The Western news., 1937-06-17
SEEN
HEARD
around the
NATIONAL
CAPITAL
By Carter Field y

WaSllnBl TON. lie BOUu olu udy D
O. 1929 are not coming back-are
not en- route-are not even desired
by the New Deal. This has been
said by President Roosevelt many
times, but its present Importance
lies in some figures recently sub
mitted to a group of economists by
DR.. Harold G.. Moulton, president
of the Brookings institution.
DR.. Moulton made some very in
teresting comparisons with 1929 en-
ployment and production figures.
Some construed the chief thought TO
be that the country has not arrived
yet at a situation where enough OF
everything for everybody can be
produced by people working only
forty hours week.
But more significant, in the view
of some of the New Dealers who
have been studying his attitude,
is that the doctor made liberal
estimate about the number of men
who could be employed-in addition
to those working at present-in
what are classed as the durable
goods industries-primaril5' indus
tries which produce machinery and
other things which are not used up,
but generally add to the country's
productive capacity AS for exam
pie, new blast furnace, a new
newspaper press, new canning or
textile machinery--in fact, machlr1-
cry of any sort.
DR.. Moulton estimated that more
than eight million more men would
be employed in the durable goods
industry If 1929 conditions were to
be euualled. This does not mean
that precisely that number less are
employed now in the durable goods
industries than were in 1929 Allow
ances are made for increase In pop
ulation and other factors.
But the chief point here made by
the New Deal economists Is this
huge number Of persons employed
in the durable goods industries was
one of the really vital things wrong
with the then situation-one OF the
important factors which resulted in
the collapse-one of the contribut-
ing causes to the situation which
the New Deal is seeking to correct.
Logic Is Simple
President Roosevelt does not be-
heve such large proportion of the
country's labor should be used In
the durable goods industries as was
SO employed in 1929. His logic is
simple though not very widely TN
derstood.
His point is that too much OF the
earnings of the big corporations In
the good years preceding the crash
was plowed back into the business.
Too many units in the various in
dustries, he points out in conversa-
tions, decided that business was
good, they could sell more goods
than they could make-so they buil'
an additional plant. :
The result was, that instead o.
these earnings being distributed
whether. to labor, to stockholders
or, by reduced prices, into creating
a larger purchasing power which
would absorb more goods, the,
were frozen into plants for the prod
ucts of which the day came Wher
there was no market.
Immediately the situation spread
lack of confidence was inspired, peo
pie began to save and hoard money
and the factories stood, as he likes tt
say, stark and idle"
So the New Deal economists woult
dread the day when DR.. Moulton''
estimate of how many more mer
could be employed in the durabl,
goods industries might be realizes
in actual employment. They Woult
figure another 1929 crash would fol
low very speedily.
Popularity Declines
Probably the decline of Presiden
Roosevelt's popularity is muc
more real--certainly it is muc
more obvious-on Capitol Hill tina
/ is out in the country. Senator
and representatives in private con
versations admit that they believ
the President has lost only frac
ton OF his following in the country
Proof OF that pudding will no
be evident until there are some sic
nificant primaries, in which som
anti-New Deal Democrat puts up
real battle.
But on Capitol Hill there are
surprising number OF Democrat
who seem anxious that the Pres
dents foot should slip little. 1t
one of the reasons why the figh
against enlargement of the Suprem
court has become SO important
and so bitter.
Most of the insurgents do not e,
plain why they are insurging-the
claim that in each particular case
be it the court, or the reorganiz;
ton, or federal economy, or th
PWA, or what not, much to the
regret they have been forced to OF
nose the President
1t is perfectly true that they.
most instances at least, are real
opposed to the President on these /
sues. But there is an underlyin