Evening star., 1935-03-22
FRIENDLY GESTURE
TO BUSINESS SEEN
Modification of Hostile
Legislation Hinted by
New Dealers.
BY DAVID LAWRENCE.

formal behest of President Roosevelt
has been advanced in various quar-
ters here in the last few days with an
aspect of authority that cannot be
ignored.
1t is being suggested that perhaps
the turmoil and strife that has been
produced by the extreme proposals
would bring their own corrective IN
a series of notifications which Will
be far more acceptable to the inter-
ests affected now than would have
been the case if the extreme position
had not been taken at all.
In other words, the administration
is again represented as trading to get
the maximum it can attain in the
way of legislative reform, leaving 1t
to the protests of the business inter-
ests to outline the true nature OF the
limits to which legislation can really
60 without serious injury.
Protests of People Needed.
So far as Capitol Hill is concerned
there are few signs that notifications
are being inspired by the admins
tration. On the contrary, there Is
plenty of evidence that the protests
of the people are being needed, for
never in many years has there been
such a flood of mail antagonltSlc 10
legislative proposals.
Perhaps the most difficult thing to
explain about the administrator
attitude is its tendency to disclaim
responsibility for some OF It's own
measures. Thus Joseph Kennedy,
chairman of the Securities and Ex-
change Commission, and one OF the
ablest officials in the New Deal, made
a speech ir New York this week try
ing to cheer sup the business and
financial community by pointing out
that New York City was too blue and
that things weren't as bad as they
we're painted-and that they rarely
ever are.
why conjure up legislative mon
strositieS that will never see the
statute books" asked Mr.. Kennedy
in his address.
Bank Bill Worries Business.
Well, the various legislative mon
strosities which today are worrying
business and finance may be listed as
follows:
First. the banking bill, which will
put complete control Of the issuance
of money into the hands of political
government and thus abolish what
ever independent judgment or ap-
praisal there might be on the subject
of the wisdom or unwisdom of Gov
ernment-issu bonds or currency,
Second, the agricultural adjustment
act amendments, which seek to license
all food businesses and professors, in
fact every business growing out of a
farm product or competing with a
farm product, and forcing the ma
jority in any industry to accept the
will of the Secretary of Agriculture on
prices and other factors in marketing
agreements.
Third, the destruction of all holding
companies by 1910 in the electric and
gas industries, irrespective of whether
they have economic and engineering
justification or whether their Securi-
ties have been lawfully sold to the
public.
Industrial Strife Feared.
Fourth, the complete control of en-
ployer and employe relations by the
Federal Government and the removal
of minority rights from employees, thus
encouraging industrial strife and Gre
ating new uncertainties In fixing the
costs of merchandise.
Fifth, amendment of the Federal
Trade Commission law to permit Fed
eral inquisition of every business in
the country, whether incorporated or
not, and making every business that
"affects" interstate commerce come
within the Federal jurisdiction as to
whether it is guilty of deceptive
acts"
Every one of these measures was
sponsored by the Roosevelt admins
tration. Every one of these is pend
ing in Congress and is represented as
being in the Presidents program.
If it is not seriously intended to
pass any of these 'monStroSities"-
for they are the things which are dis
turbing business today-then Chair
man Kennedy's speech has sensa-
tional implications. 1t means that
business really has nothing to worry
about, for all these proposals are then
to be regarded as political gestures
only.
Kennedy Is Conservative.
But every one of these reforms is
backed by important officials in the
administration, persons who have the
FOnfHpnpp Of tho prpcidant
Mr.. Kennedy is known to be some
what conservative in his point of
view, and he has certainly made
favorable impression on the financial
world by the careful way in which he
has revised the securities law regula-
tions to make them less onerous.
But what Mr.. Kennedy has been
unable to explain is how it happens
that one day banking house is able
to announce big issue in a given
field, and the Securities and Ex-
change Commission points to it with
pride as sign the capital markets
are reopening, and then, few days
later, the President of the United
States issues message creating
doubt of the worth of securities is
sued in that whole field of endeavor
in which the new issue is to be fioated.
Specific Assurances Wanted.
If the capital markets are to be
reopened, those who take risks in
floating the securities-to say moth
ing of those who buy them-are going
to ask for much more specific assur-
ances than they have got before. In
deed, investors would want assur-
ances from the source of all au-
thority that, once they go ahead,
there will not be a reversal of engines
in their respective fields by an ad-
ministration which one day proposes
extreme legislation. disclaims and
disavows it the next, and, in the end
is found to be sponsoring all the main
principles of reform legislation, no
matter how defiationary the effect
on business and finance.
Mr.. Kennedy had worthy motive
in trying to remove Legislative mon
strosities. but the trouble is that
neither the White House nor Capitol
Hill has shown any visible signs Of
softening the blows. This makes 1t
doubtful whether the assurances from