Evening star., 1936-05-12

ever witnessed.
This brings us to the question Of
what the Government is now doing
that it should not do and how the
objectives of the present program,
which have been agreed to as proper
and necessary, can be achieved other
wise. In order to meet this question
fairly, it Is essential to determine
what temporary or permanent respon-
sibilities the Government has as
sumed since March, 1888; the circum-
stances under which these RESPONSE
bilities were taken; and the vital ne
cessity Of maintaining, in one form
or another, continuity in the pro-
gram needed for the future. AS q
result of depression conditions. busi-
nesseS were forced to cut expendf
lures and curtail activity to meet the
demand of their loans. There fol-
lowed a rapid and widespread decline
in employment, production and loss
of purchasing power accordingly.
Cities throughout the country were
faced with the loss of revenues
through the inability of the people to
meet taxes falling due. The same
situation had developed in a large
number of States. Thus there was no
other way that the millions Of un-
employed could be taken care Of ex-
cept through the resources and credit
of the National Government.
Disagrees With Liquidation Idea.
There are those persons today who
hold to the theory that the most con-
structive action which could have
been taken in the long run would
have been to allow business enterprise
to go through the process of complete,
immediate liquidation and reorganiza-
ton While it is true that just prior
to the depression many values were
pyramided far beyond their actual
worth, yet neither did the depression
level represent their real worth. The
country would not have been able to
withstand the shock Of such a COM
plete liquidation.
The destruction Of the peoples
confidence In their democratic system
and in their Government would in it.
self have been q far more serious
challenge than economic and flnan-
cial def1ation. No one can fairly deny
the necessity for the country saving
action taken by the Roosevelt ad-
ministration. This action naturally
required the assumption of broad re-
sponsibilities by the Federal Govern
ment. 1t is almost automatic that 1t
is far easier for the Federal Govern
ment to assume the responsibility Of
others than it is to pass that respof-
sibility back when the more critical
aspects of the emergency have passed.
This is due to considerable extent
to the hesitation or unwillingness of
other agencies again to take over
these responsibilities as their capac-
ity to do so increases.
Would Return Responsibilities.
Now that the graver aspects Of
emergency are over, the administra-
ton seeks every opportunity to pass
back to private auspices and nom
Federal governmental agencies those
functions transferred temporarily by
the drastic depression situation. For
example, the Home Owners Loan
Corp, organized to refinance homes
and provide more equitable mort
gage basis, has completed in large
measure this specific task and Is now
concerned with the gradual liquida-
tion of loans which were made during
the emergency period. Much the same
thing is true of the short-time emer-
gency loans of the Reconstruction FL
nance Corp. and the Farm Credit Ad-
ministration. The money which has
been thus provided to individuals and
corporations through these emergency
agencies is now being gradually re-
turned to the Treasury.
Nothing would please the National
Government more than to be able to
end relief expenditures on July 1,
1886. But under present circum-
stances we can visualize what distress
such a move would cause. Even those
who now dissent most vehemently
with regard to governmental expend1-
lures would, until local conditions are
better worked out, admit the lack OF
wisdom in such action. No single step
would probably bring about such a
serious business setback as the i'm
mediate cessation of Federal relief ex-
penditures.
AS most major current issues Of dis
cussion revolve about the problems Of
unemployment, relief and budget bal
ancing, it is important that the atti-
tude and objective Of the national ad-
ministration in this respect be prop
erly and fairly interpreted. Obviously,
it was impossible to balance the Fed
eral budget when the budgets Of State
and municipal governments and OF
the private enterprises of the Nation
were going through years Of declining
income and mounting deficits.
Business Put on Its Feet.
In 1882, for example, business enter
prises paid out $4,000, ,000,0 more
than they produced. This condition
was q dangerous threat to the future
of the country. The growing strain
probably would have meant the break
down of our capitalistic system. When
everything else had failed, the Fed
eral Government had to step into the
breach. Today, for the first time in
six years, business enterprise as a
whole is maintaining current opera
tions and paying dividends without
drawing upon capital or other re-
sources to make up for deficits.
This means that in the near future,
with this trend progressing, the State
and municipal income and that Of
local charities will continue their in
crease, enabling those agencies to re-
ieve the Federal Government Of their
heavy financial responsibilities neces-
r. q - -