Show WALL STREET VI VIEWS I By James McMullin Financial Observer c v NEW YORK YORK Many Many industrial and financial conservatives are ere gleefully interpreting the election results as a long step toward the return of the good old days when business was relatively Unfettered unfettered unfettered un un- fettered by government regulation regula regula- tion lion They foresee a Republican victory in iii 1940 to be followed by abandonment of expensive and impractical experiments and a reversion to the principle of laissez faire But the keenest New York analysts analysts ana ana- maintain that these optimistic optimistic optimistic right wingers are kidding themselves in a big way They point out that with few exceptions exceptions exceptions the most impressive Republican Republican Republican Re Re- publican victories were scored by liberals who accepted the new deals deal's social and end economic objectives objectives objectives tives in m principle and confined their attacks to the methods by which Mr Roosevelt has sought to attain them This was notably true of Taft in Ohio Barbour in New Jersey of Danaher in Connecticut of Tobey in New Hampshire of Reed and in Kansas of Stassen in Minnesota of the G. G O. O P. P winners in South Dakota and Oregon It was also true of the OBrian Dewey ticket in New York which made a far better better better bet bet- ter showing in defeat than any other Republican candidates have done in the past 10 years Th only G. G O. O P. P triumphs in which the conservative wing of the party was clearly dominant were in Pennsylvania and Michigan Michigan Michigan Michi Michi- gan and even in the Keystone state the reelected Republican senator James J. J Davis has a consistent record as a friend of labor Astute observers of political trends insist that the G. G O. O Ps P.'s one real hope of continuing to gain in popular favor lies in the national ascendancy of the liberal liberal liberal lib lib- lib lib- eral element and in flat repudiation repudiation repudiation tion of the ultra-conservative ultra leadership typified by National Chairman Hamilton and by the Pews and Grundys in Pennsyl Pennsyl- vania It is admitted that this may mey cost the party dearly in terms of financial support from wealthy contributors but that isn't necessarily necessarily necessarily a fatal handicap Barbour was elected to the senate from New Jersey with a e campaign fund less than one-fifth one as large as the war chest donated for the unsuccessful attempt to carry the state for Landon in 1936 4 Banking Bankin insiders get word thai Japan is preparing to flit file a answer to Secretary Hull Sot not insisting that our open door polio pall for Chinese Chine trade be respected The Japanese government is e n et to suggest that it is Perfectly Per pei willing to agree to o Ou open door demands provided ti thi th American g government will for mally recognize its conquests w on the mainland of Asia That offer will presumably l b rejected by Secretary Hull in Ia t n uncertain terms Insiders predict predia that his reply is likely to be thi tb hottest diplomatic document nt K to emanate from the state depart ment meat since the notes that pre re ceded our declaration of war on oj oi Germany in 1917 He will make it pointedly clear that it is no not aol American policy to sanction un n. warranted acts of aggression b lj by giving them official diplomatic recognition j t That will leave our relation relations with Japan at an impasse impasse but bat the interchange of notes should strengthen public support in this this country for President forthcoming preparedness and n re armament t program g Certain features of the legisla tive program to be jointly pon by railroad managements and railroad unions with unions with the ad administrations administration's administrations administration's administrations administration's ministrations ministration's support support can support can i a ready be forecast although th the program as a whole will not as n assume sume definite form for at least two months 1 For on one thing drastic revision of the famous section 77 will be recommended This law was sup sip supposed posed to facilitate the financial reorganization of railroads in re receivership but has had precisely the opposite effect Reorganization tion procedure must be greatly simplified to stimulate painful but necessary operations on top heavy capital structures J j The carriers and their workers will also unite behind Congressman Congress man proposal to repeal the short long-and-short-haul law This This' law forbids railroad railroads to charge less for a long haul than for al shorter one over the same sane route thus handicapping them ia is long distance competition with ships and pipe lines j Its repeal would would enable them to pick up a much larger proportion proportion tion of the heavy freight traffic traffie between Chicago and the Pacific Paddle coast for example where they are now underbid by water car car- I Copyright 1938 for The Telegram |