Evening star., 1935-12-17

in Europe in 1881. We had no panic
at the most dangerous point in the
depression when out banks were weak
est in the Spring of 1882. There was
no panic before the election OF No.
vember, 1882. When did they become
frightened? They became scared a
few weeks before the Inauguration of
the New Deal on March 4, 1888.
What were they frightened of? They
could not have been scared by the
outgoing administration, which had
only a few days to run. They were
frightened at the incoming New Deal.
Why were they scared at the New
Deal? Because soon after the election
large numbers of people awoke to the
fact that promises given in the cam
paign would be violated. Among other
things, it gradually spread that the
gold standard would be tinkered with.
1t was evident that wholesome orgy
of spending of public money would be
undertaken. Business Slackened its
energies. Shrewd spectators shipped
their money abroad at fabulous profits.
Bankers tried to protect themselves.
The public in blind fear demanded
gold and the covenants" of the
United States which called for gbld
Some of them were scared at the
banks by the destructive publication
of r. F. c. loans. The banking struc-
ture was not insolVent. After the
banks were closed it was found that
the solvent banks, measured by de-
posits. comprised 90 per cent of the
banking strength of the country. The
President himself stated they were
sound. Subsequently more banks were
found sound and reopened. And be-
yond this, important banks wrongfully
closed by the New Deal, such as in the
Detroit area, are now paying out 100
per cent to the depositors. 1t was the
most political and the most unneces-
sary bank panic in all our history. 1t
could have been prevented. 1t could
have been cured by simple CO.
operation.
Unable to Reconcile
Roosevelt Speech and Action.
The President in further elucidation
of the stop of civilization says: AT
that time our national balance sheet,
the wealth versus the debts of the
American public, showed We were in
the red" The value of America is
not the quotations in the market
place-either the highs of imitation
booms or the lows made in anticipa-
tion of the New Deal. He informs
us, however. that some great bankers
told him that the country could safe
ly stand an increase in the national
debt to between SIS and rs billions.
He adds remember this was in the
Spring of 1888" Thus we are to
believe that when our wealth was less
than our debts We were so strong we
could still borrow 55 billions. 1t cer-
tainly is confusing thought. 1t in
dicates some little excess of assets
and at the same time great restrain
on the part of the New Deal.
The breakdown in confidence which
sounded the advent of the New Deal
is, of course, a helpful statistical
point when they want to show how
good they have been to us.
have no desire t0 waste time over
historical discussion. But correction
of distortion which is used to justify
destructive national policies and this
high piling up of debt and taxes is
imperative. It is even more impera-
tive. as the documented facts upon
that subject were published by Myers
and Newton six months ago and have
not been refuted.
Assets Held Inherited
From Previous Administration.
A second defense of this spending
is a grand example of New Deal book
keeping. The President justihes the
8la billion rise in debt by the New
Deal by suggesting it is offset by
nearly Az billions of recoverable
assets" He states also that the debt
increased little less than four bill
lions in my administration. The little
less was $4O0, 100000 less. But of more
Importance, he received more than
81, 100000 of these recoverable
assets from my administration; or al
Tentatively, they have realized those
assets and spent the money. The
President seems to have forgotten the
very powerful agencies set up which
were making loans for relief of agri-
culture and unemployment long be-
fore his administration.
With these corrections, the increase
In burdens on the taxpayers in the
Hoover administration was under u
billion. Also in addition to his 21a
billion error in estimating New Deal
debt increase, the President omitted
the New Deal guarantee of four or
five billions in bonds of lending COM
panleS. We may expect respectable
losses on these also. 1t is unfortunate
that within 10 days after that address
the national debt should have jumped
another billion. And this is not the
last jump. From the high signs in the
Government skies I venture it will
Jump to 80 or SO billions by next July.
Waste, Folly,
Politics and Ineffectiyeness.
But now we come to the Presidents
major defense for this gigantic spend
ing and unpaid bills. That is the
need to relieve the unemployed. I
shall develop that subject, for there
is no better example of the whole
workings of the New Deal. Its Or
ganization is typical of the whole
gamut of waste, folly, ineffectiveness,
politics and destruction of self-gov-
ernment. When in the face of a de-
crease in the unemployed the cost of
relief rises from 1,100, 100000 to an
appropriation Of $4,000 900, 900 for
single year it is certainly reason for
searching inquiry.
But when comb over these ac-
counts of the New Deal my sympathy
arises for the humble decimal point.
His is pathetic and hectic life,
wandering around among regimented
ciphers trying to find some of the old
places he used to know.
Let me emphasize one thing right
at the outset. There Is no disagree
ment upon the public obligation to
relieve distress which flows from ma