Evening star., 1938-02-20
Observer Fears a Crisis May
Again Be Near at Hand
With Confidence Regarded Destroyed, Three
Courses Are Declared Faced in Competitive
or Monopolistic Capitalism or Initiation

might get America back on the track
toward normal.
Or the beginning to confidence might
come from the people. Some event, some
development or other, some plain mani
festation of public opinion might show
that the country as whole is stable; that
it has come not to share Mr. Roosevelt,s
pleasure in the novel and exciting; that
it will not necessarily follow him in every
experiment or adventure that appeals to
him. Such sign from the people might
get the country back on the rails.
Monopoiistic Capitalism.
The second possibility is monopolistic
capitalism. That is, in effect, what Mr..
Donald Richberg proposes Let business
suppress competition. Let businesses COM
bine. Let them form monopolies or agree
upon monopolistic practices-all under
Government supervision, with Government
sitting in as a partner, as Mr. Roosevelt
sometimes puts it.
For the course Of monopolistic capitalism
Mr.. Roosevelt has shown some liking. He
shows some intellectual liking for regu-
lated monopoly as an economic and social
theory, and he is further apt to turn toward
that path for temperamental reason.
Regulated monopoly means more power for
the President, and power Mr.. Roosevelt
likes. Much of big business likes regulated
monopoly. They would help Mr.. Roose-
welt toward it; they did help him toward
it when he attempted it in the form OF
N r. A.
The path toward monopolistic capitalism
Is quite possible. 1t would lead fairly di-
rectly to something far beyond monopolistic
capitalism 1t would shortly become state
capitalism, and soon after that State So
cialism. Big business does not foresee that
stage, and cannot be relied upon to help
avert it. Little business will fight against
monopolistic capitalism and can be better
relied upon to keep America in its tradi-
tional course.
third possible course is imitation, Il
use the term as meaning, roughly and
mainly. higher prices. and as being brought
about mainly by Government spending)
Imitation, heavy Government spending, is in
some respects the most likely of the
courses. Imitation is the one course on
which both President and Congress might
unite. Congress might decline to follow
the President in any Of many experiments,
yet might fall in behind him on q program
of large spending. Just because Congress
would be likely to follow him is one reason
Mr.. Roosevelt may take this course. He
would like to rebuild the spectacle of
Congress doing what he asks, and to achieve
that the best thing for him to ask of Con.
gress is heavy spending.
Mr.. Roosevelt would not, upon delibera.
ton, take the path that leads to imitation.
Critics may say what they will about Mr.
Roosevelt's economic understanding or the
lack of it, and about his sense of grave
responsibility or the lack of it; and some
Of what the critics say is justified But
Mr.. Roosevelt does grasp the horror of
violent imitation; he has, in many ways,
shown the wish to avert it. But imitation
is, politically, the easiest way
Signs Declared Confusing.
In considering the possibility of imitation
and in rejecting upon all the possible
courses that might be ahead it Is not easy
to be dogmatic The signs are confusing,
extremely so. Some point one way, some
another. The signs as . whole do not
make any pattern.
We have just seen one Of the largest
industries -steel-begin to cut prices. That
points toward competitive capitalsm-in-
deed. it is step toward greater competitive
capitalism than we have had even during
normal times preceding the depression.
Further, the cutting Of steel prices points
toward regime of lower prices generally.
And lower prices (omitting some fields in
which lower prices are not called for) is
the path toward wholesome conditions,
economically, socially, politically.
At the same time we have just seen
Congress enact a measure, the crop control
bill, Of which leading purpose is to keep
prices Of farm products higher than they
would otherwise be. to make the cost Of
living relatively high. True, the farmer
for many years has not had an equitable
share Of the national income. True, it may
be too much to ask of the farmer that he
should wait until the roll Of the economic
wheel. the operation of natural forces
would give him his turn at the top Of the
economic heap. But admitting that, high
cost Of living, restricted food supply, is .
step away from competitive capitalism, q
step in the direction Of monopolistic
capitalism.
Wages and Labor Problem.
About wages Of labor, the conditions are
uneven. Keeping the cost Of living high
must have the effect Of causing and justify
ing high wages for labor. Wages in many
lines are not high now. some are inequit-
ably low. But some other wage rates are
impossibly high. Excessively high wage
rates are the chief reason for failure to
build more houses-and resumption of
building construction on a large scale Is
the principal one need for resumption of
business prosperity on q universal scale.
About the most encouraging thing that
could happen. the most wholesome for the
country and for the individuals directly
concerned, would be that labor In the
building trades should see the light, which
Is at once reason and self -interest-see
that 1t Is better to be at work ct Iow9
rate than to be idle ut high wase rate.