The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1937-10-19
achieve the ends sought.

1t Is based on 1alSe theories OF economies
and sociology.
1t does not work because its alleged
principles and its policies are contrary to
all established and sound social and eco
nOmic principles; and its policies have
been the fantastic pipe-dreams Of an ag-
gregatiOn of men and women, who, as Tar
as their common sense and practical eXpe-
rience are concerned, are 4 bunch of nit
wits.
The new deal has not worked. The Pres
ident admits it and the country knows it.
The new deal is not working now. The
President admits it and the country knows
it.
Yet he calls for more Of it and is rear
ing" to shove the country deeper into the
mess
The United States News concludes its
expose of President ROoSevelt'S economic
falacieS with this, which is worth read
ing:
In the second point of his speech Mr.. Roosevelt
said that American industry had searched the out
side world to find new marketS--but it create
on its very doorstep the biggest and most perma-
nent market it has ever had" He adds:
America needs the reduction of trade barriers
to improve its foreign markets, but It should not
overlook the chance to reduce domestic trade bar
rerS right here-right away-without waiting for
treaty. A few more dollars week in wages,
better distribution of jobs with shorter working
day, WILL almost overnight, make millions Of our
Iowestpaid workers actual buyers of billions of
dollars Of industrial and farm products That IN
creased volume of sales ought to lessen other costs
of production much that even considerable in
crease in labor costs can be absorbed without I'M
posing higher prices on the consumer"
No. Mr.. President it isn't simple as that We
may add a few more dollars week in wages and
should do if but labor cost isn't the only
item in the manufacturing price The government
has been adding taxes rapidly that even the
well-intentioned social security and unemployment
insurance tax on payrOIlS has constituted unt0r-
tunately one of the biggest of trade barriers. In
the present fiscal year this tax alone amounts to
about one billion dollars over and above all other
taxes This unabSorbed burden has helped to raise
prices and curtail consumption and may be reSpon-
sble for the present decline in business Our total
tax bill--federal, state and city--iS now taking
nearly II per cent of our national income highly
dangerous ratio for well-beng; and it must yet
90 above 20 per cent to achieve a balance between
expenses and receipts. This does not augur well
for low prices As fast as Mr. Rooscbct would
take away one trade barricr-lack Of purchasing
power--he unwittngly adds others.
What the President minimizeS, in my Judgment,
is the opportunity in the foreign markets of the
world Abroad is big market The rest of the
world is so impoverished that it has had to accept
IL, alt Dot to
working capital We have such capital in abun-
dance buried in the form of devalued gold in the
hills of Kentucky. We can use $4,000 100000 Of
that gold-the devalued portion-to sustain a
Worldwide resumption of the credit flow which
alone can transform a worldwide depression into
a worldwide recovery.
Unhappily the President veerS away from the
implications of his Chicago speech. He reverts now
to economic nationalism. He does not speak OF
proposed domestic controls as emergency or tenn
porary measures to be used until the foreign mar
ketS can be developed but refers repeatedly to his
plan as designed to build "Sound and permanent
prosperity. He waverS again between the Wallace
doctrine of sef-cOntainmcnt and the Hull doctrine
of international trade.
Volume of business and sales can be increased
for us more inexpenSively by building up the for
eign market and financing it with our credits than
by continued doleS, deficits and attempted IMPOSE
ton of the fascist method of regimentng labor,
agriculture and industry, in limited domestic
market.
If we are to choose between the two systems,
then the lending of capital funds based on de-
valued gold is the least painful of all plans and
the best in the long run. For it is inconcelvable
that under the present labor union system IN
America there will be any Speed-up in production
or increased output The data thus far gathered
shows that increases in the total of labor costs
have been attended in the last few months by
decrease in production per worker. If follow
that kind OF economics we are headed for major
depression worse than that from which thought
we were just emerging.
There ought therefore, to be REORGANIZATION
of its economic doctrines by the administration and
an end to the hypocrtical talk about the economic
royalists" who if the antitrust laws had been en-
forced by Mr.. Roosevelt in the last four and hall
years. would enjoy monopolistic power today
What we really need is not so many political royal
lists. but a goodIy number of economic reaiStS,