Evening star., 1936-03-09
GOV. Toilette
DEFENDS i. S. DEBT
Town Hall Told Increase Re-
fleets Vital and Growing
Economic System.

Government debts as essentials to
the return to prosperity" were defend
ed at the Town Hall of Washington
last night by Gov. Philip La Toilette,
Progressive of Wisconsin.
Debts are certain to increase as long
as the economic system is vital and
growing" the Wisconsin Governor
said, and have little sympathy for
the New York financiers who worry
about the unbalanced Federal bud
get Under any credit system there are
bound to be debts"
La Follette's remarks were heard by
approximately 1900 persons at the
Shoreham Hotel. A sprinkling of Sena-
tors and Representatives, including
the speakers brother, Senator Robert
NJ. La Toilette Of Wisconsin, was seen
in the audience.
While Gov. La Toilette admitted
''the grand total of debts ought to be
paid eventually" he denied that the
problem should cause any immediate
concern.
Purpose Is Question.
"The fundamental question" he in
sisted, lis not the size of the debt, but
the purpose for which it was created.
1t is an indication Of prosperity when
a country'S credit is used for increasing
the total wealth"
Until questioned by panel of speak
ers at the conclusion of his main ad-
dress, the Governor avoided specific
criticisms of the Federal relief and
economic program Later, however, he
Cited examples of what he termed 'un-
intelligent" w. P. A. and P. w. A.
projects and stressed the need for
sound, long-term investments which
will raise the standard OF living
throughout the country"
A recognized leader in the Progress
sive movement for third party, Gov.
La Toilette was introduced to the Town
Hall audience by Huston Thompson,
Washington lawyer, who referred to
him as a possible future presidential
candidate. The Wisconsin Governor
declined to discuss in detail the tenets
of his progresslvisn, however, and
made no reference to his present po-
litical prospects. He made no COM
ments on pending legislation and only
once-when he asserted President
Roosevelt is not heading America to-
ward dictatorShip-did he mention
personality on the current political
scene.
Flow of Capital Needed.
The sneaker was emphatic in stat
ing that the sound economic future OF
the United States depends upon get
ting the flow of capital back into pro-
ductive enterprise"
America recovered from previous de-
preSsions. he declared, by advantage OF
a Western frontier which constantly
beckoned for capital But in this gen.
Grafton, he continued. the frontier II
the old-time sense has disappeared
and we must now recognize the oppor-
tunities for long-term investments II
raising American standards Of living
by making investments which pro-
duce expanding markets we can re-
turn to the land of opportunity which
should be the birthright Of every
American boy and girl" La Toilette
said, but reinvestnlent of capital CAM
and won't be done by purely private
initiative"
He scoffed at conservatives who
claim the flow of capital will start
when confidence is restored" Ad-
mittedly. a nation must have conf.
dence, he said but contrary to popular
belief the lack of confidence has
nothing to do with the gold standard
or a balanced budget. Our nationa
lack of confidence is simply the tota
of individuals lack of confidence il
their own ability to earn living"
Private Budgets Unbalanced.
The Governments budget is unbal
enced, he told his audience later, sim
ply because the budgets of its men anc
women are unbalanced.
The Governor was insistent that an,
Government economic program shoulc
provide every citizen with an oppor.
tunity for gainful employment. "a
dole" he said, would corrupt anc
undermine our economy and morality.
In answering a question propoundec
by a member of the panel, William S
CulbertSon, former Ambassador te
Chile, La Toilette affirmed his belief ir
democracy and the wisdom and ability
of the electorate to control govern
mental policies. All this talk about
President Roosevelt being a dictator is
just a lot of 'flub-dub," he remarked
Besides Culbertson, the panel in
cluded Ernest o. Draper, Assistant
Secretary of Commerce; Represen.
tative Brewster of Maine and Russell
j. Clinchy, pastor of Mount Pleasant
Congregational Church and director oi
the Congregational Council for Socia