Evening star., 1937-10-23


that Mr.. Roosevelt avoided the sub
iect. It was that the newspaper men
did not ask the questions. Out Of
perhaps 20 questions asked. only one
bore on the state of business. and u
was not pressed The President gave
the reply appropriate TO any casual
question; he merely said in effect
that he presumed the departments
having to do with business were tax
ing account of it, There was also
one question about the budget, but
that was equally casual and the reply
likewise casual Most OF the ques-
tions were about other topics. Some
probably would have seemed, to
New York excited about business. I'M
piously trivial. There was question
about whether the President has IN
his stamp collection any example Of
stamp issued by Nicaragua, the
design Of which gave offenSe to Hon
duras. leading to conflict between the
two countries. Another question was
about whether the President had
heard anything of the plans for the
coming American visit of the Duke
and Duchess Of Windsor.
Shops RefleA Stock Market
The difference between the Wash
ingtnn calm reflected by the news
paper men and the agitation Of New
York ALWAYS exists in the first stage
of ANY striking movement of stock
exchange prices. whether up or down
Much of the business OF New YORK
as whole. not only the business OF
Wall Street but the trading in the
shops. is directly related TO activity
on the stock exchange. In rising
market much Of the buying in New
York shops reflects periodical skim
ming of the cream of profits in Wall
Street. In falling market. local
New York business becomes anxious
earlier and to a greater degree than
business throughout the country.
without doubt. official Washington,
in its inner councils. is taking alert
notice of the fall that has occurred
in securities prices. in many commod-
ity prices. and in the indexes of the
volume of activity in industry. The
administration has seemed to have,
up to this moment, at least four spe-
cific policies which would be strongly
affected by drop in prices and a
decline in business activity. These
policies are in any condition incon-
sistent with each other. and all would
be made more difficult by business
recession.
About industry, Mr.. Roosevelt in
his latest radio talk recommended
lower prices-lower prices. that is,
for the goods manufactured by indus
try for consumption by the public.
Lower prices, he said. are the path TO
prosperity and to reduced cost of liv-
ing. With this attitude of the Presi-
dent many economists would agree.
But from the administration point
of view. prices of manufactured goods,
taken in connection with volume,
must not go so low as 10 leave no
profits to industry. It is out Of profits
that taxes must come, and the ad-
ministration must have the taxes.
Especially must the administration
have the taxes Just now when. by
many signs. Mr. Roosevelt seems
more seriously bent upon balancing
the budget and upon cessation of
borrowing than At any time before.
Debt at Ali-Time High.
If there is ahead a business recess
sion sufficient to reduce the volume
of taxes paid into the Treasury, then
balancing the budget presumably
would be once more postponed. And
postponement of balancing the budget
is the more serious now when pre-
vious postponements and previous
borrowings have brought the public
debt to an all-time high of more