Evening star., 1938-10-13
WALLACE CLAIMS
NEWDEAL THRIFTY
Tells Democratic Women
G. O.P. Hid indebtedness
Piled Up Locally.

The Republican party built up pros
perity in the decade from 1920 to 1880
On money borrowed against the future
and Democrats are now paying for
that prosperity, Secretary of Agricul-
ture Wallace contended last night in
an address before the Woman's Ma
Eonal Democratic Club.
Speaking on his assigned subject,
Thrifty Democrats" the cabinet OFF,
Ger presented arguments designed to
refute Republican charges that the
New Deal administration is spend
thrift administration.
Beginning with 1920 the Repub-
licans committed three very great
errors" said the Secretary namely,
their handling of money, increase in
the Indebtedness of foreign countries
to the United States and failure to
take cognizance of the problems Of
agriculture.
THE Democrats are niggardly COM
pared to the Republicans in the '20s.
They cut down the public debt about
100000 100000 during that 10-year
period I920-30) and increased local
Indebtedness by SO billions. Mean
while bankers were becoming worried.
Business had what it wanted in Wash
ington. While the Republicans were
increasing the public debt, no one had
any idea their policies were increasing
private debt so greatly.
Sees Debt Shifted.
TN the '30s the Democrats had in
creased the public debt by 20 or 80
billions. but about six billions came
from the previous Republican admin
istration in 1930-31-2. Meanwhile
there was no increase in the private
debt. In fact the decrease up to 1894
was about "a billions. There has been
some increase in the private debt since
then. However, We haven't had that
increase in debt necessary to prevent
unemployment under the capitaliStic
system" Mr. Wallace continued.
The debt condition of the United
States is sounder now than at any
time since the early '2O's. The Demo-
cratic policy has been to spend enough
to avoid revolution and starvation and
to hold the door open for private cap
ital when its fright is over and it is
ready to observe the rules of decency
about which it was so indiscreet in
the '20's. After nine years, it would
seem time for private capital to come
out again"
The secretary described the Repub-
lican party as mentally and morally
bankrupt" and exceedingly dull"
Pictures Farm Problem.
Turning to the farm problem, he de-
clared this administration hasn't
had to face the problem as it really
existed except in the last two years.
1t was concealed in the '20's by for
eign loans and in 1884 and 1885 by the
drought. The problem has caused us
to want to set up an ever normal gran
ary, and now is the ideal time to set
one up with large crops, thus giving
insurance against a short crop and
worldwide conditions. The Republi-
cans accuse us of scarcity and inabil-
ity to control production in the same
breath
This is not scarcity program" Mr..
Wallace said emphatically. THE ever
normal granary will level off noun
tains OF surplus into valleys OF scar
city"
AS for the present agitation existing
among farmers, he contended they
were stirred up by politicians and
business men" and concluded with an
expression of optimism for the Nations
economy at large and a prediction OF
unity among Democrats for the general
election.
Secretary Wallace. who spoke in
formally and without the benefit of a
prepared text, was introduced by Mrs.
J. Brent Clarke, first yice-president
Of the club.