.
He urges that trained econom-
lists of vision should study our
social problems, and that their
judgment be made effective.
The advisory council of the Re-
serve System has come out with
suggestions looking toward con-
trolling initiation. 1t urges that
steps be taken now to prevent a
disastrous boom-diSaStrouS be-
cause boomS are always followed
by depresSionS.
# the business leaders who COM
pose this board were looking only
for their immediate speculative
gains, they would not do this.
They have evidently learned the
lesson Of 1929.
AS another indication Of all
this, one may ask where are such
old leaders as Wiggin, Mitchell
and Insult now?
My observation is that the great
majority of business men are now
in favor of maintaining as high q
standard of living among labor
erS as possible, and to that end
they favor higher wages than they
used to.
1 also find that most business
men are more reasonable and
moderate in their views about
tariff protection.
Such changes. of view do not
mean that human nature" has
been changed, but they do mean
that business men have learned
lesson. They have enough sense to
see that their own interests are,
in the long run, tied in with the
general welfare. They have re-
ceived good scare by the threat
Of social revolution.
Few Of them want to do what
has come to be popularity called
'going back to Hoover" They
favor a more progressive" can
didate. They may do this reluc-
tantly-I don't know. But they
see the necessity Of doing it.
This last point suggests what
I think is the most important fun
damental in the whole situation.
This is that our greatest need of
reform is in POLITICS.
If government is to exercise
more control, and do more things
for us, we must have a better ad-
ministration of government.
In practice, government is b
bunch of politicians. It becomes
an administration" Our Con-
stitution and general form of gov
erment are good. But the men
we get to run the Government
c'the administration often are
not up to their job.
We can get no better govern
ment until we get better men to
serve as Representatives, Sena-
tors. President, and Cabinet.
Under our present method Of
selecting candidates and electing
men to office, it is only by
chance that we get efficient men.
What do those who decide our
money and credit policies know
about money and credit? What
do those who want to run the
business of the nation know about
business?
It takes more than honesty to
be an expert on money, banking
and business.
If you fall back on the idea
that "the people" are ignorant.
and that government can't be any
better than the people, you take
a hopeless position. If you ac-
cept the idea that the muddling
and waste of the politicians now
in power is to be excused because
they represent a muddle-headed
and wasteful people, where do
you get? You must conclude that
such an administration" had bet
ter quit trying to run the bust
ness of the nation.
Unless and until we can devise
some political method for selecting
and electing and reelecting men
who are not only honest but also
efficient, intelligent, trained, and
educated for their jobs, it is folly
to talk about social planning"
and government control"
If we want social planning, the
first and essential step is to find
out how to get the best social
planners.
American politics certainly are
in the horse and buggy stage.
Sn nA~w1H~