The Washington times., 1935-10-30
'TUGWELL AT It AGAIN.
HANEY L|KENS TALK
TO RED APPEAL
By LEWIS HANEY
ssor of Economies, New York University

By LEWIS HANEY
Professor of Economics New York University
Professor Tugwe it again. Unquesonably with the
approval of Mr.. Roosevelt he has been telling California
Democratic gathering how to reeiect the President
Evidently prominent issue in coming election is be
The matter of of public funds and the growing public
debt So Tugwel takes this issue but only to dismiss it
with wave of the New Dealers magic wand
First he says spent for relief and recovery
by 1888 will be ONLY Is billion dollars
WE'LL that is nearly big the total public debt
It is about $500 for each and every family in the United
States
But it does not begin to tell the true story The New Deal
getting used all their bureaucratic "Admins
tations they have begun their spend
ing 'ordinary expenditures! It is getting hard to
check up their spending but it is safe to say that his
figure is at least couple of billions too low.
He proceeds to cut it down. to his own satisfaction by
making two ''subtractons.'
First he claims that 375 per of the spending is for
"recoverabes" The professor knowsexactly 81 and Y
per cent But that is sheer bunkum Just what they
doing that will bring cash income? would guess that
per of their spending will be recoverable
my guess is good Tugwells
Second he subtracts three billion dollars as the profit
made devauing the gold dollar Think of i'll They take
given amount of god divide up into smaller pieces
say they have made pro That does not add
iota to wealth.
Why all they have to do to divide their gold into
chunks and call them dollars make another profit
nine billion doars Then suppose they would say that they
had not really run up any debt at all
This sort of thing Tugwe with Mr. Roosevelts approval
calls realistic"
1t is a fantastic dream.
For the rest this New makes demagogc appeal
to class interest such radical Socialist Red
might make
urges surge forward with the workers and the farmers
committed achievements but trusting leader
Duce Fuehrer for the disposition of the
timing of attacks
The appeal is to two classes W The workers and (2 the
farmers These he reminded his hearers been
most benefited by "our poces' CTh that they
been given the of the funds the New Dealers bor
rowed and stoen.)
He is particularly concerned about alleged attempt
separate these classes And here he his finger
spot No has to attempt to separate organized labor and
farmers They will separate themselves High food and cloth
ing costs will separate the aborer High fertilizer fencing
and implement costs will separate the farmer.
Note that Tugwe expects workers and farmers
after what he calls general achievements and follow he
leader, who will attend to the details This is the old
quarterback philosophy. Our is to time the cat
tacks" (and also the ''breathing spells'O.
But attacks what? Tugwell tells u.s. He says we are
engaged in death struggle between industrial
tocracy and democratic discipline plain English he
that Mr. Roosevelt is bent upon destroying individual
initiative in business.
If this is not what meant let President deny itl
By industrial autocracy he private enterprise
and the freedom of opportunity for individuals to make
economic choices.
By democratic discipline" he means regmentaon Dis
1t taking orders from dictator 1t political
autocracy.
This deah strugge' is between the political autocracy
OF the New Deal and the system of individual initiative.
predict that when Government credit gives the
gentle rain of checks" farmers and workers
will rebel against democratic dscpne' Bureaucracy and
II