Evening star., 1944-06-15

ization and the complex economic
problems they will bring.
The profound nature of the
changes we must face is evident in
the trend Of affairs in Europe.
Russia, with whom we are destined
to have progressively closer eco
nomic relations, is completely
e-controlled economy. The after
math of war will see a tremendous
rise in Western Europe of state
ownership of resources and indus
tries, what we call state socialism.
The problem is we'll illustrated in
the question of what is to become
of the big industries of France,
which the Germans have taken from
their former private owners. 1t is
likely that a large portion of this
French production will become
state owned.
The trend in Great Britain is be-
coming increasingly clear. Lord
WoOlton has just rendered an official
report for the British Conservative
party which would take Great
Britain far along the path of gov
ernment control of industry.
silent Directorate" Felt.
The plain facts are that Europe
and Great Britain are moving as
they are in economic thinking be-
cause of an insistent demand on the
part of those millions of men who
labor but do not direct. They de-
mand that they shall be protected
against the hazards and unpredict-
able destruction Of human values
involved in the violent fluctuations
of modern industrial life.
We are facing the same situation
here in the United States. And
the full employment which has been
created by war will make the de-
mand for protection against post
war unemployment increasingly in
sistent. Already, looking to the
future, men are asking: Must we
have war to have jobs?
There Is no doubt that the pres
sure of state-controlled economies
in all of the countries with which
we must trade and live will in
multiple. intricate and subtle ways
inevitably affect our own society.
But because of our youth as ma
ton, our great geographical area,
our natural resources, together with
the enormous potency of our belief
in the possibilities of the individual,
our answer to the problems of
rehabilitation will not be the COM
plete controls of Russia or even the
elaborate controls suggested for
Great Britain. Despite the pressure
from without and the demands
from within. we have an opportunity
for a different answer. But only if
We recognize the basic causes of
unemployment and act with bold
ness and Imagination to overcome
them.
Clearing House for Problems.
Industry, labor and Government
local, State, Federal-should set up
cooperative mechanism which
will act as clearing house for in
formation and constructive pro-
grams. Through such mechanism
capital goods expenditures-such as
the building of roads, public works,
industrial plants-So important a
factor in the wide fluctuations of
our economic cycle, can be spread
and leveled over the years Plant
location and appropriate housing
can be rationalized to the end that
congestion and distortion in our eco
nomic system may be prevented.
But we must be realistic enough
to acknowledge that the best efforts
of private industry, even supple
mented by such intelligent cooper
alton, will not always be enough. In
addition the Federal Government
must exercise a counter -cyclical in
fiuence against depression In order
to preserve a reasonably high level
Of employment.
Some of the obviously necessary
measures to this end are: Direction
of the capital market to encourage
a flow OF new capital when depres-
sion threatens and to discourage it