Evening star., 1944-03-10
Letters to The Star
Advocate of Directive Policy"
Discusses Industry Report

Advocate of directive Policy"
Discusses Industry Report
TO the Editor OF The Star:
The Baruch- h-Hancock report has re-
ceived widespread acclaim. 1t outlines
various problems which must be solved
IN demobilizing America when peace
comes and gives suggestions on several
OF them. These suggestions indicate
what might be considered desirable poll
cies and principles in the light of which
some problems may be approached. In
other cases, even operating procedure Is
indicated.
However, it is not my purpose to take
up the report in detail, but rather to
commend its strength and indicate Ger
tain shortcomings from a more general
viewpoint
The report is sound document as q
sales prospectus for its contents. It
squarely places the ultimate RESPONSE
bility for rehabilitation policy upon the
Congress as our national board of d.
rectors. At the same time, the authors
are sufficiently courageous to state that
certain controls simply will have to be
continued after open hostilities cease.
They clearly state the urgency of the
problems and suggest an interim attack
by means Of executive action. But they
emphasize that this should be q tenn
porary expedient only and that legisla-
tion should be provided at the earliest
opportunity.
To the extent indicated, the Baruch.
Hancock report is q document of hieh
policy. Where 1t becomes more or less
specific with regard to parts Of the prob
lem, such as contract termination and
surplus property disposal, the report fits
into the field Of operating policy and
even procedure rather than policy.
But where the document fails to meas
ure up as really great Is in the absence
OF any reference to the larger overall
questions which must be solved before
any of the items which are covered can
even become important. Thus, Messrs.
Baruch and Hancock are still treating
symptoms rather than ailments. They
still are putting poultices on boils with
out going after the internal poisons
which make the boils break out. Let
me illustrate:
There is no hint Of the kind of policy
directives which must come from Con-
RreSS.
To state that we wish to keen . pri-
vate enterprise system as the best Of
systems is not sufficient. When there
is emphasis on Government action. how
much OF our production should be in
the hands Of private enterprise and in
what fields should Government predomi-
nate or operate exclusively2 On what
principles should the dividing line be
drawn?
To prepare a postwar tax plan and
put 1t on the shelf presupposes q rea-
sonably clear answer to the previous
question. Without that, the recon-
mendation cannot possibly be carried
out.
To Iquidate wartime controls when
they no longer are necessary Is q fine
recommendation and one which Is GER
tain to get popular approval. But what
are the conditions which will make
them no longer necessary? Should
these be defined In terms Of national
income, or Is the employment index to
govern, or is the Dow-Jones average to
be the barometer? Obviously, some
rather important policy directives are
needed here before any statistical meas
ure can be decided upon as sienpost
designating the practicable moment for
the elimination Of wartime controls.
The method suggested Tor the disposal
OF surplus Government property may
provide workable mechanism for do.
ing 50. However, the very definition
Of surplus" calls for 8 major. type
Of policy directive which is conspicious-
ly absent In tll6 Bardcl1- I3ancook ~
port. Similarly, the recommends atfon
that disposal be through ordinary pri-
vate channels Is an intereStinR one. and
also one which will receive wide.
spread acclaim from those who NAV
benefit thefefrom. But s. That method
necessarily the one witch bsst Win serve
the interest Of the people as whole?
The ordinary means Of doing business
involves stocks at different stages or
levels IN distribution process which
largely has been found unnecessary in
the war years and whose uneconomical
costs may not be In the best interest of
the Nation.
With regard to employment the Ba-
ruch-Hancock report suggests work
director" who shall have certain duties.
The post already has been filled under a
different title. However, there is no
indication as to the source Of jobs which
this super employment agency may
dispense
AS a matter Of fact the excellent "kit
OF tools" presented Is just that, and no
more. But there is no use devising the
best carburetor in the world for our post
war automobile unless some assurance
is provided for supply of gasoline to
be used in the carburetor!
HERBERT WACHSMANN.