Evening star., 1936-04-27
THE POLITICAL
MILL
By C.. Could Lincoln.

President Roosevelt, in his address to
| the National Democratic Club in New
| York Saturday night. announced num-
ber of objectives. He wants to increase
the purchasing power Of the people. He
wants the farmer and the city worker
| to improve their conditions side by side,
or more or less simultaneously. The
problems of the two constitute national
| problem, and the Roosevelt administra-
ton, he said, had tackled it in national
way. And the President claimed that
| the administration had done much to
raise the wage Of the city worker and
| the income of the farmer. He took shot
at the critics of his administration who
| complain because the national debt has
been increased, remarking that whereas
| the deficit of the Federal Treasury this
| year will be about So 900, 900 900, the ma
| tional income of the people Of the United
States has increased from $35, 900 000, 900
| in 1882 to $65 ,000, ,000, 900 in 1886. AS the
| President tells it, 1t sounds like good
| trade.
The objectives stated by the President
will find few opponents. There will be
| plenty to dispute his claims that the
| administration has done much to attain
| these objectives. They are likely to call
| attention to the fact that the national
| debt will have jumped some IS billions
| of dollars during the Roosevelt four years
| in the White House, and they may even
| dispute the Presidents estimates of the
| rise in national income during the same
| period. The increasing tax burden, due
| to the heavy expenditures of the Federal
| Government, also may figure in the pic
ture the anti-Roosevelt people will draw.
*.**
The President indicated, in his address,
| his theory of bringing back recovery.
| Prices must go up and wages along with
| them. There Is, Of course, another
theory: that prices must go down. bring
| ing greater production and greater pur-
| chasing. before wages increase and re-
| covery flowers. The discussion is some
thing like the old problem-which comes
| first, the hen or the egg?
President Roosevelt argues that re-
| duction of manufacture costs, which. Of
| course, is necessary for reduced prices,
| does not mean more purchasing power
! and more goods consumed. Well, it is
| just as easy to argue that higher pro-
| duction costs. which are inevitably fol-
| lowed by higher prices, do not mean
| more purchasing power and more goods
| consumed. The higher the prices, the
less goods people will buy, or can buy.
| And when the Government undertakes
to increase costs and prices, or to limit
| production, there Is a tough time for the
| consumer But Mr. Roosevelt said:
Higher wages for workers, more in
come for farmers mean more goods pro-
duced, more food eaten. fewer unem-
| ployed and lower taxes. That is my eco
nomic and social philosophy, and, Incl
dentally, my political philosophy as WELL
| ***
| And yet, the Roosevelt New Deal has
not produced lower taxes, and has not
wiped out huge unemployment. The
| Government has poured out billions of
dollars in its effort to prime the pump"
and to provide food for the unemployed
| and Jobs. Business has taken turn for
| the better The anti-New Dealers insist,
| however that such turn would have
been taken anyway, and that if business
| has improved, 1t has been despite the
New Deal and not because of it.
| The political philosophy of the Presi-
| dent is to unite the city worker and the
| farmer in support of the New Deal for
| this coming national election. His appeal,
| in his New York speech. was directed
| along those lines. His address was broad
cast to the Nation and went to the farm
erS in Iowa and Kansas and Missouri,
| as we'll as to the workers in New York
| and other cities. Obviously. if the Presi-
dent succeeds in lining up the great bulk
| of the farmers and the industrial workers
he has reelection beyond question of
| a doubt. There are certain hitcheS how
| ever, which may prevent such co-opera-
ton. The farmers are becoming restive,
| in spite of the Government checks
| handed them for not producing crops.
They do not like to see the ever-increas-
ing imports of farm produce and live
stock which are coming into this country
| from abroad. They do not like to see
the farm products of foreign nations
taking the place of American products
| in the world markets. And the workers
are wondering in many instances when
they are going to have their old jobs back
and so get off the relief rolls, or the made
work jobs of the w. P A.
X
| The Presidents s New York speech, like
| his address to the Young Democrats in
Baltimore couple of weeks earlier, set
forth the Presidents theories, and also
claims of improvement under his admin
| istration. Some of the generalizations
made by the President are disputed. For
example, Ogden L. Mills, former Secre-
tary of the Treasury, discussing the
Presidents Baltimore speech, challenged
the assertion made by Mr.. Roosevelt that
you and I know that while the total
| production of America is about back to
the high point before the depression, only
little over 80 per cent as many human
beings are engaged in turning out that
| production" The President was arguing
that the Government had to take a
hand in limiting hours of employment
and in limiting the working age of labor
| If there were to be enough jobs to 60
| around.
| Mr.. Mills, in reply, pointed out that,
according to the reports of the Federal
Reserve Board the volume of manufac-
turing and mining in January, 1886, was
| 20 per cent lower than the average pro-
duction in 1929 and factory employment
was 20 per cent lower. In other words,
Mr.. Mills said the relationship between
the volume of employment and the VOL
ume of production in January, 1896, was
the same as in the year of peak pros
perity. And Mills continued:
| IF MI. Roosevelt has in mind the total
volume Of production and trade, the case
| against him is even stronger. According
| to the best available estimate DreDared