The Southland Times PUBLISHED EVERY MORNING. "Luceo Non Uro." SATURDAY, JANUARY 6, 1934. RECOVERY THROUGH SPENDING

Southland Times, Issue 22215, 6 January 1934, Page 4

The Southland Times PUBLISHED EVERY MORNING. "Luceo Non Uro." SATURDAY, JANUARY 6, 1934. RECOVERY THROUGH SPENDING

Since he came into office and brought into being the National Industrial Recovery Act President Roosevelt has given the world some severe shocks. He shocked several of his lieutenants so much that they fell out on the march towards the goal of prosperity. And now he has loosed another thunderbolt in the shape of a borrowing of billions in ordpr that his recovery plan shall not die for want of nourishment. It can never be said of Mr Roosevelt that he lacks the courage of his convictions. In spite of the opposition to his inflationist policy from some of his advisers he went ahead boldly determined to give his managed currency experiment a full trial. Equally determined is he to show that spending is the way to reestablish prosperity. The figures

he quoted to Congress—the borrowing, for instance, of 10,000,000,000 dollars within the next six months—are staggering to New Zealanders to whom a £4,000,000 deficit seems colossal; but the President stated that he was confident that by 1936 the Government would be able to pay its way. Though some economists and financiers may strongly disapprove of Mr Roosevelt’s measures there is no doubt that public opinion is behind him. Nor is this to be wondered at. He assumed office when the nation was in the grip of fear, distrust, financial chaos and unemployment, when it seemed that nothing could save the country from social and economic disaster. So rapidly did he rally the broken forces, so far-reaching and constructive were his recovery proposals, that the people felt that they had found in him the superman they were so long and so eagerly awaiting. Courageously he took the initiative and indulged in experiments. Though entrusted with almost dictatorial powers he took the people into his confidence in all that he did and thereby gained a still fuller measure of support. Doubts and differences on the part of some leaders in thought there had to be, but opposition did not discourage or divert the President from his purpose, nor did attacks on his policy shake the faith of the people. Congress might well stand aghast at the magnitude of the loans which it will be asked to approve, but there is little doubt that the representatives of the people will reflect popular opinion by unreservedly endorsing the programme outlined by the President. Though the N.R.A. may not have functioned as successfully as its sponsors hoped, it has certainly effected considerable improvement in farm prices, in the volume of business and in the unemployment situation, and the President’s prediction of the attainment of selfsufficiency by 1936 may prove sound. If it be true that fortune favours the brave he should assuredly meet with success; if his daring experiments fail, it will go down to history as a magnificent failure.