Evening star., 1937-11-02

point out that the two steps have little
or no relation to each other. 1t is
quite probable they were taken inde-
there was no consultation between the
Federal Reserve Board and the Inter-
state Commerce Commission.
Not only have the two steps no re-
lation to each other. One of them,
probably, had no relation to the drop
in prices. The raise in freight rates
by the Interstate Commerce Commits
sion was the result of hearings held
over a period of several months. AS
respects prices on the exchanges. the
raise in freight rates might have one
tendency or another; probably the
Commerce Commission, quite properly,
does not inquire. Similarly, the in
crease in freight rates might influence
general business conditions either IA
vorably or unfavorably.
Dream of Planned Economy.
But I do not here discuss the prob
able influence of these two steps. 1
cite them merely to use them as start
toward understanding Of broader
problem. I cite them to suggest how
President Roosevelt and other New
Dealers come to entertain their dream
Of planned economy.
Besides the Reserve Board and the
Interstate Commerce Commission,
there are perhaps 10 other Govern
ment agencies whose actions would
have a bearing on prices, and also on
general business. There is the Coal
Commission, which is about to Ak the
price Of COAL Fixing the price upward
will have one tendency, fixing the price
downward will have another. There is
the Securities Exchange Commission,
which could influence prices of securi-
ties either upward or downward. There
is the Tariff Commission. There are
several others.
Now 1t is easy to understand how
President Roosevelt and the advocates
Of planned economy would like to have
complete control of all these agencies;
how they would like to use all of them
as If they were the fingers of one
hand; how they think that II they
could use the agencies in this way
they could cause prices and business
TO move as they wish.
Agencies Are Independent.
But all these governmental agencies
are independent Of each other and, in
one degree or another, independent
of the President. Congress in setting
them up intended them to be almost
wholly independent of the President.
Since Mr.. Roosevelt took office some
| change has been made toward bringing
these independent agencies under his
control or influence. The process has
not gone far, however. Mr.. Roosevelt
| and all the New Dealers who believe in
planned economy would like to push
it very much farther.
II the dream Of the planners were
carried out, the dream Of perfect CO.
| ordination dictated by one man, we
could imagine a row of 10 or 20
push buttons on the Presidents desk.
He could push one button, and freight
rates would go up, or down; another
button, and prices of securities would
go up, or down: another button, and
tariff rates would go up, or down;
another button and interest rates would
go up, or down; another button, and
prices Of commodities would 60 up
or down; another button, and wages
would go up, or down.
Dream Entrances Men.
And one could imagine a superman
carrying all of these elements of in
dustry in his head, and so playing upon
the push buttons as to bring about the
New Dealers dream, a stable, un-
interrupted prosperity-no depressions
no booms. One can understand how