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Show NA 4ATIWAL TIONAL TIONALAFFAIRS NATIONALAFFABRS 4ATIWALAFFAIRS NATIONALAFFABRSReviewed AFFAIRS AFFAIRSReviewed Reviewed byCARTER by byCARTER byCARTER CARTER FIELDCurious FIELD , Curious Cunous picture putzLrc : devel developed develoiled developed oped oiled opedIn oiledin ire In healmg healing hem ing ore on theMead the theU'ad theifead U'ad Uad ifead { ( ' b bill l to extend ettend ; loansto l lans loans loansto ans ansto to small business busmess . . . Dan Dan- Dangers Dan-gcrs Dan gcrs - . gers in the bill bzll pozntedout pointedout pointed poznted outFmancmg outFinancing out outFinancing Financing Fmancmg of TVA TV A hecomes be becomes becomes comes four sided question questionEuropean questIOnEuropean questionEuropean European dctators dictators dctatorsJolted dictatorsjolted dictatorsjolted , Jolted by the receptiongiven receptIon receptIongzven receptiongiven gzven given King Kzng George and andQueen andQueen andQueen Queen Elizabeth Elzabeth ElzabethIn Elizabethin , in Canada CanadaamI Canadaand Canadaand amI and the United Umted States WASHINGTON WASInNGTON WASInNGTONA WASHINGTONA -A A - A bit ot of testimony testl testa testlmony testamony mony before the temporary natIonal natIonaleconomIC nationaleconomic nationaleconomic economIC committee put together togetherWIth togetherwith togetherwith WIth President Roosevelt s enthusi enthusiastIc enthusiastic enthusiastic astIc endorsement of the bill of Sen Senator Senator Senator ator James M Mead of New York Yorkfor Yorkfor Yorkfor for loans to small business busmess and then thenadded thenadded thenadded added to the frequently stated doc doe doctrme doetrine doctrine trme trine of o1 the President that one of ofthe ofthe ofthe the causes of the bust of 1929 "as as was "asa wasa " wasa a tremendous increase in over overcapacIty overcapacity overcapacity capacIty by our producers unac unaccompamed unaccompanied unaccompamed compamed companied by increased spendmg spending spendmgpower spendingpower spendingpower power to take tahe up the slack slach presents presentsa a curious picture pictureIt It almost justifies the pessimIsm pessimismof of Chairman Marrincr Marnner Marriner S Eccles Ecclesof Ecclesof Ecclesof of the federal reserve board as tothe tothe to the good that the Mead bIll would do it If enacted enactedThe enactedThe enactedThe The curious cunous part ot of the whole wholething wholething wholething thing is that Mr Roosevelt , , , it would wouldseem wouldseem wouldseem seem would encourage the same samesort samesort samesort sort of increase in m over capacity by bymeans bymeans bymeans means of the Mead bill that he be began began began gan deploring deplormg in m his 1932 accept acceptance acceptante acceptance ance ante speech He spoke then of the thevast thevast thevast vast profits of the corporations In Inthe inthe inthe the good years and wanted to know know"hat knowshat knowwhat "hat hat shat " had become of them Someof Some Someof Someof of them he declared have gone goneinto goneInto goneinto into increases mcreases of plant now stand standing standIng standing ing stark and IdleH1s idleHis idle idleHis His H1s theory then as enunciated enunciatedmany enunciatedmany enunciatedmany many times hmes since was that if tlus this tlusmoney thismoney thismoney money instead of being bemg put into un unneeded unneeded unneeded needed addIt additons ons to plant capacity capacityhad capacityhad capacityhad had been paid out in m wages or oreven oreven oreven even dividends the discrepancybetween dIscrepancy dIscrepancybetween discrepancybetween between buying buymg power po.er poer poser . and produc producIng producing producing Ing power would not have ha1.e ha1e hase . zoomed zoomedto to the point where it produced the the1929 1929 crash and the depressionReference depressionReference depression depressionReference Reference to this testimony leads leadsto leadsto leadsto to speculation as to whether gov government government government ernment aid to the little fellows may maynot maynot maynot not work worh the same havoc that greed greedon greedon on the part of o1 the big fello\\ fello fellows fellos felloss \ \ s pro produced produced produced duced in 1929Points 1929 1929Points ' I Points Pomts Out lrherent Inherent InherentDangers InherentDangers , Dangers in [ n Mead lIIead Bill Bdl BdlOn BillOn BillOn On the stand was T N B Hlchs Hicks HlchsJr HicksJr HicksJr Jr urging on behalf of the Wyom WyomIng Wyoming Wyoming Ing valley industrial Industnal de\ de des deelopment de\elopmentfund de elopmentfund \ elopment elopmentfund elopmentfund fund of Wilkes Barre Pa more more1 1 beral cred t . t . He said there if v . was . as asmall a asmall asmall small silk throwing company whichwould wluch which wluchVI whichwould VI would ould buy add tional tlonal machines machmes if It Itcould itcould itcould could borrow cheaplyAre cheaplyAre cheaply cheaplyAre Are you satisfied inquired mquIred Sen Senator Senitor 1tor ator ' Joe 0 O Mahoney of W Wy Wyoming omlng ommg ( no noconnectIOn noconnection noconnection connectIOn