Grey River Argus SATURDAY, May 25, 1035. FEELING IN U.S.A.

Grey River Argus, 25 May 1935, Page 4

Grey River Argus SATURDAY, May 25, 1035. FEELING IN U.S.A.

The reaction just now manifested by some sections against the Presidential policy in the United States is probably no more than a superficial or temporary one. There certainly remains a solid block of hostility amongst the bigger capitalists, but the trend of publie sentiment is mainly the other way. The difficulties of the Administration have increased rather than lessened. but one of these is that an increased number of people are disposed to go even further than Mr Roosevelt along the line which he has taken. The currency question, in different phases, comes naturally uppermost. Control of it has been a cardinal feature of the measures taken to meet the depression. At the moment the Governmnt is disposed to stabilise in a large degree the existing monetary situation, and the Treasurer has made overtures Io other Governments for an exchange agreement. Britain, how-

ever, does not seem disposed to do anything in the matter, despite repeated complaints on he." behalf that instability in exchange is delaying economic recovery. Her spokesmen talk of doing nothing before the next Presidential election, and at the

same time of suggesting that America shall resume the old policy of international moneylending', which hastened the

slump. On thy other hand, there is a growing advocacy within the United States of a policy of monetary inflation. The idea is to put into fuller and wider circula. lion the means to buy, or, under industrial capitalism, the means to exist so fap as the working class ar e concerned. Inflation is, of course, anathema particularly to the cosmopolitan capitalists, who require fixed currency values if they are to resume taking their universal toll in margins of exchange and interest- Tt is only on the debts of others that these money monopolists thrive. The inflationists made

a strong attempt to gain their end to the extent of at least a couple of billion ejollars through the agency of the ex-soldiers’ Bonus Bill, which the President vetoed, and. by a narrow margin has had his veto upheld by the Senate. The idea of the measure was to print the billions of dollars and issue them to the war veterans. The House of Representatives by a very great majority passed the Bill, despite a Presidential appeal against so doing, and even in the Senate 54 out of 94 voted for it, but a twothirds majority was necessary to override the veto, and it therefore stands. What was calculated to put the President offside with many followers was his

argument to Congress in support of the veto that the printing of Hie extra money would tend to lower the value of the dollar generally without improving prices in. any degree, so that fixed incomes and wages, would suffer. It would also have a bearing on the exchange situation. That more store is to be set by the X.R.A. policy than this measure of inflation is the evident conviction of organised Labour in the United States, because the head of the Labour Federation is calling on the workers to remain solidly supporting the President and his policy. The Leader .al’ the Labour Federation says i will take the X.R.A. two years yet to better the lot of the worker in the way it is desired that i* should, lie doubtless bears in mind the recent enactment of

Congress guaranteeing the workers the right to bargain collectively, and virtually making illegal the company unions which are under the control of the employers. The new law creates a Permanent Labour Relations Board, and the next problem is to form arbitration tribunals to co-operate in bargaining, when the parties are ready to accept such intervention- The X.R.A. policy was never calculated to take immediate effect, and there have been advances and retreats, but the Government has one thing to bear in mind. It is entitled so to adapt reforms in the interest of the masses then changes shall not damage industry. but it dare not sacrifice the fundamental principle of distributive justice in which the X.R.A. was conceived. Massed capital is going to block the way whereever possible, and discretion must be allowed the man at the helm in steering past each obstacle. This veto illustrates the American idea of reposing supreme power in the chief executive, and the success of his administration depends on the con fidence which is reposed in him. He can, of course, be judged finally by results only, but patience is necessary. The veto of the inflationary measure may appear to have prevented a redistribution of purchasing power but at least it shows there is another side to the currency policy of the Administration. It shows that Governmental control is responsible and even conservative control, and that it takes into account not only those without purchasing power, but those with a modest share. The Government does appear to have fixed relief wages lower than expected, but it is entitled to a chance of proving it can remove th e unemployed steadily off relief. The test now is going to be the actual extent to which it succeeds in doing so.