SPENDING POLICY

Poverty Bay Herald, Volume LXIII, Issue 19127, 23 September 1936, Page 15

SPENDING POLICY

A VIGOROUS ATTACK

MOTOR CHIEF'S WARNING

'CLOUDY OUTLOOK"

DETROIT, Aug. 10

A vigorous attack on -Mr. 'Roose veil's campaign of spending to en courage recovery is made by the presi dent of General Motors Corporation Mr. Alfred Sloan, inn., in the com

jinny's report, for the second quarter of lfl:ifi. This is, he says, the most unsound factor in tlie present industrial situation in the United Stales.

"It is tin entirely artificial and highly undesirable influence," he continues. ''lt must be apparent to any thinking individual that, sooner or later tins issue must lie faced.

"It is impossible logo on indefinitely, ti fact unfortunately far too easily lost sight of in the recovery process." Constructive enterprise, sponsored by private initiative, Mr. Sloan declares, must be substituted for "boondoggling"—:i term widely used in the United States to describe unorthodox relief projects. These, he asserts, are actuated by political considerations and paid for not only by tho taxpayer, but by every individual consuming goods and using services. Until something is done to check this tendency .Mr. Sloan holds that, in spite of the widespread optimism of the moment, "the broader economic outlook will be distinctly cloudy." General Motors, he adds, feels that, as matters stand now, caution is desirable in dealing with any plans for the .future involving important commitments.

Among the favourable factors in the present situation he mentions widespread buying to replace material worn out during the depression. In Washington yesterday the Department of Commerce pointed out in a report on world economic conditions thai substantial progress Inwards recovery had been made, but added: "future business prospects are in a degree conditioned on the possibility of bringing expenditure more in line with receipts, and thus eliminating, partially at least, the uncertainties prevailing concerning future taxation and oilier budgetary problems."