TOP NEW DEALER.

Auckland Star, Volume LXVI, Issue 29, 4 February 1935, Page 8

TOP NEW DEALER.

UNORTHODOX REFORM

AW EXPERIMENTALIST. ROOSEVELT'S POLICIES. (By HENRY J. HASKELL). What manner of man is the top New Dealer? With the powers already granted him by Congress and with hie extraordinary prestige, the fundamental attitude and purposes of President Roosevelt assume immense significance.

He has captured the public imagination, and people generally demonstrated their belief in him in the recent election. But large elements in business and finance, if no'., hostile, are etill sceptical as to what they would call his "soundness" on economic policies. The attitude of these elements has much to do with that intangible thing, confidence, on which recovery so largely depends. What are they to think of him'/ Jcj he swinging right or veering left?

This laet question kliowh some misconception. 'J lie J , resident lias described hie position as being a little left of centre. This, ho insists, lie hue steadily maintained. He Ims changed his methods from time to time ue he thought circumstances required. But lie Ims kept steadily in view his. goal of "a more abundant life" to the average family. Ho believes thie can and (should be attained under the capitalist system, with abuses corrected and with extensions of Government control, collective nctioTi, and perhaps of public ownership where such extensions seem necessary. This is no Socialist programme. In general, it is, perhaps, no more revolutionary at thirl time than the square deal programme of Theodore 1-toosevelt seemed in hie day in hie war against monopolies, a* shown in the NortEern Securities case, or in his fight to put tooth into the Inter-State Commerce Commission. Some of its features that appear radical are commonplaces in conservative Britain. The major policy that arouses most anxiety among many who are generally sympathetic is the lingo spending which they regard as involving at best a heavy t.lx burden, and at worst the danger of uncontrolled inflation.

Looking at the Record. As this Inquiry Is based largely on the record of the last year and a half, it is essential to inquire what that record discloses. Tho vote in 1932 was not for Franklin D. Roosevelt. Tt was a vote against fue depression, which was symbolised, however unjustly, in President Hoover. At the outset of the new administration, the President's brilliant vigour in handling tho banking situation won universal applause. Then came the bewildering experiments for recovery that fitted exactly a public mood demanding action. Business had been reassured by the banking policy, and it forgot to be dubious about other things by the chance it saw of getting exemption from the anti-trust laws under N.R.A. For the first four months nearly everybody was happy. Such a situation could not last. As tho experimental policies developed— A.A.A. and N.R.A. and Labour policies and monetary policies and spending — the confidence of many elements, although not of the general public, was shaken. The tendency toward regimentation and unwise intolerance shown by certain administration leaders aroused fears as to the constitutional guarantees of personal liberty, including freedom of speech and the Pices.

Reform and Recovery. In the vast complex of polities undertaken partly for reform, partly for recovery, confusion was bound to arise. It was easy—and helpful to the administration —to point out contradictions in policies adopted. Some were inflationary in the sense of loosening credit. Some were deflationary in tending to restrict business activity. _^^^^^^^^ It was said, for instance, thu. wiuie the administration had rightly attempted to prevent gambling in securities, it had succeeded by some of its policies in making all securities a gamble. The New Denlers believe that in the emergency it was ueeeesary to adopt many measures rapidly, with little discussion. The inevitable result was. that rather serious mistakes were made thai might have been avoided had the questions been given fuller consideration. Some of these mistakes have impeded progress. This situation is frankly admitted privately in high administration circles. The President himself has said that the gold-buying policy did not produce the results expected. Using Orthodox Methods. The President's present attitude must 1)0 judged by what he lias done in the last six months. Ho ha/kept the dollar stable. He has not gone inflationist. He has consented to amend , the Securities Act. He has been willing to postpone the grandiose, "permanent" plan for insurance of bank depositors. He has wet up agencies to bring in private funds to relieve the debt situation and to promote building activity. He is retreating from price-fixing. He is emphasising the need of low costs in business to stimulate volume. He has used orthodox methods in Treasury refinancing. He has removed exchange restrictions. He has set seriously to work to revive foreign trade.

His most controversial policy concerns large Government spending, which the President hopes will help to revive the durable goods industries and also will safeguard the social structure from the hazard of demoralisation of millions of men long unemployed who, he fears, might lose their morale and become the prey to agitators.

Meanwhile, lie lias established control over Congress, and' for the first time a President will bo able to command a two-thirds majority in the Senate on treaties embodying hie foreign policy. It will be possible for him, if ho believes tho time is ripe, to deal realistically with foreign debte, which remain an obstacle to international trade and to currency stabilisation, and perhaps to obtain the repeal of the drastic Johnson Foreign Debts Act. T.V.A. the Central Project. As to tho real pattern of the Xew Deal, it is plainly evident in the Tennessee Valley projects. The T.V.A. is nearest to the President's heart. Here he hopes to demonstrate, as in a laboratory, what he has in mind for the country. That is, lie want? to take people out of shacks and house them modestly but decently, with some share in the gains of civilisation. He hopes, whether justifiably or not, that with cheap electric power it may be possible to develop small communities where people may work in local industries and supplement their income from small gardens.

To sum up, the record shows the President as a liberal experimentalist, but not a radical, who is anxious to see the capitalist system work better and more fairly in tho future than it has in the pa*t.— (N.A.N.A.)