Evening star., 1938-04-13
Taking Stock
Government Can End Its Depression by First
Diagnosing the Ailment.

maintain them more loudly and more
stubbornly.
At the same time the administra-
tion's viewpoint was expressed in the
press conferences, which, with their
confusing offhand statements, con-
tributed greatly to the general uncer-
tainty while a barrage of admins
tration measures, such as the wages
and hours bill and the reorganization
bill, introduced into the regular ses-
sion of Congress. which had convened
early in January further disconcert-
ed business by making it wonder what
it would have to confront in the i'm
mediate future.
No Diagnosis.
Some things were done meanwhile.
The Federal Reserve and the Treas
ury reserved their deflationary policy,
which had actually started the de-
preston, and Congress, with obstruc-
ton rather than aid from the admin
ktration, modified the taxation policy.
But never in this entire seven
months has there been a serious at
tempt in Washington to diagnose and
deal with the fundamental illness of
the economic organism.
And now the fourth attitude is
clear. Still without giving evidence
that it has made any accurate dag
nosis the administration is reverting
to its 1888 program of spending.
Now. increase of spending is abso-
lutely unavoidable. In the first place,
there are relief needs which will have
to be met, There are political and
social factors which must be taken
into account. A nation with $4,000
100000 in gold and with every con-
ceivable national resource cannot toll
crate 100000 unemployed unable to
live or earn living.
But it is imperative to bear in mind,
taking the example of France. that
very rich country can be bankrupt,
and that Government spending of
itself will not reverse the kind of
depression We now have. The pointless
dissipation of public funds will not do
the trick.
We're Spending Now.
First of all, it is absurd to talk
about whether We are going to spend.
We are already spending at rate cor
responding to the highest level
through the whole New Deal period,
except during the distribution of the
bonus, In the month of March ex-
penditures made on behalf of main
tanning consumption corresponded to
the high levels of late 1885 and 1886.
II Congress wants to pull this coun-
try out Of the depression-and if it
does not We may as we'll kiss the
American social. economic and politi-
cal system good by-it will have to
plan large scale program of re-
Mobilization based upon complete
diagnosis of the disease
And the first thing it. needs is ex-
pert and independent opinion. not
in the form of inhibited individuals
journeying to Canossa. but by. per-
haps, a joint committee Of Congress
with independent experts attached
to it.
There is a remarkable unanimity
Of opinion among the students of the
situation as to what is really needed.
Urgent is the rehabilitation of the
railroads, a problem which has nov
been thrown into the lap of Congress
after nine months of failure to deal
with it.
Urgent is it that a settlement be
reached and reached quickly in the
utilities question.
It is urgent that some new great
horizontal expansion is given impetus
through the quick stimulation of
private initiative In such a field as
housing.
And it is urgent that whatever
spending is done should not be done
in such fashion as to supplant
rather than to supplement private
initiative. to extend an already too
great vested interest in Government
largesse. and to add fresh uncertain
ties to the whole situation.
Copyright, 1888, New York Tribune. Inc