Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-11-18
Reasons fer the ''Present
Feeling of Uncertainty
To the Editor Of The Star:


Chairman Jesse H. Jones of the Recon-
struction Finance Corporation is quoted
in the press as stating that he sees moth
ing ito justify the present feeling of
uncertainty and uneasiness." I am
filled with indignation that he should so
advise people instead of warning them.
Please permit me to state more incon-
trovertible facts sustaining my position.
Because of the uncertain policy Of
the administration the utilities are with
holding appropriations OF vast sums for
expansions and improvements that would
employ many thousands of men. We see
the utilities threatened with lower rates,
hostile legislation, unfavorable construc-
ton of present laws and even dis
Indignation.
In building construction very con-
siderable reduction in wages is absolutely
indispensable to a revival of that in
dustry. Such reduction is inconceivable
in the present attitude of labor and
Congress.
In railroad matters the situation is
especially critical, with prominent eco
nomists asserting that naturalization is
inevitable unless adequate relief is
given to them. We see the railroads with
decreasing business and increasing ex-
penses, and threatened with hostile
legislation, even with a proposed pro-
vision in a new farm bill for favored
rates to agriculture.
In the matter of subsidies to the high
pressure groups, especially to agriculture,
is it likely that Congress will be inclined
to Withstand the appeals of these
groups?
In the matter of taxation, it seems
to be the intention of the authorities
that any revenue lost by revision of
certain odious forms of taxation must
be replaced by other taxes Business is
uncertain where such new taxes will
fall We see an apparent inclination
by the taxing authorities in affording
relief to discriminate in favor of the
very small corporations which are often
owned by few stockholders of means, as
against the large corporations which
have great numbers of individually small
investors among their stockholders, and
frequently as narrow profit margin,
relatively, as the smaller corporations.
In the matter of a balanced budget,
we cannot help remembering that every
year for a long time there has been
such promise or such hope held out.
In labor matters there is continued
unrest with a prospect that as fast as
any relief is afforded to an industry
such relief, or a large part of it, will
be absorbed by further labor demands.
In addition, there is the constant
anxiety. especially in the case of small
or weak corporations. about what new
wage and hour legislation would do
TO them. Moreover. notwithstanding
the present recession and uncertainties
in business, we see labor making prepa-
rations for renewed activity against some
of the largest industrial organizations
whose liberality to their employees is
we'll known.
In the matter of the security markets,
there is great nervousness. with the
prices of many securities still unduly
high, and quite certain prospect that
for some time, at least. corporation earn
ingS will generally be lower than they
have been. Moreover, the presence of
Congress generally has a disturbing
effect upon these markets. We saw the
stock market slump Immediately after
the reading of the Presidents message
to Congress, and we see continuance
OF that slump at this writing.
In the matter of foreign relations
there is the ever-increasing fear that
this administration will work its wav
into position where there will arise an
almost irresistible demand for increased
military expenditures requiring immense
increases in taxation. We see a great
labor leader going to the Soviet EN-
bassy, and an increase in Communism.
with our merchant marine threatened,
and We see prominent Democratic
Representative asking the Secretary of
State to sever diplomatic relations with
Soviet Russia.
In view of the foregoing observations
1t must be assumed that Mr.. Jones was
only endeavoring to put up brave
front and reassure people, an effort of
perhaps doubtful expediency. There we're
many such reassurances in 1929
HENRY A. HAYWARD.