Milford chronicle., 1938-02-04

80 N1%A@19 AA8Gb6AAC AENCAAtA
said, 1T was to Washington tina
business looked this week for clue
to what's ahead" That has beei
largely true ever since 1929. It /
probably more true today than i
ever was before. Politics has becom,
the dominating factor in the bust
ness outlook.
Number one late Washington oc.
currence was the Presidents state
ment, made at a press conference, tc
the effect that he wishes the ulti-
mate destruction of all holding COM
panies. He specifically mentioned
banking holding companies, but did
not further elaborate his views. The
Public Utility Act of 19S5-whose
constitutionality will be finally de-
cided by the Supreme Court this
term-demonstrated the Adminis-
trotion's policy of eliminating held
ing companies in the public utility
field, but up to now no one believed
the President was looking into other
fields. His statement was greeted
with both wonder and amazement in
financial circles, which pointed out
that about half of all the widely
held listed securities represent con-
Germs which are wholly or partly
holding companies by nature, and
said that it would be impossible 10
accurately gauge the effect Of n
wholesale anti-holding company poll
icy until Mr.. Roosevelt clarifies and
explains his views and purposes.
The holding company declaration,
coming on top of the recently inau-
gurated anti-monopoly movement,
further illustrates the widening
breech between an Administration
which is still clInging to its original
more or less revolutionary objec-
tives, and a Congress which scents
to be daily turning more conserva-
tive and dubious of White House
policies. 1t likewise further empha-
sizes the tremendous cleavage OF
opinion that exists between the Ad-
ministration and American busi-
ness-at-large.
Less headlined, but of unusual in
terest, was an investigation" on the
subject of employment which a Sen
ate committee recently held. AS
Time says, ITO the public generally
a Senate investigation means a scan
day hunt" This one was very diff
erent-the committee honestly want
ed information, and the questions
asked were generally designed to
achieve just that, not to smear the
questionee.
One witness was Federal Reserve
Chairman Eccles, representative OF
right-wing Administration opinion.
Mr.. Eccles, who has long advocated
immediate budget balancing, attri-
buted the business slump to the SOL
diers' bonus payment, which accen-
tuated inflationary sentiment, and 10
strikes, increased operating costs
for the railroads, lack Of expansion
by utilities and the governments ef-
fort to areduee its-RGaRtripuuen 10
consumer spending power. He salu
it was necessary to reduce "monpo-
listically controlled prices and wages
which are now too high"
Another witness was General Mo-
tors William Knudson, who describe
ed the dilemma in the automotive IN
dustry. the amazingly fast drop IN
new and used car buying, spoke Of
fear psychology" as factor in pro
ducing bad times, and attributed thls
in part to governments attitude to-
ward business. A similar opinion
was expressed by Robert. Wood,
Sears Roebuek president, who SAID
that business lacks confidence ana
is scared" and observed that the
businessman has been clubbed ov-
err the head many times" Mr.. Wood
also said that a number OF speclhc
factors led to the current slump, IN
Guiding: Overproduction in the
spring of 1886; sterilization of gold; !
increased Federal Reserve require
ments, and the fact that private
spending did not take up the slack
when the government began slowing
down some of its emergency activl-
ties.
All of these witnesses likewise
agreed that abnormally large inven-
tories had contributed to the unpre-
cedented sharpness of the decline
last fall and early winter. The in
ventory situation is gradually being
corrected now, and In some indus
tries. recent figures Indicate that jn-
ventories are excessively low--one
of the main facts on which the many
economists who look for an upturn
this spring or summer put their
hopes.
So the debate goes on. In tie
the actual business in
lices have not changed much late
y, with improvement in some lines
,fiset by further declines in others.
oOo
Dean Carl AckerInan Of Columbia
University, has made an exception
lily interesting map, showing hcw
of the press has spread
the world.
In practically all Of the Far East,
reedom of the press is unknown
he U. S. S. r. China. Japan, Tur-
icy, Arabia, Egypt, and other eoun-
Ties rigidly control their perioui-
ais, and in India, Belgian, Congo
md French West Africa. there is
ome measure of government con-
rol.
In Europe truly free press is
'njoyed only by the inhabitants of
France, Sweden, Norway
md Finland.
On this continent, the press is
I npletely free in the United States,
Jexico, Canada Except for the pro-
'ince of Quebec) ana part Of South |