The Waterbury Democrat., 1937-10-20

national prosperity and der
 Exhibiting these charts, Roose. welt explained that 1t was his chief ambition, as President to eliminate the peaks and valleys, to keep the United States travel ing on an even economic keel, slightly upward, but ct not too great c speed.
 Then he went on to explain in detail the principle of controlled production behind the NRA and AAA.
 TODAY, the President faces the task of carrying out his 1883 ambition by checking the stock market slump, which some baronS of business fear b spreading to the country.
 Favorable Factors :
 Fortunately there are two fac- tors which should make 1t fairly simple for him to do this:
 1. Government has become
 90 centralized in recent years,
 especially under the New Deal,
 that it iB much easier, by throw.
 ing the force of the government
 into on economic breach, to
 check 1t.
 2. Slight business roceSBionS
 are usual when Q nation is
 climbing back 10 prosperity. Two
 already have occurred during
 the New Deal, both c little
 worse than the present. There.
 fore tho present recession should
 Do checked more easily.
 Tho most severe slump since the New Deal occurerd in the sum. iner of 1883, just five months af- ter Roosevelt took office, Stock values dropped one-half Of what they had gained, and it took exs actiy four years for them to come back to tho July, l033, level.
 There was another drop in the summer Of 1O34, lasting five months, during which stocks went back to their 1OSS lowest levels.
 Three minor business drops occurred, iT addition to tho above, none of them serious.
 Tn other words, climbing out Of c depression B c process of fits and starts, and this was also true in previous deprossio1s.
 Doctor" Roosevelt
 From the Presidents point of view, there Is ono good thing about the present recession. It plays directly into his hands In helping to SquejCh revolt from within his own party,
 Hc chn now say with some juB- ticc: Congress deserted old D0C- tor Roosevelt just when the pa- tiont was getting well, and now you sec what happened"
 There h nothing like the fear Of depression to whip recaicitrant congressmen Into line. And oil tho good old-lIne Democrats who wore such loyal party iflembOrs that they secretly sabotagod Roosevelt on the wages.Rnd.hours bill and tho farm bill last RosBion, now should come gAlioping homo to rooBt,
 THIS IS EXACTLY WHAT THE PRESIDENT IS COUNTING ON WHEN THE SPECIAL SESSION OPENS NOVEMBER lb.
 Economic Medicine
 The Administration has . lot Of economic medicine in It's closet to bolster business. Here gre some Of tho possible doses;
 1. Issue currency against steriliSed gold now lying idle at Fort Knox, Ky. This was done not long ago with eS00,000,0o0, but there still iB enough gold, both AtoriliEed and in tho stabiliEation fund, to issue thrOo billions more Of currency,
 Used, for instance, to buy Up taxsexempt government bonds, this would start . healthy stream of money flowing into ether invests Fnents. Holders of taxsOxempb bonds would have to find sofne other place to put their money.
 2. Housing. This was the way tho British pulled themselves out of the depression. So fer, under Roosevelt, housing has been uns touched.