The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1939-1949, 1939-07-06
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Thus, it appears to me that we
can treat the proposition from the
standpoint Of what will come from
the program in the way Of beneficial
results, If any, and to find, If pos
sible, what the long range effect VIII
be.
First, let me recall that during
the administration Of Herbert
Hoover, when the present depression
first fastened its fangs on our eco
nomic structure, there was the first
major outpouring of government
funds. The Hoover thought was to
stimulate business by lending money
and by spending for public con-
strlction. It was Mr.. Hoover. too,
who sponsored self hquidating
projects" for which federal cash
would be loaned-the idea being
that a seH-liquidati11g project would
earn enough money to pay Oft the
government loan. That was the way
the reconstruction finance corpora
ton came into being, and that was
the greatest mistake Of the early
days Of the world depression inso-
far as our nation IS concerned.
Well, the Hover administration
promoted loans for self-iqWdating
projects in q big way. As . stimu-
Liant Of business. the plan was q
magnificent flop. The current pro-
gram, being modelled exactly as
Herbert Hoover designed the first
one, also will be q glorious flop.
There is, as q matter Of fact. not
one bit Of difference between the
new Roosevelt program and the fu-
tile move In the Hoover day.
Few Have Confidence In
Policies Of Government
Whether this government lending
idea IS sponsored by Republicans or
Democrats, by Communists or Fas-
cists, the result is bound to be the
same as far as accomplishing any
thing toward business revival. BY
its very nature, government lending
creates q doubt in the minds OF
every one whether they recognize
it just that way or not. The feeling
that most every one gets Is mani
fest in the form Of q question: well,
where are we headed when condi-
tons are so bad that the United
States treasury has to supply money
upon which business operates?
Which, to my way Of thinking, is
simply saying that few, If any, per-
sons have confidence in the policies
of their government. It was dis
tinctly true in the Hoover admins
tration, and I think it is equally
true in the Roosevelt administra-
ton. .--.,r -s-s
But I want to go deeper into this
problem. There is something more
that we ought to think about, and It
makes me shudder to talk about
the possibilities inherent In moves
of this kind by a democracy.
Mr.. Roosevelt says that, without
q doubt, all of this money that he
proposes to lend win be paid back.
He said in his message on the sub
, iect that there would be no loans
approved unless there was assurance
that the sums would be repaid.
Which is all very well and good.
But experience Of banking institu-
tons and other lending agencies in
dicates that certain percent OF the
loans go bad. Poor management.
unforeseen. business conditions, the
deaths Of key figures, labor disturb
ances, changes in the taste Of the
buying public for certain market
able products-all Of these things,
as well as the responsibility Of the
borrowers, go to determine whether
the money will be paid back. And
so it does not seem unreasonable to
suppose that Mr.. Roosevelt Is bit,
teeny, weeny bit, optimistic about
recovering all Of the funds that are
loaned.
Personal Political Element
Is the Most Disturbing
# we can dismiss the doubt, how