Evening star., 1937-03-13

EF3s::;$;1 $s't eIllo SOilllllellt OH
David Lawr.nc, the Presidents
references to the
three branches of the Government,
That man Roosevelt is pretty
smart, isn't he? That parable about
the three horses was pretty good It
Il true that if one horse wants to
work steadily and according to the
rules OF good blowing, and one wants
to lie down, and one wants to get
of sidewise, they won't get much
good plowing done. I'm glad he sees
that.
Now there's the Supreme Court
going straight ahead plodding along
IN the furrow right next to the Con-
stitutlon just as it always has, while
Congress has sort Of laid down and
the Executive is trying to start off at
left' angles. II Congress would get
up and pull, and if the Executive
would gee about they could all work
together and the plowing would soon
be running straight in true American
fashion and the field of liberty and
freedom would be producing more
wealth for all Of us to share"
Strike Epidemic Causes Concern.
Who is pulling apart and what is
keeping the American system at the
moment from making the economic
gains that should be coming in a
recovery after severe depression? I
have talked to various officials here.
many of whom do not disguise their
concern about present conditions. The
supreme Court controversy has its
psychological effect but it is of rela-
lively no significance now compared
TO the comments that are coming in
about the disastrous results of the
'sit-down" strike epidemic.
The absence of a definite labor pol
ICY and the moral support being given
the cause OF violence in labor disputes
by the administration itself is one
Of the strangest phenomena of the
New Deal, which heretofore has
sought by law to accomplish an eco
nomic recovery The tendency to
allow the Department OF Labor to en-
courage 'sit-down" strikes has not
been reversed by the President, and
there is every reason to believe that
the administration has settled down
to feeling that labor war is not only
inevitable but actually necessary to the
redistribution Of wealth idea spon-
sored originally by Huey Long, but
now championed by the New Deal in
various ways.
One reason for the hands-off policy
on the labor situation may be the de-
sire to bring about checks and re-
straints against the coming boon. Vir-
tually all other controls of a credit
nature seem to be without success
Another dose of reform legislation per-
hape will be more effective.
Business Affected.
Certainly since the administration
virtually condoned the "sti-down"
strike, American business has been
moving along in zigzag fashion The
full effects are not yet noticeable, be-
cause in the first few months Of this
year, manufacturing concerns have
been busy filling orders given in the
latter part OF 1886. But just now in
many lines there is beginning TO be
apprehension that the recovery move
n1ent will be subject to severe strain
In 1887.
Inside the Government there are
economists who feel that nothing can
stop the upward movement, that a
boom is coming and that strong meas
ures will have to be taken to avert
repetition Of 1929, though they put
the climax in 1898 or 1889 There are
some inside the Government, too, who
believe that the labor struggles will
be short lived, that capital VIII quickly
surrender rather than suffer q stop
page of production, and that all will
be we'll just as soon as every demand
OF the labor groups is granted.
Smoke Screen Suspected.
From all these views one gets the
feeling that perhaps the truth is not
visible TO the naked eye at all. An
important Senator who happens to be
opposed to the Presidents plan for en-
hrging the Supreme Court, tells me
he believes the whole Supreme Court
controversy is Just smoke screen to
hide a serious economic situation. He
says his letters from the West indi-
cate that things are not as good as
they seem in the farm areas or in The
small towns and cities.
Certainly the demand by six Gov.
ernoTs. including the Governor o.
New York State that w. p. A appro.
priations be continued on an extensive
scale, is proof that the spending o
billions TO promote recovery has no
fulfilled its objective in the populou.
States. Private industry hasn't beer
able TO absorb the unemployed. It!
efforts have been thwarted by exces
sive governmental intervention ant
governmental encouragement OF labo
sabotage. Demands for 40-hou
week have become camoufage fo
simple demands for increased wages
Wages Buy less.
Ultimately the increased labor cost
are going TO be reflected in increased
prices and when these get beyond tn,
buyers capacity TO pay there will b.
q drop on in buying which in turn vii
increase unemployment. II the Ney
Deal had developed effectively
omy there might today be no decreas
in real wages. AS matters stand no,
the wage envelope is buying less an
less notwithstanding the increases i
money wages.
This isn't true OF all lines but it i
true OF so many, especially those i
white-collar classes and groups wit
fixed incomes that the real curve wort
watching will be drop Off in tots
consumption as prices get out of lin,
None of this is In the slightest wa
related TO the size OF the Suprem
Court. But every centralized govern
ment has its allbis--and the one fc
the next depression is not going to /
Wall Street or the money changers
or the spectators but the nine me
on the Supreme Court, who Just no
IVA 1otr t,11 $r .