xt7wwp9t2q46_88 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/mets.xml https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61.dao.xml American Liberty League 37 linear feet archival material English University of Kentucky This digital resource may be freely searched and displayed.  Permission must be received for subsequent distribution in print or electronically.  Physical rights are retained by the owning repository.  Copyright is retained in accordance with U. S. copyright laws.  For information about permissions to reproduce or publish, contact the Special Collections Research Center. Jouett Shouse Collection (American Liberty League Pamphlets), No. 91 "Professors And The New Deal: A Compendium of Quotations Demonstrating That a Great Majority of the Nation's Educators Believe in Sound Principles of Economics and Constitutional Theories of Government," January 20, 1936 text No. 91 "Professors And The New Deal: A Compendium of Quotations Demonstrating That a Great Majority of the Nation's Educators Believe in Sound Principles of Economics and Constitutional Theories of Government," January 20, 1936 2013 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61/59m61_91/Am_Lib_Leag_91_001/Am_Lib_Leag_91_001.pdf section false xt7wwp9t2q46_88 xt7wwp9t2q46 l 1
Pamphlets Avaulable `
. * . a * at
Copies of the followmg pamphletsand I
other League literature may be obtained {
upon application to the League’s national =  
headquarters : 2
Statement of Principles and Purposes  
American Liberty League-Its Platform `    
Th; Bonus
n ation
The Thirty Hour Week Bill I ‘  
The Holding Company Bill 1    
Price Control
The Labor Relations Bill
The Farmers’ Home Bill i
The TVA Amendments
The Supreme Court and the New Deal
The Revised AAA Amendments . * * *
The President’s Tax Program
Expanding Bureaucracy
Lawmaking by Exec.utive Order
New Deal Laws in Federal Courts
Consumers and the AAA
Dangerous Experimentation
%;:0Iji{0I1Iii<2i ·l.;laHI1iHg—MiSt&k€H But Not New A Compgndium of Quotations Dem,
or e ie
The AAA and Our Form of Government Orxstrating That a Great Majority
Alternatives to the American Form of Govern- . , i
mem of the Nat1on s Educators Be»
%h};1i>§§anég§;€Bongress lieve in Sound Principles of
The National Labor Relations Act-Summary Eggngmigg and Cgnsti,
of Conclusions from report of the National _ _
Lawyers Committee tut10nal TIICOYICS 0f
Straws Which Tell G
How to Meet the Issue-Speech by W. E. Borah °V°rnm°nt
The American Bar-The Trustee of American
Institutions-Speech by Albert C. Ritchie _
"Breathing Spells"-Speech by Jouett Shouse
The Duty of the Lawyer in the Present Crisis-
· Speech by James M. Beck
The Constitution and the Supreme Court-
Speech by Borden Barr
The Economic Necessity in the Southern States AE   C4
for a Return to the Constitution-Speech by V   4e
Forney Johnston ;~· 
Our Growing National Debt and Inflation- E     ¤J
Speech by Dr. E. W. Kemmerer  V-zi et c?
Inflation Is Bad Business-Speech by Dr. Neil 4*;- tv
Carothers ` Y L
The Real Signiiicance of the Constitutional Is-
sue-Speech by R. E. Desvernine
Arousing Class Prejudices-Speech by Jouett
· Shouse
The Fallacies and Dangers of the Townsend
Plan-Speech by Dr. W. E. Spahr
XVhat of 1936?—S1peeéh by Jgmeg P. EI/'a)rba;Bg
mericanism at t e rossroa s- eec .
E_ Dgsvemme · p y AMERICAN LIBERTY LEAGUE
The Constitution and the New Deal-Speech by National Heaaaaaweys
A James M. Carson - ‘
The American Constitution-Whose Heritage? NATIONAL PRESS BUILDING
-Speech by Frederick H. Stinchfleld WASHINGTON, D_ C_
ir
AMERICAN LIBERTY LEAGUE * *
NATIONAL PRESS BUILDING ‘
WASHINGTON, D. C.  
Document N0. QI
January, 1936

 Professors and the New Deal y The C°nSt1t“¤°¤
Many warnings have been sounded against e
* encroachment upon fundamental principles of
the Constitution.
