Evening star., 1938-01-27

prONC Sy III $1,000 2.!S::::3
must recognize, &S
etc." there are David Lawrence.
readers in the
business world who think he himself
has lost confidence in the profit sys-
tenn and has moved over to the social
istic school of production for use"
Had the President said 'Those OF us
who believe in the profit system must
recognize, etc" maybe the stock
market on Wednesday would not have
had its worst drop in many days.
From the left wing-the radicals
comes another kind Of blast against
Mr.. Roosevelt. 1t is reminiscent of
Hoover days. The argument is ad-
vanced that Mr.. Roosevelt is doing
nothing" and that he should do
something" John l.. Lewis taunts
the administration with the cry that
1t should be prepared to spend billions
Of dollars more right away.
Richburg's Advice Sane.
In the face of these conflicting
forces. the sanest and perhaps the
most thoughtful and penetrating utter
ance that has come in many day is
the address by Donald Richburg on
Wednesday evening in New York.
Unlike the outbursts from Messrs.
Ickes and Jackson, the man who served
as general counsel Of the N. r. A. ex-
presses in persuasive terms the prob
lem of transition faced by world
democracies.
The Government of the United
States and the business of the United
States cannot live apart" says Mr.
Richburg. Government and busi-
ness, as We know them today. will
either work together and live together
or they will die together Free enter
prise and free government will survive.
or, in the destruction of one, both will
be destroyed
I'VE need no wild alarmist, no IA
natic prophet Of disaster, to rouse us
to an understanding that We live in
perilous era OF transition. Nor is 1t
helpful for anyone to try to persuade
us that radical theories or radical
parties are making over the world OF
yesterday.
What we need is to look squarely
at the fact that nation after nation
Is going through the terrifying birth
pains of new political economy. Some
people want to hurry the process: some
want to ease the suffering; some just
want to complain about it; but no
one can stop it.
Facts Must Be Faced.
1--WE must face the fact that indus
trial and political Transformation go
hand in hand. We must face the fact
that science. invention, and education,
have been Transforming the needs and
desires of hundreds of millions of hu-
man beings. In greater numbers and
with greater powers than ever before
these millions are struggling for q
place In the sun. Here are the under
lying causes of worldwide unrest and
conflict"
Mr.. Richberg lays down a program
FOR dealing with monopolistic and un-
fair practices which is great i'm
provement on the present system that
tells nobody the rules and then prose-
cltes criminally those who try to fol-
low governmental advice. He suggests
that an administrative body. presum-
ably the Federal Trade Commission.
should be empowered to pass on the
prima-facie legality Of cooperative
activities (through trade associations
or special agreements) SO that busi-
ness organizations can undertake a
great many programs absolutely neces-
sary to protect and promote business
and employment, without being SUBJ
1ect to undeserved prosecutions and
penalties"
But the larger problem-how to en-
courage capital investment and create
5obs-is one that is still vague In the
public mind. Business men say to
Government: Revise tax laws. pre-
scribe the rules, stop competing with
private industry, please quit stirring
up class feeling and class antagonisms
In America
Adds to the Confusion.
Communicating the Presi-
dent, because Congress is almost hope
lessly unaware of its responsibilities
answers back, to reduce costs and
reduce prices but don't reduce wages.
Pay more for freight rates-because
the railroads need it. Pay more for
farm products because the farmers
need 1t and the Government will help
peg the prices at a higher level than
would be the case If the Government
subsidy were withdrawn. Pay more
Tor taxes but don't pass the costs on
to the consumer. And last but not
least. don't lay of men, but keep on
paying money out Of surpluses."
This sort Of contradictory advice
only adds to the confusion Of those
who are trying to operate the profit
systent-though Mr.. Roosevelt would
have been more accurate II he had
termed 1t the profit and loss system"
It y easy enough to tell business man
who have the responsibility Of meet
ing pay rolls what to do, but It IA
eomething else to teach them how to
do It without getting into receiversaip
o. bankruptcy. Everybody In Gov
Hnment seemingly Is giving advice
70 business. but nobody apparently
wants to listen to the advice the b,,si-
ness men offer. One reason Is that
the Government through the POLITICAL
minded and the demagogues has done
its utmost for tive years to discredit
business. The left-wingers have de-
Iberately fostered the idea 50 that
socialism may be introduced. The