Evening star., 1937-10-30

MAIN uIlCndDESu, nayi5 Iamranne
and, unless Mr..
Roosevelt authorizes a modification OF
the politico- economic factors, the
business situation will tend to grow
worse instead of better.
The President made an interesting
confession to the newspaper corre-
spondents at Hyde Park on Friday.
He pointed out that the national in
come had risen from $4,000, 100000
in 1882 to a figure estimated at around
$40 1000, 100000 for the calendar year
1897. He said he hoped America
would sometime in the future get up
to S9OO00,O00 900 or 100000, 100000
of national income. But Mr.. Roose-
velt did not disclose what is common
knowledge among the economists In
the Government departments here,
which is that for the coming year
1898 they do not anticipate any ma
terial rise in national income from
$4,000, 900 000-the 1887 figure.
Federal Spending Background.
Nor did Mr.. Roosevelt reveal that
the rise in the national income in
the last three years may be traced
almost entirely to Government spend
ing and not to the natural forces OF
business which were operative before
1893. From a reliable source inside
the administration I have obtained
the following figures. showing how
much the Government spending was
a part of the increase in national IN
1900 tho lcc three wears.
Increase over preceding year-l934,
$1,000. 900 900; 1885, S5,4oO, 100000;
1885. $4,000. .000, 900. Net Federal ex-
penditure-1934, S3,200,00 100000; 1888,
sslOO.OOO, 900; 1886. $500, 100000.
Now it should be borne in mind that
Government-spent dollars turn over
at least twice so that II the second
row of figures above were doubled the
totals would be somewhere near the
actual increase in national income.
The meaning of this is merely TINS;
If the Government is going to stop
spending or at least to cut down ma
terially its previous outlays, directly
or indirectly, then private business
must have a chance to take up the
slack and increase its activity. An
eouitable tax revision is an essential
part of the plan and so is a CO.
operative attitude toward business by
Government.
It has been estimated by the ad-
nninistration economists that entirely
apart from the Government spenolng,
the Withdrawal of vast sums from the
purchasing power of the people
through the increased collection OF
taxes presents a very serious proolem
for the year 1888 and is one of the
principal reasons why the national
income is not expected to go up III
1888 very much, if any, above 1887.
Mr.. Roosevelt let it be known Fri
dav that he still is thinking OF the
one-third of the people who are Ill
housed. ill-nouriShed and ill-clad" and
that he wants to increase the pur-
chasing power of those who are en-
ploved as well as take care of the
UNEMPLOYED. But Mr. Roosevelt has
had four years to do it and has aooeo
meanwhile more than $4,000, ,00O,Ooo
TO the public debt and cannot go on
spending such sums without bank
rupting the Treasury.
Give Business a Chance.
So now the time has come to give
private business and industry cnance.
1t has never had it under the Roose-
yelt administration because just as
soon as convalescence set IN after
the bank holiday the administration
has come forward with surgical oper-
ations that have broken business
morale and economic health.
The best and most dramatic proof
that Mr.. Roosevelt holds the personal
kew to the situation, that he is the
virtual dictator of the economic des-
tiny of America today, came in Fri
day's stock market operations. When
published reports declared that the
capital gains tax and undlstrlouteo
profits tax might be revised or re-
pealed, the market went to a new
high since the bad break in quotations
on october 9. Then came word from
HYDE Park that the President didn't
intend to have these taxes changed
and the market took a nose dive.
Finally as press reports from Hyde
Park were more care1uuy examined,
indeed as they were amplifled from
the early brief bulletins of what hap
pened in the Presidents conference
with the press, the stock market rail-
lied perceptibly. For it was found
that. Mr.. Roosevelt was really non
committal about tax revision.
In other words, Mr.. Roosevelt can
move the market up or down at will
He can move American business up or
down at will. He can move up the
chances of the one-third OF our pop
ulation to get better housing, better
clothing and better nourishment. He
alone has assumed the responsibility
through extensive powers over the
economic life of the country and he
alone will get the blame as well as the
credit as the working people of Amer
ics lose their jobs or keep them, as
they get more in the pay envelope or
less.
Certainly at no time in American
history has one-man government been
as conspicuously exhibited to view, for
better or for worse in the life of the
American people.
(Copyrioht 1Q271