How do the professors stand on New Deal President Robert C. Clothier of Rutgers Uni-
policies? versity at the opening convocation S t b
_ _ _ _ _ , ep em er
Despite the eermectierl ef certain of their 21,. 193o, told students that their first responsi-
number with the administration "brain trust," hlhty was the defense ef the Comtitution
many sceres ef them have voiced criticism, ‘ against encroachment or usurpation. He said:
Herewith are quotations from a considerable HFOYCGS have been unleashed Wh_ h th
number of professors who have expressed views integrity of our American Constitutign. II1i3€.·itt(;i:>Ii2ri1cl Sal ·
2, Centralization of power tends toward mOSriiGhgr;?;§S1; allowing tc; S1lP_1f*`0¤€i its hands the
tyranny, UI th l_t_0SS€SS10n 0 C1V1lZat10]], libey{;y_
. . . . 1, ·
31 The present regime typifies coerclon as trend is ilolitilaidcgutdgfazir atiiiii €tiii;Itl;tiii·ihi;;31dVi¢hi}§}ti
algalnsfl Voluntary C()0p€]·g,tiOn_ Spells Chaos if p€I`SlSt€Cl lh. The depressing expe-
4. Visionary schemes launched in the name A HBHCGS ef ih? last few YGMS have made cowards
_ f _ 1 _ H d t_ t of the maiority of the people, so they turn for
pb eeenofmc p anning are crue y GGG}? 1VB 0 Solalge and protection to an ultimate authority
e peop e. O _ _ egimentation grows apace, as ridicule and sus-
5. Control of industry under the NRA was iicglg *‘§’n§€?-iP€S‘i L;P°¤h1I:1d1V1d¤?liSm- The pioneers
.   . e aesanote dth d
based on false QCODOIIIIC theories. l method of mortgaging the futurgmfgr tocilayglso lil;
6. Emphasis on reform has lnlpeded re- uries with the assurance that a benign government ·
eOVeI·y_ Kogild care for them _in future days, and so they
7. Regimentation of agriculture under the gitIfreiliggg€‘iD°;§1;§§1lt}°?11Ytand €°0¤0mi<>&Uy·
AAA has caused a new set of difficulties and would find it difhcult ltgmdisgovleercuggy tgiieiie they
maladjustments, where one may escape the multitudinous tentacles
St The pgoplg Of the Enum nation are being A of autgcracéy. They would discover the people have
taxed to provide cheaper el€CtI`lClty lOI' those in tllilolsienwfililg dglgdhdpegliical rights and Obligations to
the Tennesseellfalley area.- _ ‘ h“S¤ it Comes about that the present hope is net
9. Tax policies are in violation of the Pres1— ihag $8 PGOPIE W111 _0V€‘Y'thY0W the autoerats but
dent’s asserted principle o·f producing ample haze d1§n;l§£°r“tS.W11l defeat ’¤h€mS€·lVoS as they
. . . . . ce history began."
revenue without discouraging private enterprise. _
1()_ Failure to balanee the budget Offeye et l)1'€S1Cl€1'1t•Gl€1]I1 Frank of the University of
menacing threat of disastrous inflation. WISCIOUSIUZ 11"1 addressinga forum en enryent
11: Banking policies are designed to give prob ems m New Yeti; CNY: I`€J€Ct€d the View
political control of a despotic character and to my the COHSl?1tUt10H 1S too antiquated to egpe
facilitate the absorption of Treasury deficits. mib pllgsem PYOb`l€m$ and held it to be the
12. ·Monetary changes have created a dis- On Y Safeguard agalnm tY1"&=¤I1Y- He said:
trust in the Ctovernment’s good faith and in- :1Tl£e_ centralization of power has invariably
iected unsound elements into the currency in B m *¤Ym¤¤Y- Even when the centralizatjen
Structure. as been effected with democratic consent and
2 3

 designed to serve emergency ends, eentrallzed p0We1‘ through its spokesmen venomously attacked im-
has moved relentlessly 1n_ the direction of self- partial and honest critics of their policies even while
perpetuation. And, once intrenehed, With a pre- the policies themselves were being abandoned in
sumption of permanence, centralized power has humiliation and rout.
grown domineering. It has become less rather than "And finally, these policies have led to cruel de-
more concerned witgi the common good. it (has be- ception of the people. It has encouraged millions
00me the vretrm 0 whrm and €¥1»p1'1<¤€· H it I`€· to embrace the absurd doctrines that government
volt of tile g0Ve1“¤ed has p¤`0V€d the Only reed te can create and distribute wealth and comfort with-
Pmgress. out_ work, that all economic hardship is due to ex-
ploitation and unjust distribution. And we see the
C<>e1‘¤i<>¤ vS· V<>l¤¤t¤fiSm · f€é’Fc‘i%`é3“§$$ctiicliciiféoi’$'i3"’ti2S’riQf’2?”o’?ii§ifL‘i
. . . and dangerous demavo ues."
