Show I S SI I THE TilE DAILY WASHINGTON J I Fin Financial a n cia 1 Whirligig h i r 1 i gig I Written for The Telegram r m 1 By JAMES McMULLIN NEW YORK YORK New New York doesn't always say it with pledge plede hammers in criticising the time new deal An method of setting the administration straight worked straight worked out by the head of an nn investment counsel firm firm has has won cordial approval in high conservative quarters You are arc likely to see sec it widely used to win vin support for the conservative cause among those who voted yes in the Literary Digest t poll The Crusaders haven't adopted it officially officially off off- but it fits nicely with their style and supplements the thunder blood assault from Crom the Republican sector Boiled down the argument runs this way The administrations administration's purposes are sincere and sound Its It's right to set humanity above dollars dollars dollars dol dol- lars and okay to step up payrolls and shorter hours N R A and A AAA A A should be accepted in principle as part of a permanent plan Neither business nor labor should be allowed to dominate the government The government should confine itself to the role of umpire in jn labor disputes not disputes not try to act as dictator Observe the time cre crescendo cendo in that sequence S Then comes the bi big punch All these laudable laudable laud laud- able objectives will flop unless the profit in incentive incentive incentive in- in is encouraged more definitely Business Business Business Busi Busi- ness must be allowed to increase its income before it is asked to assume greater wage and hour burdens Its It's not too late ate to mend Tryouts of this sales talk on a minor scale have registered remarkably well A number I of local leaders believe they've found out how to use the new deals deal's very popularity to swing it permanently into safe channels and away from the socialistic theories of the brain trust Summer Business Outlook New York has become very bearish on the summer business outlook in the last few weeks Informed sources advance no rio less than seven reasons why the recovery machine is likely to togo togo togo go into reverse for fop the next two months 1 Seasonal factors and oversize inventories will brin bring a lull in manufacturing activity through h July and August This means loss of I payroll purchasing power which will be partially partially partially par par- but not nol entirely offset by drouth relief 2 Prices are arc due for a brief but dizzy tail- tail spin 3 Expenditure of P W A funds is still lagging lag lag- gin ging and wont won't be felt much before fall 4 The housing program can only succeed i if the government forces reduction of ot costs An Any move in that direction means more labor trouble 5 5 Trade negotiations under the presidents president's tariff authority will be too slow to help this summer 6 Direct loans Joans to industry by the R F Fe C Cand and federal reserve will fizzle for reasons re recently recently recently re- re given in this column 7 There will be plenty of refinancing under under under un un- un- un der the securities act but almost all of it for refunding purposes purposes not not for new activity which would put people to work Pep Seen by Autumn But the same sources expect plenty of pep pepin pepin pepin in the fall fan through handed free-handed government spending and additional use of monetary powers pow pow- ers including ers including further dev devaluation The housing housing housing hous hous- ing pro program ram should also be De in full stride by September if it is eyer ever going to be Some authorities poh out that inflation is already here in a subtle form that few people reco recognize nize The fhe extra funds raised by the treasury trea treas ury in recent months through h sale of securities represent chiefly bank subscriptions These paid for not in cash but in newly created credit credit credit-a a simple book entry The government then disburses this credit and thus puts puts' fresh money into circulation without printing it it Theres There's no serious objection to this form of inflation even by conservatives except conservatives except from the angle of a federal debt Theres There's plenty of about an eventual crisis from this cause but its it's admitted that intermediate intermediate intermediate diate effects should stimulate recovery Tammany T Leaderless Tammany will have to choose a new leader soon The inside ju juggling gling that's been going on onto onto onto to gain control is ruining discipline discipline and and Tammany Tammany Tam Toni many without discipline is Babe Ruth without a bat The fhe leaders are beginning to realize that their factional rows may land their machine ma mn chine in the which which wont won't do any of them any uny good Resentment increases among Tammany old- old timers at efforts by tho the recovery wing of the party to kidnap the Manhattan organization Fifty out of 84 jobs in the Manhattan internal revenue collectors collector's office have been handed to The regular boys think Mr FarIcy Farley Farley Far Far- ley Icy has done them dirt and sentiment is growIng growing grow grow- row row- ing that they've nothing to lose if tl they ey tell him to go peddle his papers elsewhere Local sharps name as the trading price c en Russian debt settlement to to to be paid through up jacked-up interest on commercial credits Russia bought boucht no U U. S airplanes last year year but but more aircraft engines than any other country 1931 1934 McClure Newspaper Syndicate |