Evening star., 1936-12-31


groups in the
electorate. And the election demon
strated that the liberals, possessed al
ready Of a vast governmental power TO
bestow direct benefits to the citizen.
commanded an unprecedented ma
jorlty.
Now the question of definition OF
what is really liberalism has been de-
posted on the doorstep of the party
In power and nothing that has hap
pened since November 3 has given
anv clear indication OF how FAR
toward the radical left or how much
in conformity with the conservative
right the second administration OF
President Roosevelt IS to move.
More than ever, 1896 emphasized
the consolidation of the executive and
legislative branches of the Govern
ment as we'll as the merger OF political
and economic power in a centralized
government. Much Of the legislation
adopted merely sketched the reforms
that now are challenging the ingenuity
Of the New Deal administrators TO
make them WOrKaDle.
Evolution of Capitalism.
Broadly speaking. the clash between
a controlled capitalism and capital
ism that has been limited in only
few particulars heretofore, has placed
upon Government itself some enor-
NOUS responsibilities. The year 1885
will ever be remembered as a turning
point in the evolution of American
capitalism, for it strengthened the
hold Of the Federal Government on
the national economy and committed
the Nation, for the time being any
way to policies Of controlled or man
aged economy.
Before the election slow progress
was made, due largely to a feeling
that the courts would protect the
citizen against confiscation of his
property and to a more or less wide
spread reliance on the Supreme Court
as the last bulwark of American in
dividualism.
Since the election no such conf
dence that the Supreme Court will
prevent confiscation prevails. This Is
because the administration has avoid
ed the announcement Of any direct
plan to place constitutional amend
ments before the people and is in
stead waiting for opportunities to ap-
point judges who will decide matters
along lines pleasing to the political
administration that happens to be In
power.
I'VE don't need any constitutional
amendments to get things done-let's
Just liberalize the Supreme Court
that's the viewpoint expressed again
and again by high administration ON
cials and by members Of Congress,
who are planning all sorts Of twists
and turns to legal phraseology with
the hope OF giving the present Su-
preme Court a chance to reverse itself
or with the idea of passing laws that
will be ruled upon by q new personnel
in the court in the next two or three
years.
Business More Friendly.
From the standpoint Of business
which for the most part feared the
reelection Of the New Deal and then
} after election made many gestures of
friendly cooperation, there have come
indications of q feeling that controlled
economy cannot be resisted for a while,
anyway, and that the slogan Of the
hour is "let the New Deal find way
to make its laws work"
This implies that as the Federal
Government assumes more and more
responsibility as 1t passes more and
more laws and issues more and more
regulations, the whole thing must
some day add up to restoration Of
employment to the millions out Of
work and also to ammunition of
government expenses, or else imitation
will reach acute proportions.
In the last few weeks the New Deal
has given many evidences Of a reallza-
ton Of the dangers of q sky-rocket
price situation. Indications are that
the Federal Reserve Board, headed by
Mariner Eccles. who has been an
ardent supporter Of the spending
policy, Is now switching to q more
conservative course lest we have 1929
over again. Too many people have
been led to believe that Wall Street
wizards are the only ones who can
make financial trouble for the Amer
lean people, whereas manipulation of
public funds by excessive borrowings
and excessive expenditures can bring
precisely the same result-a run on the
dollar.
Roosevelt Holds Key.
Since the November ; earthquake
che New Dealers have exhibited signs
Of wanting to keep the struggle be-
tween the right and left from forcing
their own policies to extremes. The
lniddle-o the road idea has become
popular, but the keyman In the shap-
ing Of such policies Is President
Roosevelt.
70 avoid immediate decisions, to
give the country q chance to digest
the election and its effects, there oc-
Cured . breathing spell during which
Mr.. Roosevelt made remarkable ef-
fort for world peace by means Of
speeches delivered in Argentina and
by treaties proposed by the United
States for the maintenance Of inter-
American peace. This will stand out
- the crowning achievement Of the
year In foreign affairs plus, Of course.
the growing determination to maintain
. peace e-at-any-price policy through
the avoidance of entanglements over
the shipment Of arms and munitions
to war areas Of the world.
While Mr.. Roosevelt was In South
America, the Nation took stock of the
election and business men, assured by
New Deal friends that they had little
to worry about, went ahead in many
instances with plans for expansion.
The demand for goods occasioned by
the shortages that have piled up in the
last three or four years has given the
price level an upward boost and has
stimulated unemployment. But the
steady growth OF Q labor crisis which