Thomas Nixon Carver, Professor of Pol1t1cal ° g
Economy, emeritus, Harvard University, de- Dean Wallace B. Donham of the Graduate
scribed present trende in MA Report gn the ' School iof Business Administration, Harvard
PrObl€.m > in May, 1935_ Professor alumni of the school on Jime 16, 1934, asserted
Carver said: that the only practical kind of national plan-
“Th€ alternative to 3 Voluntary System is 3 i ldlllg fOI’ A§1q€I`1C€.h WELS it)I1€   Erllpillaslzcd
coercive system. There is no middle ground. A WCOVBYY re QT an re Orm- G Saul-
mixture of the two can not be_ permanent. The "The President started with a sound concept of
extension of government authority, so long as it planning, but both the job and the organization are
enlarges thi? field of V0iUHl·9#Y.V $}gI"€€m€Hl$ WHORE SO large that much of what actually goes on in
free citizens, by suppresslng all violence and fraud Washington is better described as a combination of
and balancing the labor market, insures the per- social theories, wishful thinking and good resolu-
manency of the voluntary system. Any further ex- tions little tempered by hard-headed thinking."
tension of government authority prevents the ex- _ _ _
pansion of industry, throws the labor market out of Dean Dollllam lll all artlolo OD ‘iR€g1m€Ht&-
t3Lii;°"ci1§§$ciii?ict;“;i‘i?§§{t‘c€£“’oX%t`ti iEE°mT31?-Z '°l°“ °‘° Muddlmg Th"°“gh" in the A""“lS Of
and more repressiveilegislation, causing still more me Amcmcian Academy Of  Olztwal and Social
unemployment, until the whole market economy Scwncer Nevember, 1934, said:
breaks down. The next stage is coercive regimen- “The Government has preserved ability to act
tation ton a milltarlstie basls, Wltll commissariats but has lost all general coordination. Specific pro;
tm Ya l0¤S-_ _ _ grams are based on conflicting social and economic
mg!}/igluntarism is the goal of all liberal move- inenrjiee MuCt1i];iS1(i{_§)n?t`;-irithcut Yierence to Bitner
···- ogica or prac ica imi a ions on uman capacities
"Nowadays, l10WeVe1‘, some of those who we 3d· and accomplrshments. Emotions control. Wishful
vocatmg a reversion to the older and more brutal thinking and good_ resolutions spawn feverish ac-
rnetlled of auth01'1ty are trylllg to steal the W01‘re—oapital1et joined in a book entitled The Economics of the
system would by this time have done for the welfare Recovery P,.Og,.a,m/ published in 1934 In the
of the masses. ’ '
aMOr€OVBr, if planning is to be undertaken OD book tliese_ professors asserted that the New
a large scale within the framework of present so- A Deal, eepeerally l?h€ mOll€t?»l`Y PI`Ogl`9»m and the
ciety, very difficult questions of organization will , NRA plans for an artificial control of hours,
arise, abryut wlggh peopgle wiltl differ acipordingito th? wages and other factors of industry, Was hold-
egree o con ence t ey ave in t e wor ing o · , - · ·
the political institutions of their countries, but which _ mg ébeck Ilecovely . rather than Sllmulellhg lt'
must be more satisfactorily settled than they now T e Seven eehlrlbulere to the Volume Welle
are. _ Seymour E. Harris, Assistant Professor of Eco-
"Faili¤g thle. planned economy, however oorreot nornics as well as Professor of International
theereeeellr le deelee may be ¤S m  lllsllead of through Gevemmeht
opportunities for reform never before possessed by aelilelh · · . ,
a President he has chosen for personal and party  l“°l"SS?l” Hallls eelle the Sl'eVel`ll.mellllS lllelley
interests to play the usual game of putrid party pelley ,e llllleelll of lllll}llllell> lllllllellllly toward
Oliticsjr capital, and tinkering with the monetary mach1ne.’