with the W Wyoming ) ommg valleyin valleym valley m in question ) that there is a market marketfor marketfor markettor for the product of this company If IfIt ifit ifit It were enabled to acquire acqUlre the ma machmery machinery machinery machineryThe chmery chinery chmeryThe chineryThe The company already has the thebusiness thebusiness thebusiness business Senator replied Mr Mrh Mrh Mrh h cks ' ' They 'They are already farming farmingit It out under contract . . And not doing it themselves themselvessaId themselvessaid themselvessaid saId Mr Hicks They want to do doIt doit doit It in our commumtyWell communityWell community commumty communityWell I Well it if the business is being per performed performed performed formed on contract contInued continued0 contInuedo o 0 Mahoney this financing financmg wouldmerely would wouldmerely wouldmerely merely mean shifting shIftmg the productIOn productIOnfrom productionfrom productionfrom from one plant to another plantYes plantYes plant plantYes Yes said Mr tir H cks eke tor for all allpractical allpractical allpractical practical purposes It means on onthe onthe onthe the other hand in m our particular particularcommunIty particularcommunity particularcommunity communIty three hundred lobs lobsSenator lobsSenator jobsSenator jobsSenatorBut Senator SenatorBut But But , , , retorted 0 O Mahoney three threehundred threehundred hundred jobs lobs in your commumty community communitytaken communitytaken taken away from some other com corn communlty cornmunity cornmunity cornmunityThis munlty munity munltyThIS munityThis This is not cited by the writer writerto writerto writerto to demonstrate that the Mead bIll bIllis billis billis is bad or would work harm But It ItIS itis itis IS cited to show that there are cer certa certo certa ta to n dangers in the Mead bill Just lust Justas lustas juslas as there are inherent dangers in inany inany inany any government control of cred t tor tor tor or anything anythmg else for that matterwhich matter matterwhich matterwhich which arbitrarily arbltranly changes the lives livesand livesand livesand and habits of peopleSometimes people peopleSometimes Sometimes There Are The inference infcrencc taken by the coal coalpeople coalpeople coalpeople people of course was that TV TVA TVAwould TVAwould A Awould would build additional hydro elec electrIc electric eicctrie trIc plants That is where the coal coalmtercsts coalinterests coalinterests mtercsts interests come in for obviously ev every every every ery time a hydro plant is built lust lustthat lustthat justthat that much of coal market departs departsforever departsforever departsforever forever no matter how the result resulting resultlog resultIng ing log electricity Is usedBehmd usedBehind used usedBehind Behind Behmd the scenes the private utility utIl utIlity utility ity folks have been in a quandary quandaryNturally quandaryNaturally quandaryN-iturally quandaryN iturally N\turally N turally Naturally ' \ - they have the same m in mterest interest interest terest as the coal people in m prevent preventJng preventIng preventing Jng Ing If it possible further invasion of ofthe ofthe ofthe the electric field by the government governmentThey governmentThey governmentThey They are especially cspecially close to the thecoal thecoal thecoal coal people in m their Interests since sincemost sincemost sincemost most of the private pnvate utility uUbty execu executIves executives executives tIves now figure that current can be beproduced beproduced beproduced produced more cheaply from coal coalby coalby coalby by using usmg modem modern methods than It Itcan itcan itcan can be produced by water power If Ifdue ifdue ifdue due allowance is made in comput computmg computing computing mg ing its cost for Intereston interest Interest- interests - on the cost costof costof costof of the h hl hdro } ) dro electric plant and for forta"es fortaxes ( or ta"es taes taxes " Which brings in m another angle for forthe forthe forthe the state county and municipal mumcIpal gov governments governments governments ernments In Tennessee were Vlere sere anxiousto anXIOUS anXIOUSto anxiousto to force a provision into mto the bill billwhich billwhich billwhich which would require the TV TVA A and andthe andthe andthe the local agencies set up for publIc publIcdIstrIbution publicdistribution publicdistribution dIstrIbution of electricity to pay paymto payinto payinto mto into the state and local treasurIes treasurIesthe treasuriesthe treasuriesthe the same amount of money each eachyear eachyear eachyear year which they would have paId paIdhad paidhad paidhad had they continuedDon't continued contmued continuedDon't Don't Dont ' LiAe LIJ.e LIJe Lihe . to Have PublicPower P"bllc Pbllc Public PublicPower " POI Power er Systems SJstems Handicapped HandicappedThis This is a sore point pomt with the pub pubIIc publie pubhe IIc lie ownership advocates They do donot donot donot not like hke to have the public power powersystems powersystems powersystems systems handicapped with th s scharge scharge scharge charge of taxes Naturally the prl pri prlvate private