RECOVERY IN AMERICA

Press, Volume LXXIII, Issue 22252, 17 November 1937, Page 9

RECOVERY IN AMERICA

President Issues

Ultimatum

"PRIVATE INDUSTRY MUST

ASSIST"

(CHITED PRESS A3SOCIATIOH COPYRIGHT.)

(Received November 16, 2 p.m.)

WASHINGTON, November 15

Mr Roosevelt, in a message to Congress, issued a warning that if private capital did not take up the burden of recovery from business recession, the Government would. He assured the nation that the situation was not similar to the 1929 collapse, but he said that it must not be disregarded. Mr Roosevelt advocated some tax revision, but he warned Congress against creating new tax injustices, and he emphasised the importance of steps in the direction of farm and crop control reorganisation and national land conservation. The President warned citizens that they must give the Government their cordial and confident co-operation, and he cautioned Congress against new expenditures for which revenue was not provided by taxation. He reiterated that he would not swerve from his determination to carry on his wide social programme which pointed to higher standards of living and a more just distribution of the gains of civilisation.

A Significant Feature

The most significant features of the message were the President's continuous reiteration of the fact that he had no intention of abandoning the New Deal, a warning that it rested on a solid foundation, and that all would have enough. "The Government," he said, "cannot let Nature take its course without regard to the consequences. The Government must take up the slack if private enterprise does not respond. "We should provide flexible machinery which will enable industries throughout the country to adjust themselves progressively to better labour conditions. Much of our social programme is already in effect, but its continued and complete success depends on the wider distribution of the immensely enlarged national income. Deflation and inflation are equal enemies of a balanced economy. "I hope and believe that the Supreme Court will not again deny protection to the farmer which it now accords to others.

"I believe that the country as a whole recognises the need for seeking a more uniform and adequate standard of living and purchasing power everywhere, if every part is to live happily with every other part."

' REVOLT AGAINST PRESIDENT "

NEW INDEPENDENCE OF CONGRESS

WALL STREET REACTION TO MESSAGE

(Received November 17, 12.30 a.m)

NEW YORK, November 16

Although Mr Roosevelt's message to Congress'is widely characterised as the mildest and most conciliatory for five years, nevertheless it seemed, in the words of one observer, that "the President, in calling a special session, had fallen into the same error as Louis XVI, who, in an effort to cure his financial troubles, found himself with a revolution on his hands."

One Senator dubbed the Congressional reaction as "a revolt of the middle classes. Congress is possessed by a new independence and places business aid ahead of Mr Roosevelt's programme. It is apparently wholly imbued with the needs of the middle class, as typified by the small businessman, and is prepared to sacrifice all else on his behalf."

Wall Street's reaction to the message, which was published after the morning gains in prices, was a five points loss in the leading issues. Wall Street had hoped against hope that Mr Roosevelt would abandon the continuation of his New Deal programme, and promise more drastic tax cuts.

The announcement of a drop in steel production to the lowest level for two years, almost simultaneously with the message, also did not help the market's mood. The financial editor of the "New York Times'" says: "Altogether, it is not encouraging to big business, which needs encouragement."

Press comment throughout the country generally reflects the political affiliation of the particular newspaper, although here and there a significant attack is launched against the President by journals that supported him for re-election. Notable among these is the "New York Times," which says: "Mr Roosevelt attempted to take credit for the recovery. Yet he now blames the recession on forces outside Government control. But he cannot have it both ways."

BITTER DEBATE BEGUN BY CONGRESS

(Received November 16, 11.55 p.m.)

WASHINGTON, November 16,

Congress assembled and listened to Mr Roosevelt's message. Members immediately opened a bitter political fight which was temporarily cut off when the sitting adjourned until to-morrow.