p - The net result he says has been the undermining
President Ethelbgyt ]j_ Warfield Of Wj]SOn gf confidencedin the_ business world. If actual in-
Celleee l’e¤¤erlree1e» le eeererlee ee we- egelgnreilelliedie(;»l;ei~ierieliri;’1rr§deii(iir{eaigr aiiritllir
bel` 15, 1935r Plzeelllellh Beeeevelhle lehhell to gards the administration’s goldlbuying moves as
clergymen regarding conditions in their com- having failed to accomplish its objectives-controh
munjtigg, Said; lirrglthe value of gold. _
MT _ _ k_ _ An early stabilization and a return to gold
_ hlehoommlgllltqy, lgell $1111 Countyi Pelillleylvemer may reestablish confidence} Professor Harris states,
1S the eart_o t 9 _ Um el` alld Va ley, erffultful adding that ‘even a moderate devaluation of 25 to
?¤d_ pr0dU0t1Ve_S1e1¢t10¤ populated by Sebell God- 33 per cent might be advisable if it can be demon-
€tit“i§"t°§r§l°£tg §el3°’°é°VZe‘ within are teeeee er §§,‘Q§‘,§°‘*;§l,,,f,§‘,i‘,l ;,“§,{‘€,gl€‘“l“i¥l°¤ tf feettlel it an
these United States, e people S0 l11d¤St1`l0¤S end the greatest volume lei elihplhrymeiilit ii? thleeigrlliteld
so accustomed to make a moderate but adequate States]
living. ‘ =•= >•= =¢= =•=
**** MA `lh'h' ··
"It now labors under a misgoverument not very stimuli1}e,’r?iyleaPilefe(eso1lSSl:Ili€ti1(ii5pe1liell·€ ‘le)arileldlii>celil~i
much less than that which drove the ancestors of of the work of depressions undone anil adds to an
this population from their native lands. Nothing undigested remnant of maladjustment new mal-
€§,`§ldef`2iY§ rl?§;$’3e‘§`3E$rE§ef°f§Et2£iri§l§l2 fr`§W°f§’e“‘l` t"ll‘1Sl‘“"’“h°l ll; °“’” “’l‘l°l° has *0 be liquidated
the NRA, the AAA, the depreciatiorrof the dollar, alheagln us ma Gnmg busmess Wllll a mm
.1. . and govelhnment throgighdalws iwhiizih have with- ". . . Professor Chamberlin c.ites objections to the
rrargn rim this geope t e rig to sed government methods of _the Government in artificially increas-
so _ ear o e merican peop e, an_ t_ e anxiety ing money incomes of farmers and industrial work-
which possesses them lest the Constitution of the ers. He insists that too much stress is put b
United States should be radically altered to the the•Government on spending by the consumer ale
disadvantage of the people and of their just govern- against expenditures arising out of investments.
6 7

 “, , , Professor Mason argues that the recovery bia University, in an address before the same
egg r;)1¤;;·§;<;¤;;t?OIl¤gs Siggirt;‘g’3*`%n;l;iu;i;?§“gg’c“ ‘ association at an earlier meeting questioned the
at " _` • •   •
trees, but contends that elimination of unfair com- ?°““d“€SS Of tele Pubhc W0I`kS P0l“2Y ef Prim'
petition is not likely to' constitute an important mg the Pump- _Ult1metely the P0llC}’ could he
step toward recovery.’ Heinsists that certain code successful, he Said, only So far Bis private busi-
provisions constitutea distinct menace, not only to ness Wes thereby induced to increase its cwn
recovery but to reform. _ activity Ho Sold.
"Professor Brown . . . says, ‘In general lt seems “ ’ _ _ ‘ _
likely that the sharing of work tends mildly toward _ BW? the _1'1S1¤g Public debt and governmental
an increase in costs and to that extent may be an ; {¤lli1l>10¤, Wh1ch_ the process of pump priming almost
impediment to reeOvery_   eg,n¤()t’ however, for 1D€V1lJ&bly C9»I`I'l€S Wlth Il}, 3,I’€·pI`€C1S€ly l3l1€ I&CbOI`S
ther reason be eondernnedl _ _ _ bestcalculated to destroy private confidence and
"‘Public works provide no panacea for recovery. t0“d1S0§>¤F9l8e DI‘1Vete busrness recovery.
