Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-11-18

ognized here that the skepticism
which. rightly or wrongly, exists out
side of washington about the meaning
of the Presidents message to Congress
can be removed not by words but by
action
If Congress, therefore should in the
next few days do something about the
undlstrlbuted surplus tax, it would
carry great weight with the business
elements of the country. For it would
be step that indicated the alertness
of Congress to the business problems
of the Nation and also the readiness
of the President to make action square
with the promise he has just made to
encourage private capital spending.
Psychology of Congress.
The psychology of Congress is be-
ginning to be an important factor in
the restoration of confidence in the
business world. Up to now Congress
has been regarded as a rubber stamp
institution which would okay the
widest spending plans and all the
economic fallacies that might emanate
from the brain trust. Today, however,
the special session of Congress really
Is a godsend to business because an
opportunity is afforded for prompt
action toward a reversal of the policies
that have brought on the market
paniCs of 1887
To a certain extent. of course. the
present business recession is the result
of unWarranted fears about the future.
but to an even larger extent the key
to the future lies in stilling those
fears and preventing new ones from
arising
Whether it is fear or not, or can
collation. Of orders due to diminished
demand, the facts about the increase
in unemployment are impressive Thus
the National Industrial Conference
Board has announced that a tele-
graphic survey based on information
received by wire from more than 1900
companies regularly reporting pay
roll data to the board shows employ
ment to have been 989 $50 in August
of this year, 967,510 in October and
now it is down to 926,368 as of No
vember Is.
This steady decline has been &C
complished also by a considerable re-
duCtion in the hours of work due to
lay-offs.
Some of the radicals and so-called
liberals in Congress are, of course, un-
willing to recognize that business re-
ceSSion even exists. They gloss it over
in their public statements and they
are getting ready to oppose tax revl-
sion and any of the other constructive
steps that might be urged to help
economic recovery.
Attitude of One Faction.
Some Of these elements are truly
socialistic at heart and have no inter-
est in preserving the system of private
initiative or private capital, and would
just as soon see chaos as recovery be-
cause it would open up opportunities
for more Government control and reg
ulation as we'll as Government owner
ship. These men are sincere in their
beliefs and are cOnSclontiously of the
opinion that America would be better
off with public ownership of most
businesses and industries than under
private ownership.
But the wing of the Presidents ad-
visers that believes in such things is
not at the moment as favorably re-
ceived as the economic advisers who
are counseling that everything be done
consistent with fairness and equity to
encourage the functioning of the pri-
vate capital system. There is trend
toward constructive solutions more in
line with what orthodox economists
have recommended.
In Congress some of the Democratic
leaders are saying they cannot get the
revision of the undistributed surplus
tax through even though there is a
substantial number of both houses &C
knoWledged to be in favor of the
change. Perhaps some more data on
the business recession will have to
come out before some of the politically
minded, who still are clinging to the
illusions of 1886 and the everything
Is rosy" idea of last summer, will bow