Evening star., 1938-12-02


second depressions of the last nine
years were unfolded before the
congressional committee studying
monopolies and economic trends.
But, on the same day Mariner
s. Eccles, governor of the Federal
Reserve Board, was telling the
American Institute Of Banking In
New York some things that fitted
IN exactly with what the Joint
committee was hearing at the
Capitol.
Most significant was the state
ment by Mr.. Eccles that he had
come to the conclusion the role OF
government should be that of a
"co-ordinator, to adjust and ad-
judicate conflicting interests so that
they will not result in injury to the
public" He added that government
must be impartial" and that gov-
ernment must not resort to puni-
tive or coercive methods" This is
a different kind of language from
that which has been spoken in
Washington during the last five
years by the administration as, for
instance, also this remark by Mr..
Eccles:
Il feel there can be no justifl-
cation for Encouragement, if we
all will quit calling names, if we
will generate more thought and less
heat and set ourselves to the task
Of understanding the nature of the
economy in which we live"
Back of the Name Calling.
Presumably it does no good to SIX
who started the ''name-calling" and
why it was deliberate part of
administration strategy just a year
ago when Messrs. IckeS and Jackson
turned on the faucets of invective.
But there has lately been q DISPOSE
tion-especially since the elections
on the part OF administration OH
cials to insist that bygones ought
to be bygones. And the odd thing
Is that business men themselves feel
the same way If only they can see
something constructive on the
horizon out of the oft-repeated pleas
for cooperation between Govern
ment and business.
What kind of "co-operation" is
under consideration? Mr.. Eccles
says first there must not be "a com
pletely controlled economy-that
would be RECOMMENDATION, not capital
istic democracy" Nor does he want
Government substituted for private
enterprise. He does want the Gov-
ernment to encourage private enter
prise 80 that 1t may furnish the
greatest possible employment and the
greatest possible production and dis
tribution of goods and services"
But Mr.. Eccles doesn't stop there.
He goes on to say that in democ-
racy business and industry cannot
sensibly object to having the Gov
ernment provide for those for whom
private enterprise does not make
provisions, if Government has first
given private enterprise every rea-
sonable opportunity for profitable
operation and for giving employ
ment."
Reasonable Opportunity"
But who is to decide what is or is
not reasonable opportunity?"
Under present conditions in the elec-
tr1c power industry, Congress does
not decide nor does the American
electorate, but public ownership is
fostered by the decision Of one man
p. w. A. Administrator Ickes, who
also can subsidize private competi-
ton whenever he pleases by making
Tree grants Of public funds.
When all is said and done, also
after listening to the many "if's"
proclaimed by DR. Lubin in his
very able and constructive presen-
tation before the Anti Monopoly
Committee, the practical question is
how can production be stimulated
In durable goods industries when
one OF the biggest industries of all
the electric light and power busi-
ness that spends $1,000 100000 q
year normally for construction-is
throttled by the Governments own
policies! DR.. Lubin painted a pic
tuce of future opportunity under
the capitalistic system If the ma
tional income could be increased
materially and If the pay rolls could
be substantially increased and If we
could have in America a proper
balance between the goods and
products we need and the services
that go along with them.
So, too, did Mr.. Eccles say all
would be well with our budget if
we had higher national income
out Of which to collect tax revenues.
All these ifs" have long ago been
conceded, but the practical ques-
ton is how to get that higher ma
Gonal income. American industry
has been crying out in vain that
1t could do the Job If the Govc--'-
trent did not intervene and harass
and compete ana owe. sp--.u. A..
there is going to be more recognition
Of this contention than ever before
At least a start is made when it is
admitted offlcially that production
can be and should be advanced in
America to bring about higher
standard of living for everybody.
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