Prgperly carried Out in   fglghign   may i     3dIIIIDIStI°8»bIOI1 glV€S SOIIIQ ESSUYRHCB
at once provide much-needed relief, a measure of that it will keel? the cprrency substantially stable
results valuable in themselves and a stimulus to OVBY 9» time, that lt Wlll really endeavor to keep
an economic mechanism ripe {cr receyery_ At the the total budget balanced, except insofar as genuine
ether extreme, they may be merely e, ncllrjcel feet- relief needs necessitate further borrowing, I do not
ball and a drain upon harassed treasuries.’ " $96 haw; Sllbslifmliialb 811d SUSlii1I1€}€Y&l capital; It has no price policy other than opportunism. In
1Sm- we are _0 P1‘0SPe1‘ as 8 113 10¤»_W€ mus theory, havrng burned its fingers and those of the
restore the requisites of a sohnd econom1c system. country 1t is against price fixing—save ossibl i
Our choice is between fighting tuberculosis in its the fielgis cf wasting natural rooourooo oid gr Ii
l stages and fighting it after hemorrhages begin. l' ‘ ¤ na um
ear _y _ rnonopo ies. But it doesn t know how to undo what
It is a·tch01;(Er;2‘be1ir‘Ween tlre New goal andnsound it has done. Its vacillation on price policy alone 1
prosperi y. 1S ooseve versus ecovery. riluringtrecent months would be sufiicient to con-
emn 1 .
. . . "It has no labor policy other than opportunism.
Industr 18*1 P¤l1¤1¢S Theie halre been as many labor policies in NRA
Tho thoooioo upon which tho NRA Woo boood  leger; ave been labor crises, and their number
were questioned from the start by_econom1sts “On net balance, NRA probably questions the
of reoogniaed standing. The administration s contnbutlon to the Pres1dent’s_‘rnore abundant my
program Vylth respect to unemployment I·€l1ef’ of B, S€I`1§S of pI'OV1SlOI1S llmltlllg Il13.Cl1lD€ llOl1I'S
including work 'relief and public works, also ggglttiggliiuggufggirdbllgvgagrpllal mY°Slm€¤l in
met Wlth Cmtlclsm from thOS€ COmP€l»€Hl? to can increase the real incomeolofeliiisl llilgdglgedtlie
Judge the permanent effect. · O ‘comforts and_conveniences of life,’ as Adam Smith
Garfield V. Cox, Professor of Finance, Uni- I used *50 term 1*5, bylrsugh rneihods.
versity of Chicago, at the annual meeting of the ( · -
. . . . ‘It ‘ ·
romengm Egonomie Asseaanrm, New York the .§€u§i”"mZ1€i$§§?cSb€ll$£l Ztl§i§a}§“$i”ih2bS§5EE‘Z
ity, econ] er 26, 1935, said: interest have been essentially tossed into the dis-
“_The four months_drop in industrial production card',)
Lvgoghegolgoxggdooh; lrnrtrrriuogolnc rgolrlge NRtA1r;13§ C The NRA Wes criticized in a report of a
. pses o _ · · ·
and 1907. ’Ijhe advance which has followed the n§r1I%Ig11%§1;§)og£ C§1umbi»abUn1V€rS1ty On ECO"
Schechter decision against NRA is the broadest and f . ruc Km, 6 ruafy 4: 1934· ln
best sustained rise of recovery to date." I`? efrmg tot control of PI`0dU0l310I1 the Commis-
_ _ · sions re or sal I
Professor Cox said that the continued de- ,,ThI; concomitant io , th t d lb
· . _, _ usion a ' t l' -
§?Ilg‘_;n(§O3;r1l;Il;Sgn§S§ YPOD Pm8rg€n§Yd§p€nglng itation of output because it ragesepriiii; ehdlgs
n 1S oa unique an istur mg toward recovery is a still more dangerous fallacy,
feature of the economic recovery. It is more dangerous because the limitation of out-
J. W. Angell, Professor of Economics, Colum- Put Of an mdlvlduel commodity may be for the
3 9

 advantage of its producers if they can thereby put the cart before the horse. Raising the prices
control its price. either of labor or of goods is not the way to get
“The abnormal situation of agriculture may a larger volume purchased. Instead the NRA should
justify special and temporary measures along such have sought the maximum enlargement of spending
lines, but it should be fully recognized that they with the minimum increase in costs and prices,
involve a tax on the rest of the community, and thus securing with the augmented expenditure the
above all that an all-round application of this greatest gain in the number of units of labor and
policy would make for general impoverishment and goods taken off the market. Thus increase in spend-
would solve the problem of ‘poverty in the midst ing could have been sought by (1) the removal of
of plenty’ by removing the plenty." Ee detetrrents to the ifrile and pgompt vitilgation of
. e exis in mone s -
The professors signing the report were: Rob- tary exparigsion. }'l`li)e NI2.¢(iOuaIecrd7m;?lished)nIel(ilIi§r
ert   Maclver, Barnard College; James kW. o1°“ig1t_1}oSo ohiiotivos-_ di t d b th_ , , _ th t
Angel, Columbia University; Joseph W. Bar er, e euue umu ul ca e Y IS resume is e
Columbia University; John M. Clark, Colum- ’ 21;,26,1,211%;%, °,€&lSh€dg;§i,°;;$;?ri1i)d gilcgvggx go Vgggg
bia University; Arthur D. Gayer, Barnard Col- much assurance? r y
lege; Alvin H. Hansen, University of Minne-
sota; Alvin Johnson, New School for Socia Re- ·
search; Wesley C. Mitchell, Columbia Univer- Ceetrel ef Agrlculturc
sity; Harlow S. Person, Taylor Society; Josef Many professors have disagreed from the be-
A. Schumpeter, Harvard University; and George ginning with the theory of the regimentation of
H. Soule, National Bureau of Economic Re- agriculture under the AAA which' was recently
search. outlawed as to its production control activities
Sumner H. Slichter, Professor of Business by the Supreme Court.
