Evening star., 1938-07-17


Jugend.
While it may provide grist for the anti
New Deal mill, the hard-boiled indi-
vidualist. along with Z large number OF
less reactionary readers, will be glad to
note In the authors conclusion that
1T is common saying that America
was founded on the basis of freedom Of
economic enterprise-along with religious
toleration and political democracy-and
that the preservation of this free enter
prise is the American way This view.
we believe. rests on sound economic
ground"
Having read this paragraph with salts.
faction the next one should be absorbed
as well:
With the growth of the complex in
dustrial system, there is less of individual
enterprise and more concentration in the
hands of corporate officials, II they are
to be safe custodians of our national pros
perity under a system which gives them
large freedom In developing these great en-
terprises, they must accept the response
bility of so conducting the system that the
u
OF self-employment shall still have access
to jobs through which they may meet their
needs up to a maximum made possible 10y
our rich resources and advancing TECH
niques. sound pricing system, as We have
said all along, is the one which develops
capacity operation, and this implies en-
ployment Of the Nations full labor force"
What Is It's Significance?
So much for flavor OF the latest Brook
ings contribution.
What is its significance? That, of course,
cannot be forecast as yet. But If, as its
response indicates, this book is to attract
as much or more attention than some of
those which preceded it from the same
source it may have very practical effect.
The study of the French war debts, per-
haps the most violently attacked when it
appeared, estimated our debtors capacity
to pay far below what Mr.. Hoover thought
we ought to collect In fact the then Sec
retary of Commerce was so outraged at its
author that he declared DR.. Harold G.
Moulton was 10-million-dollar-
liability to America, that being the amount
by which the American demands for pay
ment were scaled down as a result, presum-
ably, of Mr. Moultons assembled facts and
figures.
There are many other examples of Brook
ings studies which have had their effect
on the course of government. One that
can hardly be omitted was the income study,
which urged low prices as q necessary
factor in recovery. Whether or not it vas
a matter Of cause and effect, some months
later the President, who had been urging
high prices before, indicated q change Of
opinion at one Of his press conferences.
Varied Other Duties.
Assisting Charles G. Dawes in preparing
legislation providing for the Federal budget
after long preliminary study; the research
on Germany's capacity to pay, which
formed the backbone of the Dawes repa-
rations plan, are other examples, to say
nothing OF the various occasions when
Brookings staff members are loaned" for
special studies by governmental depart.
ments or congressional committees
However, DR.. Moulton. head of the
Brookings Institution, will tell you that
1t Is not the function of its publications
70 give advice. And this sentiment will be
heartily indorsed by DR.. Nourse, co-author
OF the price-making study. In this study,
as in its predecessors, the work was done, as
the grant of the Institute of Economics ex-
presses it, for the purpose of ascertaining
the facts about current economic problems
and OF interpreting these facts for the
people of the United States in the most
simple and understandable form"