The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-12
URGES FEDERAL
FUNDS TO HELP
HEAVY INDUSTRY
determination Of Army Is
Suggested by Johnson
as Outlet.
BY HUGH 5. JOHNSON

D1 mum =. JOhNSON
WASHINGTON. April l2-How.
when and where are We going TO
use 5000. 900 900? Nobody knows.
Nobody
We have spent billions believing
that artificial buying power, poured
into stagnant industry. would start
it on its own steam. It hasn't
worked
Something worked like wild fire
from March 10 September, 1888.
But that something was not spend
ing which had not begun. II was
fear Of increased prices from AAA,
NRA and imitation. Business shot
from an index Of about 40 to about
IS II shot back 10 about so. stayed
there till the summer of 1884,
slumped to so. recovered TO so in
the fall. and there 1t remains-just
churning- better than either
year ago. or early 1882. Spending
did not pull US out and it is not
pushing us up.
There are four great mutual GUS
toners in this country. Agriculture,
heavy industries making things
We use like houses and machinery
consumers goods making things
we consume like food and clothing),
and foreign trade.
AAA Helps Agriculture
When we are hitting on all tours.
We have prosperity. When one stops.
the whole engine dies. Heavy goods
have been dead five years.
It's a cinCh TO boost consumers
goods. Most of the spectacular rise
in 1888 was there. Kick as we may
about AAA-it has kept the agricul-
tural cylinder working Dollar de-
probation alone boosted export
trade But we fumbled the ball on
heavy goods, and that was why the
whole team lost half the distance
10 the goal Very little spending
went 10 employment in this indus
try. Are we going to tumble again?
It looks that way.
Business by the billions IS
damned up here. For example, the
whole Oil-tanker fleet is three-quar-
tiers of the way to the scrap-heap.
The railroads are rickety with fear.
Much machine equipment in indus
try is obsolete We should speed
and concentrate spending on this
tagging industry. What can we do?
We shall soon have to spend mil
lions in mechanical equipment OF
the army. II makes one soldier the
equal Of many-a life saver and a
man saver. Spend it now when 1t
will serve a double purpose. The
bulk would go TO heavy industry.
Urges Subsistence Plots
The products of this industry are
usually financed by bonds. Nobody
wants bonds under the present
threat of monetary imitation. Let's
lend money at low interest on the
equipment trust" plan to reSpOn-
sible industries for mechanical re-
equipment. There is no limit to
what could be spent for employment
in this way and it would be only
loaned and not squandered.
Rural-urban communities tied by
rapid transit to industrial centers
would make workmen secure for
subsistence on small plots of land.
1t would not interfere with their
wage earnings or the natural group
ing of industry. We could build 20
projects for a million people in
year as fast as we built the war
environments and put a billion dol
lars into construction.
Without swift action centered on
this sore spot, we shall see no
better result from all our billions
than last years futile churning.
(Copyright 1885. by United Feature Syn
dicate. Inc All rights reserved. Repro
ductiOn in whole or in part forbidden)