Evening star., 1937-11-17

tunate deVelOpment that could occur,
because cooperation is absolutely es-
sentlal to prevent the business recess
sion from becoming worse than it is.
1t is desirable, on the other hand,
to examine the sources of discomfort,
because the President and his COL
leagues in the New Deal probably
never realized the damage they were
causing to their own cause over the
last three years by the frequently re-
iterated charges and epithetS.
The real trouble is that when the
President has made public reference
to business men he has impugned their
motives, accused them of both diShon-
eSty and SeltiShneSS and questioned
their patriotism. American citizens
who have conducted themselves law
fully do not relish such accusations
from a President of the United States,
nor do they forgive them the moment
it becomes to Mr.. RoOSevelts advan-
tage to adopt conciliatory tone.
Defeat Not to Be Admitted.
What the business men forget, how
ever, is that in politics it is not CUSTOM
ary to admit defeat or retreat Mr..
Roosevelt, for instance, could hardly
send message to Congress saying, Il
have been wrong in my policies. I have
been wrong in my charges and ac-
cusations. I want now to have the
past forgiven Such a statement
would never be made by a man in
political life, and yet the defeat Of
the New Deal economics is so plain
that a comment such as the above
Is superfluous.
Tho New Deal, as we have known it,
has ended. The reason for its ending
is the fact that public funds could
no longer be used for pump-priming
and the Nations credit be preserved.
When it became question of persist
ing in the New Deal or driving the
Nation to bankruptcy, the President
decided to change his approach and
rely on private capital spending.
Again and again, however. business
men ask, Does the President mean
it? Why didn't he say anything about
the business recession when he made
his radio address a few weeks ago
announcing the special session? Why
isn't he more specific now about tax
revision?"
Results to Clear Air.
All these questions doubtless seem
logical to those who ask them, but
behind most of them is an immutable
doubt as to the Presidents readiness
really to cooperate with business. Such
doubts will be erased in due time, but
only after the administration has fol-
lowed through on its own promises.
For one thing, Congress is in rest
i've mood. The eagernesS of the men,
bers to do something about tax re-
vision far transcends any interest
they might otherwise have had in
wage and hour legislation or crop
control.
There is a decided trend toward
legislation that will ease the burdens
on business and enable the economic
system to maintain employment. Most
members of Congress, irrespective of
party, know the old political rule that
when an election is held in the midst
of depression the ''ins" usually suffer
both in the primaries and in the final
elections. 1t is, therefore, natural to
find Senators and Representatives up
for election next November anxious
to do everything possible to bring
about a recovery movement before IL
months have passed.
Taxes Involve Little Fellows.
The drive at the moment is to revise
the tax laws. Small business men are
back of it and that means influential
citizens in every congressional dis
trict in the land The desire of Mr..
Roosevelt to punish the big fellows"
has only resulted in helping them.
The big companies with big reserves
could take the new undistributed
surplus tax on the run and hardly feel
1t. They had accumulated plenty
Of reserves before, SO they paid out
their dividends. But the small busi-
nesses trying to compete with the
bigger companies found themselves
unable to plow back their profits SO as
to expand and threaten the markets
Of the larger corporations.
But it was foregone conclusion
the bill would work out that way. The
administration was warned again and
again, but the brain trust was riding
high and Mr.. Roosevelt was calmly
indifferent to advice from anybody
with actual experience in the economic
system, including the Roper advisory
council. On April 2. 1896, this cor
respondent, rejecting the sentiment
which was then rising against the
undistributed surplus tax, wrote the
following dispatch: There are many
factors now in operation, any one of
which will doubtless be singled out
as the conspicuous cause Of the next
depression Just which one will be
selected for emphasis is, of course,
impossible to con lecture but 1t seems