The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1938-04-28

Entered as Second Glass matter
ECONOMIC HIGHL1GHTS
During the last six months, it ha!
been a prevalent criticism of the
administration-made by friends a!
J well as opponents-that the Presi.
dent and his official circle appar.
emily greatly underestimate the
importance and the severity of the
slump in business that began last
October.
Whether or not the President act
ually took this attitude, it is obvious
that he now views the recession as
= a major crisis which has endan-
gered all the gains made since the
depths of 1892. Two dramatic
events occurring recently, wildly
illustrate this.
First, his last "fireside chat" was
almost startlingly different in tone
and attitude from most of its pred
eceSSOrs. As one anti-Administra-
ton newspaper, the Portland Ore
gonian, described it, There was no
batting of business, no hatefulness
of phrase, nor any appeal to class
consciousness. Instead there was
gratefully evident the recognition
of all classes of Americans in a
common Americanism, confronted
by identical questions to be solved
by fraternal solution" In other
words, the talk was highly concil-
iatory. Whether the President will
continue to hold such an attitude
cannot be said-but it is reason
able deduction that at the present
time the Administration has reach
ed the conclusion that it is essen
tial to extend a friendly hand to all
elements in our national life, to
dispel distrust and bitterness, to ce-
ment so far as possible the warning
factions, and to precede reform"
with an attempt at recovery"
Second, the Presidents message
to Congress shows how seriously he
regards present conditions. And
this message will continue to be the
subject Of tremendous amount Of
debate and difference of opinion.
Briefly, the Administration proposes
to fight bad times now with the
same weapon it used to fight bad
times before-a pump priming pro-
gram Of size unprecedented before
1882. It has three phases: I. Direct
government spending, through the
WPA, the Farm Security Admins
tratton, the National Youth Admin
istration, and the CCC. 2. The re-
lease Of about $4,000. 600 900 in new
credit through changes in the gold
and federal reserve policies. 8. The
creation Of new jobs through slum
clearances, highways, flood control
and other public works. It was sug-
gested that the SEC relax it regu-
lations somewhat in order to make
It easier for small business to get
new money.
The entire program would result
In the government spending $780,
100000 more than it is spending
now. Yet, while no provision Is
made for increasing revenue, it is
said that this will increase the ma
tional debt by only a third of that
sum. That seemingly magical trick
would be accomplished by de-steri-
lizing part of our vast gold reserve
against which no gold certificates
exist.
The former spending program,
which began almost as soon as the
President took office. was approved
almost unanimously by Congress
and by the nation as a whole. The
present program will not meet so
enthusiastic reception. One bloc
even though it favors increased
spending, will be unwilling to ap-
prove it unless some means of rails
Ing the money is found, so as to
not further boost the debt. A third
bloc thinks that tax and labor
troubles should be corrected before
Trying anything else and believes
that II business were aided in this
manner 1t would 60 ahead and spend
on Its own hook, thus obviating or
the need for government
spending on a larger scale. All such
blocs are important and influen-
are manned by Democrats
as well as Republicans. It is the
members Of the Presidents own ]
party. not the opposition, that have
made the present session of Con-
gress. eliminating in the startling
defeat of the reorganization meas
ure, a stormy one for the White
House.
There is the situation as it exists :
Today. We are in a period of leth- I
argic business and, while the con-
sensus Of expert opinion does not
anticipate further declones, it does
not anticipate substantial better
ment in the near future. either Tho