The Omaha guide., 1938-05-07
OPINIONS
Economic Highlights

~ 1PRoA NAAAJ 6A1oeAI 0il0GIC5Ni-
mated the Importance and sever
ity 0 fthe slump i nbusiness that
began last October.
Whether or not the President
actually took this attitude, it is
obvious that he now views the re-
eession as a major crisis which
has endangered all the gains
made since the depths of 1882.
Two dramatic events occurring
recently, wildly illustrate this.
First, his last "fireside chat"
was almost startlingly different
in tone and attitude from most of
its predecessors. As one anti Ad-
ministration newspaper, the Port
and Oregonian, described it,
There was no batting of business,
no %hatefulness of phrase, nor any
appeal to class consciousness. In
tead there was gratefully evident
the recognition of all classes of
Americans in a common American
ism, confronted by identical ques-
tions to be solved by ~fraternal
soution." In other words. the talk
was highly conciliatory. Whether
the President will continue to hold
such an attitude cannot be said
but it is a reasonable deduction
that at the present time the Ad-
ministration has reached the con-
clusion hat it is essential to ex--
tend a friendly hand to all ele-
ments in our national life, to dis
pei distrust and bitterness, to
cement so far as possible the war
ring factions, and to precede ire
FORM with an attempt at ire
covery."
Second, the Presidents message
to Congress shows how seriously
he regards present conditions. And
this message will continue to be
the subject of a tremendous
amount of debate and difference
of opinion. Briefly, the Admins
tration proposes to fight bad
times with the same weapon is
used to fight bad times before-a
pump-primirg program of asize
unprecedented before 1882. It has
three phases: /. Direct govern
ment spending, through the WPA,
the Farm Security Administration,
the National Youth Administration
and the CCC. 2. The release of
about $4,000, 900 900 in new credit
through charges in the gold and
federal reserve policies. 8. The
creation of new jobs through slum
clearance, highways, flood control
ard public works. IT was also
suggested that the SEC relax its
regulations somewhat in order te
make it easier fer small business
to get new money.
The entire program would re-
suit in the government spending
81, 100000 900 more than it is now
spending. Yet, while no provision
IS made for increasing revenue, it
+ said that this viii increase the
rational debt by only a third Of
that sum-. That seemingly magical
trick would be accomplished by de-
sterlizing part of our vast gold
reserve against which no gold GER
tfieates exist.
TIE former spending program,
which began almost IS soon as the
President took Office was approx
ed almost unanimously by Con-
gress and by the nation as a whole.
The present program will not meet
so enthusiastic . reception. One
bloc believes TIT the former
soer9ing failed, and another will
fail. too. Another bloc, even though
favors increased spending, will
be unwilling to approve it unless
some means of raising the moner
Is found. so as not further boost
the debt. A third bloc thinks that
tax and labor troubles should be
corrected before we try anything
csc and believes that if business
were aided in this manner it would
go ahead and spend on its own
hook, thus obviating or ~lesscning
the need for government spending
III q larger scale. All such blocs
are important and influential
and are manned by Democrats as
we'll as Republicans. 1t IS the
members of the Presidents own
net the opposition, that
have made the present session of
CONGRESS-, eliminating in the
startling defeat of the recorgani-
zetien measure. a stormy IN for
The White House.
There is the situation as it ex-
ists today. We are in a period of
lothargie business and, while the
eonsenus Of expert opinion does
not anticipate further declines, it
iops not anticipate substantial
Determent in the near future, Ell
her. The Congress is in a rebel
.ious mood. The President has TAX
IN a more conciliatory stand. and
t is believed that he will suggest
10 new UNUSUAL" legislation this
year. What that all adds up to is
,nybody's guess. One good guess is
hat we will hove greater snend-
ng. and a mild shot of initiation
,ut not on as big a scale as the
President suggests.
The Republican will gain about