The Waterbury Democrat., 1936-09-26

'e extremely favorable.
 trialists, and former politcial leaders cooperated in the corn- mon cause of sound government, without giving themselves over to hysteria and vain regrets. When, subsequently,, the activities of the Labor Party met the displeaSure of the British electorate, the La bor Party was turned out of of flee. This so-called radical event proved to be without menace to then interests of the Conservative. class.
 Cheap Money
 One of the most favorable fac- tors for the future of business is the plentiful supply of money and its cheapneSs: i. e., the low interest rates. Plentiful money, represented by bank demand de- posits at new high levels and by total bank deposits at figures al- most equal to the pre-depreSSion levels, spells but one thing-wide- ly distributed purchasing power with consequent ability to buy goods.
 We have an enormous un- filled demand for housing, rail- road equipment, industrial plants, public utility plant equipment, etc. This is large- ly due to the limited replace ments of six years, plus the < vast improvements in the qual- ity of such items available to- day. Improvements in design
 or efficiency have a tendency to accelera ObsOlescence. Such obsolete equipment Is more like ly to be replaced in an era of plentiful and cheap money, as witness the recent Bethlehem Steel company's financing whereby $40,OOO,OOO is to be used in order to fight Obsole- scence by new plant construc- ton.
 In particular, residential con- struction for six years has been far below the heeds of the coun- try. There are many signs that this feature of our economy is about to expand with & conse- quent absorption of a multitude of our unemployed. The experts do not hesitate to say that once the building trades began to boom, all phases of our economic life will be given great stimulus.
 To be sure, business activity cannot be expected to continue in an upward direction indefinite 1y, and we can be certain of a change in the trend eventually, but not in the near future. There may be minor disturbances act- ting as a temporary setback, or there may occur 8 major setback such as the defeat of the PreSi- dent, which would break our for- ward economic progress. I re- gard such a development in the neaur fture as unlikely.
 Changing Horses
 One might suspect that the ar- gument against a change of ad- ministration sounds a bit like the discredited argument of MT Hoov- CT for mot changing horses" There is this vital difference: in 1892 the driver was bringing the country almost hourly from bad to worse in a deflation which was causing widespread misery. President Roosevelt, on the other hand, has demonstrated amazing skill in rescuing the country from the depths of despair.
 Perhaps two other cbserva-
 tions are relevant to the ques- tion of a change of administra-
 ton and . guess about the fu-
 ture of business. In the first
 place, congress is bound to be democratic. The democratic complexion of the senate is .
 mathematical certainty; change in the house very un- likely. If the President should be defeated, we Light be forced
 to endure 8 repetition of the last two years of the last ad-
 ministratiOn, when political dif-
 ferences made leadership in
 government so difficult.
 In the second place, the friend ship of labor for the President is so pronounced that his defeat might be taken by labor to mean that the country resents ths Presidents activities in their be- half. Such an attitude of mind would make the peaceful setle- ment of industrial disputes even more improbable. Remember many thoughtful capitalists aware of the worldwide unrest regard the New Deal with friendlinesS because it enables our system to "bend without breaking.
 War Menace
 Now 8 word about the foreign picture. Even the most con- firmed optimist must view the in- ternational scene with concern. The lesson of the Great War seems to have been lost on all leaders but the President. But the development of the goo neighbor policy, he has increased our prestige abroad.
 In the field of Latin Ameri- can relations. the restored con- fidence resultant from this policy is hamburger of increased trade already in process of improve ment. Although the State De- partment trade agreements have been in force only in Q limited fashion as yet, already we can appraise them as a definite and realistic. contribution to 8 world economy which is thoroughly maladjusted through tariffs, quotas and other restrictions.
 The President is a capable hand at this game of negotiation. It is my view that he will be able to improve our condition in an in- ternational sense and to limit in every possible way the evil con- sequence of the turmoil abroad.
 THUS, WITH PRESIDENT
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