Evening star., 1938-05-14

04lo OBJ lSulbdlol
org a n izations," 0 A""ie"'''
said Mr.. Eccles. "as well as govern
ment. have grave social responsible
ties. The responsibility of government
Is recognized by every one, but, by and
large, do not believe that the respon-
sibilities to the public of privately
organized groups have been either
recognized or discharged have
heard much about cooperation I
have yet to hear of any organized
group of industry or labor proposing
to make serious study as to how their
policies and practices may contribute
to economic balance. That apparently
Is regarded as the exclusive RESPONSE
bility of government, and yet, to
complete the picture, the efforts of
government to discharge that respon-
sibility are all too frequently con-
demned and resisted"
Mr. Eccles comedies in his speech
many of the points Of criticism made
by business, including, for example, his
personally expressed belief that Gov
ernment funds should not be loaned
to build up competition with private
industry and his suggestion that in
creased wage costs imposed on the
railroads in 1887 be suspended for
Q while.
Call for Leadership.
But the most important point Of all
Is his challenge to business to furnish
an intelligent and aggressive economic
leadership. This is a cry often heard,
but rarely has it been phrased so well
as by the present governor of the Fed
eral Reserve Board. Coming as he
does from the ranks of the bankers
and seeing government from the in
side these last four years under the
New Deal, he is in a position to see
the shortcomings of both government
and business. When he says, there
fore, business and labor have not
come forth with economic studies on
current problems of major concern, he
Is absolutely right. Thus last autumn
this correspondent called attention to
the fact that even so fine group of
labor leaders as the chiefs Of the rail-
road brotherhoods ignored the eco
nomic trend of the railroad business
and insisted on wage increase at
time when the railroads could not
economically justify the same. It
seems likely that these labor leaders
would have been supported by the rank
and file of the railroad employees, who
are among the most intelligent in the
country, had an economic study been
undertaken and the wage increases
withheld.
Likewise business was asleep at the
switch when the social security taxes
were imposed by law. No studies were
made to show the economic conse-
quences Of the pay roll taxes, nor was
any particular pressure exerted by
business men to get enacted an alter
native plan. Most of the criticism
came after the law was passed and
put into operation.
Dodge Constructive Policy.
The so-called business organizations
today are made up of various groups
and interests and usually resolutions
that are adopted represent compro-
misses between conflicting viewpoints,
usually based on a dollar-and-c
interest to themselves. An objective
policy based on the broad national
interest rarely comes out of busi-
ness or labor organization and it is
precisely this which Mr.. Eccles insists
is a responsibility resting on all pri-
vate organizations. To large extent,
he might have added, Government
initiative Is due to passive attitudes
on the part Of private groups. What
Is meant by passive attitudes? The
answer Is, negative cricitism which
tears down and picks flaws but does
not offer any alternatives. This, of
course, is not as true today as it was
three years ago. More and more buSi-
ness men are openly making construc-
tive suggestions; but it would have
been fine thing If the Chamber of
Commerce Of the United States and
the National Association of Manufac-
turerS and the American Federation Of
Labor and the farm organizations
WAN AAo'S PAOPOcCo CAAo yCdI SPCtlllC
amendments to existing laws-and
amendments, too. that would have
represented an adjustment of view as
between capital and labor and the in
dustrial and agricultural regions of
the country.
The first step toward such q goal is
the setting up of machinery for con-
temporaneous study Of national eco
nomic problems and for conference be-
tween interested groups. Too much
time is spent in writing resolutions
of condemnation, and too little in
digging up the facts which alone can
tell the story of whether an economic
policy Is wise or unwise. If Mr.. Eccles'
suggestion is taken seriously by private
groups he may have started some
thing Of prime importance in meeting
the paramount task of the day, the
organization Of democracy itself in the
face Of economic pressure and growing
, populations.
Copyright. 193sJ
Cadet Awarded Gold Medal.
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