The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1939-10-12

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The Republicans want to stick
around in order to keep a watch
full eye on Roosevelt's interna-
tional operations. But the New
Dealers want Congress to stay on
the job to head of fan expected
business slump. They are private
~ convinced the country is headed
for another recession in January.
So far there has been no sign
that the President intends to fol-
low this advice. But sub rosa
some of his advisers are filled with
misgivings for the economic fu-
ture.
Reason for their pessimism is the
fear that the current boom which
has sent indexes skyward and
brought bullish announcements
from some administration politicos,
is destined shortly to collapse like
a hot-air balloon. The inner
circles confidential analyses show
no cause for hurrahs. Instead they
reveal a far-froni-rosy background
situation as follows:
FIRST, the strong production
upturn Of the last six weeks is
largely an inventory bulge;
that is, production to increase
stocks of goods on hand, induced
by expectation of war orders and
by fear of cost increases as a re-
suit of the war. Example: In
one To-day period last month, tex
tile makers received sufficient or
ders to keep factories going full
blast for four weeks.
SECOND, there has been very
little increase in consumer buy
ing, and most of this also was
caused by war fears; in other
words, goods were bought for re-
serve purposes.
THIRD, despite the marked i'm
provement in manufacturing, the
unemployment situation continues
grimly unchanged, with not less
than 100000 workers still idle
and demands on the slashed WPA
as urgent as ever.
If the war should end, the New
Dealers are warning Roosevelt,
or even If it continues without bel
ligerent orders materializing as
quickly or in as large volume as
expected, a repetition of the 1887
crash is inevitable-that is, unless
Roosevelt keeps Congress in ses-
sion to adopt preventive measures.
BY preventive measures" they
mean more spending.
SOS PROGRAM
Following is the rescue program
they are urging in inner coun-
ellis: !
/. Revival of the lending bill,
which was defeated by the House
last session after being passed by
the Senate. This would stimulate
new utility construction and mod
ernizatoin of railway equipment
Although the railroads have been
buying some equipment Of late,
there is room for a great deal
more. The utilities are doing COM
paratively little new building, al
though experts estimate there is
need for at least $500, 100000 worth
of expansion a year.
2. Further liberalization of the
old-age pension system. This
was blocked last year by Secre-
tary Morgenthau and Chairman
Altmeyer of the Social Security
Board. The New Dealers contend
that another $3.50, 00O, 900 could be
expended through this channel
without adding a cent to social
security taxes.
3. A large-scale national de-
Tense program, aimed at building
up a moroccan navy, expanding
the army and air corps, and de-.
veloping adequate anti-aircraft
and motorized equipment.
FIGHTING WORDS
Following ALI Landon's nominal
ton of Senator Arthur Capper as
Kansas 1910 presidential choice, a
friend who encountered the gentle,
gerry reflects, too, the dictates o.
fashion. -.