The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1938-03-03


coming so fast
Chdnges lately that about
Come Fast all am able to do
this week is to re-
view the situation. I have gath
cred information and advice from
many official sources in an earnest
effort to understand what is happen
ing, but with all of that / am quite
incapable of what ! would regard
as complete analysis. AS the air
pilot would report while flying
through fog: the visibility is zero.
The proper basis for start,
therefore, appears to be with recol-
lection that one of the cardinal poll
cies of the Roosevelt administration
was control of agricultural produc-
ton to accomplish higher prices.
Another basic plank is the foreign
trade policies under which recipro-
cal trade treaties have been negoti-
ated with numerous foreign nations.
These two planks were designed to
make markets available for what
we produce, first, through scarcity
OF quantity and, secondly, to stabi-
LIE the world exchange of goods on
price levels which we, in this coun-
try, considered to be worth while.
Various other legislative acts and
White House announcements came
into the picture also, but we need
not be concerned with them just
now.
Well, the higher prices began to
materialize. They came along to
the point where eight or ten months
ago there was genuine evidence of
speculative boom. Mr.. Roosevelt
said recently in statement to the
press that the outlook on this cir
cumstance was a bit alarming. Sud-
denly, however, the depression set
tied down on the country. The Pres
ident took note of it after time and
announced that prices had to come
down in order to encourage buying
by the consumers. That was in
January of this year. Early in Feb
ruary, he told the press that there
had to be higher prices to bring
the country out of the depression.
Subsequently, was ON February
18, I believe, he took another posi-
ton on the price question. He said
in a formal statement:
at is clear that in the present
situation, a moderate rise in the
present price level is desirable and
that this rise need not and should
not extend to all prices"
So that now we are committed to
price rise on some commodities
and present or even lower prices
on some other commodities. It is
to be presumed because there is
nothing to show a contrary view
that all of the machinery of govern
ment is to be used to bring about
price rises in "some commodities"
but not all Of them.
However, th continue our review:
I reported to you in December, 1887,
and have mentioned several times
since that there is a trust busting
drive on that is as big and as broad
as the famous "big stick" which
Theodore Roosevelt used when he
was President. Twenty-nine cases
against so-called monopolies are
pending now in federal courts and
the federal trade commission has
some others in process of prosecu-
ton. The prosecutions range all the
way from ladies' half-size dresses
and against individuals who design
styles through the list to Aluminium
Company of America.
Now, while the trust drive has
been on (and some folks have been
cruel enough to charge that the
trust busting drive is to keep the
folks from realizing we are in de-
pression), another thing has hap
pened. I refer to the passage of
the new farm aid legislation. I have
not been able to understand the
law, but Secretary Wallace calls it
one of Gods blessings to the farm
ers because he says that it will re-
duce or limit production and there
by force a greater return to the
farmers. In Mr.. Roosevelt's state
ment on the general price situation,
however, he spoke of the new pro-
gram as follows:
"Our program seeks a balanced
system of prices such as will pro-
mote balanced expansion in produc-
ton. =. This is not a policy of
restriction; it is a policy of abun-
dance"
I seem to recall some phrases of
a few years back which described
the plans as leading, first, to higher
prices for agricultural products
through Scarcity; then, there
came "the more abundant life" and
later balanced abundance. I as
sumo the balanced expansion"
must represent something taken in
between the other policies, but I
frankly do not understand. That is
the reason why I have attempted
this report to you by way of a re-
view.
Although admitting that much Of
the new program is too deep for me
to analyze, there
lrdde are certain phases
Treaties of it which have
been operative
and from which results have be-
gun to show. Take the reciprocal
trade treaties as an example. I
came across some figures down at
the Department of Commerce the
other day and they were something
of a revelation. They showed that
in 1887 this nation of ours was i'm
- WALL GIL y