Evening star., 1939-03-05
Negative Results Of
New Deal Appraised
BIZ ODen L. Scott

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vanced so confidently only six years ago,
today is in retreat with Mr. Roosevelt
engaged in maneuvers to prevent that
retreat from becoming a rout.
Fixed objectives were set by the Presi-
dent when he assumed office. Those
objectives were to be reached by the
methods that. when supplemented, be-
came the New Deal. Yet at this turn
ing point in the struggle to reach the
fixed objectives, the record of attain
ment is limited.
Industrial recovery remains far from
attainment. The goal of full employ
ment is almost as far away as ever.
Agriculture is facing nearly as critical
a situation as it faced when the Presi-
dent took office. Government finances
never we're in so bad a condition as they
are today. The objective of revived
foreign trade is about as far away as
ever it was.
And, at this late stage, President
Roosevelt is waking up to the fact that
the New Deal has failed to produce a
popular leader to carry on where tradi-
ton requires that Mr.. Roosevelt leave off.
In view of these facts, has the New
Deal that President Roosevelt created
been without lasting significance? Is
there nothing tangible that will be left
behind as of permanent and far-reaching
importance?
Those questions are the object Of at
tention from New Dealers themselves at
the moment. These New Dealers are
convinced that, with all its shortcom-
ings and all its failures to reach ma ajor
objectives, the Roosevelt regime during
its period of aggressive advance did ac-
complish much of permanent signifi-
canoe and value. Three broad accom-
plishments are outlined, as follows:
First, the New Deal established the
principle that the Federal Government
is responsible for the support of the
aged, the infirm and the unemployed
and must maintain machinery to deal
with the problems of these groups.
Second, the New Deal established the
dominance of Government over high
finance through the regulation by the
Securities and Exchange Commission of
security issues and security markets, by
control over utility holding companies,
and by public control over bank credit.
Third. the New Deal established the
right of labor to organize and to bar
gain collectively with employers through
representatives of its own choosing, and
under the positive protection of the Fed
eral Government
The conviction of New Dealers is that
these accomplishments of recent years
will withstand any attacks that might be
made upon them by succeeding admin
istration. They are held to represent a
definite advance in the direction of
eventual economic stability even If, in
themselves they are not the answer to
the country's economic problems.
In addition, there are listed number
of secondary accomplishments growing
from the experiments of the last six
years.
Through those experiments the Federal
Government has gone far to sell to the
country the idea that spending or "in-
vestment' by the Government itself can
stimulate business improvement just as
readily AS spending or investment by
private business. There has yet to be
proof, however, that the recovery pro-
duced by Government spending and
lending can be maintained once that
spending and lending are reduced or
| withdrawn.
At the same time the Federal Govern
ment, through its experience with the
Agricultural Adjustment Act. has learned
much about the problem of agriculture.
1t now knoWs-after years of experiment
| that the solution of the farm problem
is not to come through control of pro-
duction alone or price control alone.
but is linked inherently with the whole
problem of world trade and of income
distribution. That knowledge however,
does not render the problem any SIM
| pier of solution.
The 1884 venture in dollar devalua-
ton and money manipulation, coupled
with silver buying program. served to
| demonstrate that economic recovery and
stability are not to be attained merely by
| tinkering with the Nations currency.
| BY this experiment the New Deal effec-
! lively answered the argument that all
| the country needs is more money"
Experience since 1884 demonstrated
that Cordell Hull's policy of reciprocal
| trade agreements does not serve auto
matically to broaden world trade
| N. R. A. demonstrated the difficulty
and apparent futility of trying to produce
| recovery by letting businessmen control
| prices and production in a grand scram-
BILE to assure everybody profit.
Thus the New Deal is held by its spon-
sors to be important for its negative re-
| suits as we'll as for what appear to be
permanent achievements. In six years
| the Nation has learned fairly we'll what
| not to do in seeking recovery, even
| though it still has to learn what def
| nitely can be done to assure the "abund-
| ant life" for ALL
At this stage, the New Deal leaders are
asking: Where do we go from here?
The answer, so far as more expert
| ments go, appears to be: Nowhere.
President Roosevelt is trying to assure
businessmen that his main purpose now
| is to achieve national unity" The def
| mite attempt is to be made to heal
wounds that were opened by the battles
| to impose New Deal on the Nation
| particularly New Deal that was based