Evening star., 1940-10-24

them, he could initiate the money
supply by II billion dollars.
As q result, our private banking
system has been subjugated. Th'
Federal Reserve System has beer
reduced to a mere appendage o.
the Treasury. It's policies are de.
termined by the overwhelming needs
Of the Government to finance thu
staggering deficits.
But the New Deal has gone much
further. It has put Government it.
self deeply into the business o1
lending money. Last February, tn.
Secretary of the Treasury reported
to the Senate that 81 Government
agencies have loaned nearly IS bill
lion dollars.
Federal agencies own in part anc
control In part more than 200(
corporations having assets Of foul
billion dollars. Through regulations
loans. subsidies and fear, such agen.
cies exert a partial control over
more than $4,000 corporations hav.
ing assets of 10 billion dollars.
Great Fund Used rs
Gigantic Pork Barrel.
The President has asked for anC
has obtained from Congress, &c
blank check appropriations totaline
more than Is billion dollars.
AS is only human under such
circumstances, he and those who
surround him have used this great
fund as a gigantic pork barrel. AS
must inevitably occur when such
conditions are permitted, the New
Deal leader has bought congress
sional support by rewarding his
friends and Furnishing his enemies
in both Houses of Congress.
The Federal Government today
includes no less than 1873 admins
trative bodies. These include the
Securities and Exchange Commis-
sion, the National Labor Relations
Board, the Federal Trade Commits
sion, and all the others. The men
who run these agencies are ap-
pointed by the President. He exer-
cises a powerful control over them
by holding out the chance of reward
through appointment to higher Of
fees. In many instances these ad-
are responsible to the
third-term candidate and to him
alone. And yet they have the
power to make the laws, and to
prosecute violators of those laws,
to sit in judgment upon them, and
to inflict penalties, after having
testified against them.
The powers of the Executive. the
Judiciary and the Legislature, which
the founders of this Government
were careful to separate, are con-
centrated in the hands of group
of presidential appointees. And
those appointeeS have boldly used
those powers.
In August of last year, the Ma
tional Labor Relations Board made
a deal with the Reconstruction FL
nance Corp. This provided that
whenever a charge of unfair labor
practices had been made or was
about to be made against any con-
Germ, the r. F. C. would black list
that concern.
Under the law a citizen has to be
found guilty before he is punished.
But not in the code of the National
Labor Relations Board Under the
arrangement with the r. F. c., the
mere charge of unfair practices
was sufficient to warrant exclud-
ing the victim from Federal fin
ancial aid.
Deadly Parallel With
Nazi Control of Business.
In Nazi Germany, the ownership
of most business is left in private
hands. but management is rigidly
controlled. Here in America we
have deadly parallel. Under the
S. E. c., private company was
recently told it could not issue
bonds, but must sell stock. The
men who run the S. E. C. knew
better than the men who were
retained by the owners to manage
that company's affairs. They in
sisted that the company must issue
stock-or nothing.
As a result, the directors Of that
company. finding their business
Judgment overruled by a Govern
ment agency, decided to do nothing.
The efforts of that business to
create more jobs were blocked by
bureaucracy.
No man appreciates more than
I do the need for regulatory
agencies. But the powers of these
agencies should be more precisely
defined They should not be dis
torted into instruments for giving
the executive complete domination
of our economic life.
The President could well say
toward the end of his third year in
Office that 'in "a months we have
built up new instruments Of public
power" but to this frank admission
he appended a strange qualification