Evening star., 1938-12-27
The Political Mill
Something Besides Pump -Prmine' Is Needed
To Achieve Recovery, Is View

be impossible to shut of the flow
OF Federal millions at once without
seriously affecting the country. On
the other hand, it is certainly pos
sible that the Government should
begin a program of retrenchment
IN the hope that one day the budget
may be balanced again.
After half dozen years of spend
Ing and more spending by the Gov-
ernment without achieving recovery
and without reducing the millions
OF unemployed, except temporarily,
1t should have become plain that
pump priming" is not enough. The
large amount Of money on deposit
in the banks and the large amount
Of money in the hands of the people
are not enough. Even the low rates
Of interest which the Federal Gov
ernment is paying for its loans, of
which Mr.. Eccles boasts, is not
enough. What is needed is to have
private business and industry put
all these dollars to work-which
means also the restoration of con-
fldence both to business and to the
investing public.
Business is a tough game, any,
way. Why make the game harder
is the question that businessmen ask
constantly. 1t may be that the New
Deal administration has had a
change of heart. 1t may be that
the appointment of Mr.. Hopkins
to head the department which deals
primarily with business is really in
tended to help business-and not to
bolster Mr.. Hopkins as q presi-
Dental candidate in 1910, as has
been charged In a number of quar-
tiers. The recommendation of the
President to Congress when 1t meets
may give some clue to the answer
to these questions.
Three Democrats Opposed.
1t is growing increasingly clear,
however, that Congress will have to
give attention to the Government
spending question. Already three
Democratic Senators, including
Senator Byrd, have sounded an
economy note. The other two were
Senator Pat Harrison OF. Mississippi,
who heads the committee which
has to do with taxing the people,
and Senator Byrnes of South Caro-
lima, an important member of the
Appropriations Committee. which
handles the spending bills. Mr..
Eccles has taken occasion to speak
now for the administration in de-
fense Of spending and more spend
ing.
In the prosperous days Of 1926
1929-at least they seem to have
been prosperous and to have given
more employment to more men and
women-there was less money on
deposit in the banks than in 1898,
less money was in circulation, and
interest rates were higher than in
1898. Yet during 1898 the Govern
ment spending program was greater
than ever. It seems that something
beyond mere Government spending
is required if the national income
is to be brought back to the figures
Of the 1926-1929 period, If private
business is to give employment to
the millions Of persons who are
either today working for w. P. A.
or have no jobs.
The President and Mr.. Hopkins,
in Christmas messages, have both
urged cooperation among all groups
of Americans to bring about greater
recovery and prosperity for all the
people. Mr.. Eccles has urged in
his letter to Senator Byrd that
name calling be abandoned and
that business join with the ad-
ministration in working out bet
ter economic situation for the
country.
A great deal could be accom-
plished if capital and labor and
Government all turned a hand. A
great deal could be accomplished if
the billions of dollars available for
private enterprise were put to work
producing. 1t Is only through pro-
duction that wealth can come to
any people. Demands for higher
prices when demand for goods in
creases, on the one hand, and de-
mand by labor for increased pay
on the other have too often halted
production and more wealth for
all the people.
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