Evening star., 1938-06-02
Pump.Priming Program
Promises More Unrest

To the Editor OF The star;
Pump-priming, as a means Of curing
the present depression, is doomed to
failure before 1t even starts.
It is generally admitted that one Of
the principal factors delaying recovery
is distrust OF the New Desl that is felt by
business.
Secretary Ickes Is reported to have said
that the peak OF pump printing will come
next year. Let us consider some OF the
dangers that threaten to continue the
uncertainty felt by business.
Take the Presidents message of April
20 on the subject OF the antitrust laws.
A reading Of that will give anybody
acquainted with business affairs some
realization of the tremendous disturb
ances that would follow adoption of the
Presidents views.
will mention two of the Presidents IS
many proposals in that message. One
is for the investigation OF the invest
ments Of the great insurance companies:
the other is suggestion that corporation
enough to make big business demon
strate its alleged superior efficiency"
AS steel Is one Of the industries speci-
fied IN the Presidents message, invite
attention to the statistics brought out at
the meeting Of the American Iron and
Steel institute on May rs, 1888, which
esablish the efficiency of the industry
and its helpfulness to the country dur
ing the depression.
Then there are the recent indictments,
under the present antitrust laws, of the
heads Of the largest automobile manu-
featuring companies. When all the facts
come to be known by the people the,
will prove to be additional evidence oi
hostility to big business.
The hostility Of the administration to
the Utilities is illustrated in its unwill-
ingness to accept provision in the
lending spending bill to give fair treat
ment to those private concerns whose
facilities are threatened with duplica-
ton by Government grants and loans to
municipalities.
Congress, having become convinced
that business recovery has been retarded
by the controversial tax impositions to
which the President seems to cling as q
matter of principle. has just passed tax
bill relieving business, to large extent,
from the impositions. but the President
has refused to approve the bill and it has
become law without his approval. The
indications are that the administration q
fight against this congressional action
will be resumed in the next session of
Congress, notwithstanding the claim of
business generally that the attitude of
the administration on these forms of
taxation has been one of the principal
( causes Of the present depression.
The railroad situation is almost cer-
tain to lead to number of bankruptcies,
causing heavy losses to banks, insurance
companies and other institutions carry
ing immense amounts Of railroad securi-
ties.
The e-and-hour legislation, claimed
by many opponents as destructive to
small businesses, Is practically certain to
cause much unsettlement during the
progress of the pump-priming.
Business has also to fear the posi-
bility Of special session of Congress this
fall to advance the New Deals views.
Altogether. there promises to be dur
ing the period Of pump-priming such a
crop OF developments unfavorable and
alarming to business as to Illustrate the
normal effects of the pump printing.
In view Of the evident determination
OF the administration to insist on alleged
reforms. regardless of recovery, 1t WOULD
seem the part of wisdom to divert the
proposed appropriations for p. w. A.
pump priming) to the increased relief
expenditures that undoubtedly will be
required. HENRY A. HAYWARD.