Evening star., 1938-03-01
A Friendly Warning.

rive years ago PRESIDENT Roosevelt, in
his hrst inaugural address. cheered q
dispirited and depression ridden Nation
with the firm assurance that "all We
have to fear is fear ITSELF" and, as
though he spoke with the tongue Of a
prophet, there emerged from the chaotic
period that followed substantial meas
ure OF recovery. Now, however, the
country is again in the grip Of depres-
sion and once again it is fear that seems
to be blocking recovery.
In 1888 the magnetic words Of the
President proved a potent factor in
breaking down the psychology of fear,
but in 1888 something more than words
is needed, for the present apprehensions
on the part of business are of the
Presidents own making. That, at least,
Is the gist Of the indictment of the New
Zeal that has been drawn by Bernard
Baruch. close personal friend of Mr..
Roosevelt and often his consultant on
economic questions.
When the New York financier regret.
fully told Senate committee that in
his opinion unemployment is now trace
able more directly to Government policy
than anything business could or should
do he voiced sentiment that has
won additional converts with each pass
ing day. Coming from Mr. Baruclr, how
ever, such a charge will leave the New
Deals apologists hard put for a reply, as
they cannot dispose of his remarks
by tagging him as an economic royalist
willing to sacrifice his own interests to
sabotage the administration. In sober
fact, no rational person can view his
testimony in any other light than that
Of friendly criticism given reluctantly in
the hope OF checking a trend in gov
ernmental policy that may seriously
menace the economic system in this
country.
Mr.. Baruch, in listing specific evils,
mentioned the undistributed profits and
capital gains taxes and the present So
c1al security tax, but he struck deeper
note when he predicted the release of
forces that would rapidly hasten recov-
cry and Unemployment IF it became
clear tomorrow that America has def
nitely chosen her traditional profit sys-
tem.' There is no evidence that the
President or his responsible aides have
consciously embarked upon a program
OF destroying the profit system. But
there is abundant evidence that the
profit system is being seriously impaired,
and 1t makes little difference to the
business man whether his chance of
profit is eliminated wilfully by the Gov
ernment or inadvertently through the
imposition of confiscatory taxes and
the enactment of ill-considered regula-
tory legislation which stifies successful
industrial expansion.
Underlying most of the major policies
enunciated by the administration in re-
cent months has been a singular con-
fusion OF purpose which leads to the
suspicion that the New Deal strategists
do not know where they are going or
how they expect to get there. Mr..
Baruch, no doubt, had this confusion of
policy In mind when he said I'VE have
attempted too much too hastily" Clear
~, he implies that the time has come
Tor the administration to pause and
consolidate its gains before embarking
on new ventures.
There is imperative need that the
President give heed now to MIR. Baruch's
advice IN the spirit in which it was
given. Otherwise, he may see the day
when there will be more to fear than
fear itself.