Evening star., 1938-05-15

men.
That slump was not permanent, how
ever. In 1884 the industrial index did not
rise above Sc, but in 1885 it began to come
back, reaching high of 101 in December
OF that year. A year later the figure stood
at l2l and it remained above the 100
mark in 1887 until October. when it fell
off precipitously. In April of this year
1t was down to approximately IS.
Questionable Reforms.
The Republicans attribute the rise in
1896 and 1887 to the invalidation by the
Supreme Court of several New Deal laws
highly debatable proposition-and the
temporary influence Of Government deficit
spending on stupendous scale. The latter
contention may or may not be sound, but
no one can deny that the business recess
sion and the curtailment in Government
outlays came almost simultaneously A
glance at the spending figures, however,
tends to support the minoritys contention
that pump priming cannot bring about
lasting prosperity, especially if accom-
panied by questionable reform legisla-
ton.
The records show that during the period
from March 4, 1888. to April 30, 1898,
the Federal Government spent $685.
9l5,693. That. according to the minority
report. is approximately 40 per cent of
the total expenditures of the Federal Gov
ernment from the first day of George
Washington's administration to July l.,
1888. In other words, the cost of govern
ment during five years of the New Deal
has been 40 per cent Of the entire cost
Of national government during the 144-
year period preceding it.
That is an appalling outlay of money,
and if the philosophy underlying its ex-
penditure is sound it should have brought
substantial and permanent benefits. But
that is not the case. Just as the recovery
that followed Mr.. Roosevelts election
vanished in the slump of 1888 and 1884,
SO has the recovery of 1886 and 1887
vanished during the last seven months.
Only Temporary Help Seen.
After the expenditure of almost $40 0,0O0,-
100000, the industrial production for April
of this year is estimated by the Federal
Reserve Board at IS per cent of the 1929
Is average. That is % points below the
level reached in July. 1888. and only 10
points above the level of July, 1882, when
the depression touched bottom.
With the above figures as a basis, the
Republican minority. composed of Repre-
sentatives Bacon, Taber and Wigglesworth,
reported:
Thus. despite the forty billion dollar
expenditures of the last five years, we find
this country back in the throes of a severe
depression. And this has happened
after five years of efforts directed toward
a planned or managed economy under
the direction of the Federal Government
We planned it that way has been the
keynote of the present administration. The
responsibility for the Roosevelt depression
is clearly on the New Dealers.
Government spending will perhaps
bring about slight temporary improve
ment in economic activity. But we en-
phatically assert that unless constructive
steps are taken along other lines, it is
impossible to achieve permanent lasting
recovery"
Steps Urged by Minority.
The constructive steps" proposed by
the minority can be summarized as fol-
lows:
Reform in relief administration and
abandonment of P. w. A. appropriations,
outright repeal Of the undistributed profits
tax and revision Of the Federal tax struc.
ture to eliminate inequities, elimination
OF taX-exempt securities, immediate re-
duction of "burdensome and unnecessary"
social security taxes, elimination of l1arass-
Ing restrictions and Government as
saults on business, restriction OF Govern
ment competition with private enterprise,
revision of the National Labor Relations
Act, repeal Of the Thomas greenback law
and the taking of immediate steps to
eliminate waste and extravaganza in the
Federal Government with q view to re-
ducing expenditures and bringing about
balanced budget as soon as possible.
To this proposal the Democratic spokes-
men reply that spending pulled the country
out OF the last depression and can do
the same thing again. They argue that
the billions poured into pump printing
not only preserved the capitalist struc-
ture when it was shaken to its founda-
tions, but has resulted in many WORTH
while and permanent public improvements
and has made possible the introduction
OF far-reaching social reforms.
There is little point now in attacking
the present spending bill, for its passage
by the Senate is virtually assured. Perhaps
it will bring real recovery, and if it
does, that will be the end of the Re-
publican opposition. But it is more likely
it will fail, as did the other pump printing
enndeavors, and, should that be the case,
Congress and the country would do well
to give the minority program a fair trial
before resorting again to the type of
fiscal policy which President Roosevelt
in 1893 said had started the Nation
on "the road to bankruptcy"
AMMAN Ruler Has Passion
D. IT,