| Show Round Merry Editors Editor's Note In another of the series of guest columns Joseph P. P Kennedy former chairman chairman chairman chair chair- man of the S SEC E C gives his view of ot the present present present pres pres- ent economic picture By JOSEPH P. P KENNEDY Former Chairman of the Securities and Exchange Commission V WASHINGTON In In my opinion the prospects for American business in the near future and for many months to come are extremely favor favor- able I Before I discuss the supporting arguments for a favorable business prognosis I deem it important important important im im- im- im to state that in making this judgment I assume that the president will be reelected First of all because such an event seems assured and secondly of my feeling that the forward progress of American business is more of a certainty certainty certainty on the supposition that the president is is to continue in office for another term Amazing Prosperity Return The basic economic argument for returning the administration to office and the basic argument argument argument ment for an optimistic view about the future of business are similar Under the leadership of President Roosevelt through the laws and policies policies pol pol- which he has sponsored there has occurred an amazing return of prosperity The methods adopted b by r the president have generated a driving ing force which inevitably will carry our economy economy economy econ econ- omy to more prosperous prosper days The proof of our restored economic health is reflected in the business business business' bus bus- iness mess indices Not one of them fails to tell the story of an amazing improvement since the in inauguration inauguration in- in aug ration of President Roosevelt In giving the credit to the president for the extraordinary restoration of our material welfare welfare welfare wel wel- fare I am not unmindful of the assertion of the opposition that such a claim is fallacious First I of all the president a acted ted on a number of fronts I to stop deflation and he stopped it Secondly by a series of steps he sought to reestablish the impaired purchasing power of various groups such as the farmers laborers depositors in closed banks etc and he succeeded with the be result re re- re- re suit sult that the various groups were able to trade with one another This in contrast to the strangulation strangulation strangulation stran stran- of trade that ushered in his tion I believe the presidents president's policies were the cause and our present prosperity the effect This program of the administration has succeeded succeed succeed- ed in spite of an organized campaign against it the value of which as a device to stop Roosevelt Roosevelt Roosevelt Roose Roose- velt is questionable There has been such improvement improvement improvement im im- im- im provement in the condition of all classes of Americans that the argument for hysteria falls on unreceptive ears Cheap Money loney One of ot th the most favorable factors for the future of business is the plentiful supply of money and its cheapness i. i e. e the low interest rates Plentiful money r represented presented by bank demand deposits at new high levels and by to total total total to- to tal bank deposits at figures almost equal to the levels spells but one thing thing thing- widely distributed purchasing power with a consequent ability to buy goods We have an demand for housing railroad equipment industrial plants public utility plant equipment etc This is largely due to the limited replacements of six years ears plus the vast improvements in the qualIty quality quality ity of such items available today In particular residential construction for six I years has been far below the needs of the coun coun- try There are many signs that this feature of ot our oUt economy is about to expand with a consequent consequent consequent conse conse- quent absorption of a multitude of our The experts do not hesitate to say that once the building trades begin to boom all phases of our economic life will be given great stimulus Changing Horses One might suspect that the argument against a change of administration sounds a bit like the discredited argument of Mr Hoover for not changing horses There is this vital difference In 1932 the driver was bringing the country almost hourly from irom bad to worse in a deflation which was causing widespread misery President President dent Roosevelt on the other lother hand has demonstrated demonstrated demonstrated demon demon- amazing skill in rescuing the country from the depths of despair Perhaps two other observations are relevant In the first place congress is bound to be Democratic In the second place lace the friendship of labor for the president I is is so pronounced that his defeat defeat defeat de de- de- de feat might be taken by labor to mean that the country resents the presidents president's activities in their behalf Such an attitude of mind would make the peaceful settlement of of- industrial disputes even more improbable Remember many thoughtful capitalists aware of the world-wide world unrest regard the new deal with friendliness be because because because be- be cause it enables our system to bend without breaking War Menace 1 Now a word about the foreign picture Even the most confirmed optimist must view the in international international international in- in scene with concern The lesson of the g great eat war seems to have been lost on all aU leaders but the president By the development of the good nei neighbor policy he has increased our prestige abroad In the field of Latin-American Latin relations the restored confidence resultant from this policy is harbinger of increased trade already in process process process proc proc- ess of improvement Although the state department department department depart depart- ment trade agreements have been in force only in a limited fashion as yet alre already dy we can appraise appraise appraise ap ap- ap- ap praise them as a definite and realistic contribution contribution contribution tion to 19 a world economy which is thoroughly maladjusted through tariffs quotas and other restrictions The president is a capable hand at this game of negotiation Thus with President Roosevelt at the wheel my mr forecast of the f future ture of this country immediate immediate imme imme- diate and remote at home and abroad is a re reassuring reassuring reassuring re- re assuring one Copyright ht 1036 by bi United Feature Syndicate Inc ine |