pnvate vate utility utll1ty people are keen for It it , , contendmg contending ' ontendmfi that no iardstick yardstick ardstlck ap ' I I preaches proaches fairness IS m in mcluded ineluded ineluded cluded eluded In tact fact taxes and a com corn comparable cornparable cornparable parable amount of interest mterest are the thet thetwo thetwo t two o chief advantages which wluch publ pubi c celectrIc celectric celectric electrIc systems have had over pn pri pnvate private pnvate vate systems in m fixing fixmg 10rates low 10\\ 10 \ ratesDavId ratesDavid rates ratesDavid David E Lilienthal pointed pomted out In Inthe inthe inthe the TVA special committee hearIngs hearIngsat hearingsat at Knoxville last summer that the thegovernment thegovernment thegovernment government could borrow money for for2 2 per cent while private enterprIse enterprIsewould enterprisewould enterprisewould would have to pay much more But ButprIvate Butprivate Butprivate prIvate utility men have been con contendmg contending contending tendmg tending ever since smce this is only part partof partof partof of the story-that story that story - that m In fixingaates fixing fixmg . .rates rates . the theTVA theTVA theTVA TVA has made no charge whatever whateverfor whateverfor whateverfor for the millions milhons of dollars mterest interest mterestevery interestevery interestevery every year the taxpayers have to topay topay topay pay for the cost of the TVA prolect pro3ect prolectAlso pro3ectAlso projectAlso Also that in local public ownershipsystems ownershIp ownershIpsystems ownershipsystems systems 45 per cent of the cost costwould costwould costwould would be a free grant from PWA PWAWIth PWAwith PWAwith WIth the other 55 per cent at a low lowrate lowrate lowrate rate of interest . . But the utility people would 1 I ke keto keto keto to see government money actually actuallypaId actuallypaid actuallypaid paId for the Tennessee propertIes propertIesand propertiesand propertiesand and the stupid possibility of compe competItIon competition competition tItIon between betwcen private and publ pubi c cI cownership cownership ownership systems prevented So Sothey Sothey Sothey they would like to see the b 11 11passed 11passed 11passed passed with certain amendments amendmentsThe amendmentsThe amendmentsThe The coal people don t care much muchabout muchabout muchabout about the amendments but want wantthem wantthem wantthem them written wntten in if the bIllIS bill is to passReception pass passReception Reception Recephon of British Brzhsh Rulers RulersIn RulersIn In Canada CaTUlda Jolts DictatorsWhether DictatorsWhether Dictators DictatorsWhether Whether British Prime l\hmster l hmster Minister lhmsterChamberlam MinisterChamberlain \ MinisterChamberlain Chamberlam Chamberlain planned it that way way way"may waymay ' " ' may never be ! . known .nown nown but the VISIt VISItof visitof visitof of the king kmg and queen to Canada Canadamay Canadamay Canadamay may easily have stayed the hands handsof handsof handsof of Mussolini Mussohm and Hitler for some sometime sometime sometime time to comeThe come comeThe The reports of the tremendous tremendousovation tremendousovation tremendousovation ovation which their majesties re recelVed received received celVed ceived from Quebec to Vancouverand Vancouver Vancouverand Vancouverand and back must have surprised and andstartled andstartled andstartled startled the foreign offices of Berlm Berlin Berlmand Berlinand Berlinand and Rome as much as they did didtl didthe didthe tl the ' > e Canadian politicians There IS ISno isno isno no speculation about this Emment Eminent EmmentI Eminentpolitical Eminentpolitical political leaders of o1 all parties m in mCanada inCanada inCanada Canada frankly said so to VISitIng VISitIngAmerican visitingAmerican visitingAmerican American newspaper menIn menIn men menIn In short . , , the greeting greetmg of theCanadians the theCanadIans theCanadians CanadIans no matter what was the themother themother themother mother country to their own fathers fathersand fathersand fathersand and mothers put an ent rely d fIer ffer fIerent fferent flerent ent face on the probabilities as to towhat towhat towhat what Canada would do if Great Brit Britam Britamn Britam am amn should become involved mvolved in m a awar awar awar awarIt I war warIt It is a truism in pobtics polJtlcs politics certainlyin certamlyIn certamly certainly i In the United Umted States and probablym probablyin probably m in Canada that it is not the truth truthwhich truthwhich truthwhich which is important , , but what peo peopie peopie peopie pie believe Carrying Carrymg on the thought thoughta a bit further it is not what the peo peopie peopie peopie pie believe which is really impor importantm importantm Smportant tant-m tant m - m between electIOns-but electIOns but electrons-but electrons elections - but what whatthe whatthe whatthe the politicians they have elected to torepresent torepresent torepresent peoplebel represent them think the people peoplebel peoplebel bel eve eveIt eveIt eveIt It is as simple as that thatMental Mental Attitude of Crouds |