The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1938-03-17

sion seriously. Inc nOncnalanL aC-
titude of high Administration OFF,
dials, who would not admit that
there was anything to it but tenn
porary slump, has given place to
a considerable degree of anxiety as
to how much longer it will be be-
fore the tide turns, and what will
be the effect upon the voters if un-
favorable business conditions cons
tinue much farther into an election
year.
Outside advisers who have been.
called into consultation with the
President and Cabinet members
forecast six months more of bad
business with recovery setting in
about the time of the November
elections and the business affairs Of
the Nation running at top speed by
January. This point of view is not
pleasing, naturally, to those who
fear the political effects Of long
drawn-out spell of hard times, and
who hold that it is not only the
Governments function to set eco
nomic conditions right by some sort
of political magic, but that it is pos
gible for Government to do that.
Spend-Or Not to Spend?
The result of the situation is that
there is again a bitter controversy
inside of Administration circles be-
tween the out-and-out New Deal
ers and the more conservative adj
visers close to the President. The
"save-the-nation" boys are urging
Mr.. Roosevelt to try the free-spend-
ing remedies which have been used
in the past, while the other group is
urging him to keep his hands off
and let the situation work itself out
with whatever aid and comfort
Congress may decide to give to bus
mess.
"Wait three months" is the oft
repeated slogan of this group. Harry
Hopkins, relief administrator, has
been persuaded to wait three
months before renewing his de-
mands for a huge w. P. A. pro-
gram, in the hope that in that that
period the Federal Housing Admin
istration will have got the long-her-
aided building boom so well under
way that its effect on business re-
covery and employment will be no
ticeable.
No Building Boom Till
That this will be the case is not
generally considered to be that any
real "boom" in building will have
to wait upon the sterilization of
general business to the point where
people of small incomes will feel
enough confidence in their economic
futures to venture upon the pur-
chace of new homes.
The indications are that the Pres
ident is listening to the advice of
those who hold that the main OBJ
stacle to recovery is in certain acts
of the Federal Government, and
that if he would abstain from max
ing public statements which sound
inimical to business, and let Con-
gress go ahead and modify the tax
system so that business could look
forward to reasonable profits, the
processes of recovery would be i'm
mediately speeded up.
That is the point of view .ex-
pressed at a Congressional hearing
by Bernard M. Baruch, whose de-
votion to the Democratic party and
personal loyalty to the two recent
Democratic presidents, Wilson and
Roosevelt, is not questioned by any
body, in spite of the fact that he is
a man of great wealth, most of
which he has made in the stock
market.
Urges Tax Modification
The former head of President
Wilson's War Trade Board, and the
trusted confidential adviser of Pres
ident Roosevelt, urged upon Con-
gress the necessity for the repeal or
modification of the Undistributed
Profits and Capital Gains taxes.
And that is exactly what Congress
is preparing to do.
The new tax bill which is before
the House for consideration doubt
less will be modified considerably
before it is enacted into law. There
is a strong element in the Senate
which would go a great deal farther
in relieving business and industry
of tax burden which is held to
be a main factor in bringing about
the present depression. But the
House bill as drafted goes a long
way in that direction. It is the
product of immense amount of
study on the part of the Ways and
Means Committee, and the advice
of probably a larger number of
outside experts than have ever been
called in consultation.