Economics at the Graduate School of Business James E. Boyle, Professor of Rural Eco-
Administration, Harvard University, in a book nomics, Cornell University, in a speech at the i
entitled Toward Stability, published in 1934, 28th annual convention of the International
asserted that the NRA had impeded recovery Association of Milk Dealers, St. Louis, on Octo- A
by "fostering monopoly and thus delaying the ber 19, 1935, said: ¤
transmission of Savings produced by techno" “The AAA philosophy restriction of production
logical changes to consumers in the form of may be sugar-coated with all sorts of beautiful and
lower prices and thus preventing purchasing high sounding names, But the fact remains that I
power from growing as fast as productive ;m;;r;¤Ogs1y.ag¢ e ufeugereue thing- Cle¤1'b’» *1
, ,, gamza ion o scarcity, whether imposed
0&D9·01tY· _ by processing taxes, contracts, licenses, marketing
Walter E. Spahr, Professor of EoOr10m1CS, agreements, Federal orders or otherwise, would
New York University, in an address before the Simply make tho donforssion Worse. In fact, it would
Women’s National Republican Club, New York meke ulie ulepreeiieu Pemeneuh for recovery can .
City, OH April 5, 1935, Said: come on y t roug aku ixpgansion of production.
"All the evidence I have seen regarding the f‘One step leads to another, as Secretary Wallace
wisdom of attempting to induce business recovery said. Every crop controlled by the AAA has upset  
and solve the unemployment problem by engaging Somo other crop, leading to the control of that crop,
p in a program of public construction would seem to There is no stopping place short of complete Social- —
show that the program is a failure and constitutes ism. We are getting our Socialism by installments,
a real danger to recovery." and under some other name."
Severe criticisms of NRA policies are con- Kat`]   Compton, President of the American
tained in publications of the Brookings Insti- A Association for the Advancement of Science,
tution. The economists who collaborated in President of the Massachusetts Institute of
books on the NRA published by this research Technology and Chairman of the Science Ad-
organization include Leverett S. Lyon, Paul T. visory Board appointed by President Roosevelt
Homan, Lewis L. Lorwin, George Terborgh, to_ma_ke a two—year study of the Government’s .
Charles L. Dearing and Leon C. Marshall. scientific bureaus, was critical of AAA policies,
· In the concluding chapter of the Brookings in a speech before the association at the annual
Institution book on The National Recovery Ad- meeting in St. Louis, December 30, 1935.
rninistration, an Analysis and an Appraisal, the , He declared that attempts to protect agricul- I
following statement is made; t111`€ by 01`0p _I‘GSt1‘iGtion Were only an invitation Y
qu trying to mise the mal purchasing power Of to other natlone to mvade our markets, and  
the nation by boosting costs and prices the NRA that the proueuulon of mduSl?I`Y by tariff, sub- l
10 11

 "We may raise prices by making goods scarce or
° ` d h l`k d th t` t ‘ ‘ -
sldles an t e 1 9 spLlI`I‘€ O 61* I18. 10118   D€W by making money abundant. The first way 1S fol
technical triumph while giving our own indus- lowed when cotton fields are plowed up, wheat
tries an unjustified and false sense _of security. ggtgosgglégéttffuslggf iggitégitggigotgoogtcoicghgsgtltotg
He oliered a_PI`of§I`hm based oh taking full hd" not to produce. All of these and like measures
V3.1'1l23.g€ of SC1€I1‘i»1flC and l3€Ol'1I11C&l d€V€l0pII1(-3I1tS reduce the national income, for that income con-
of new and improved products and processes. sists olfl thesel gory goods, hzead frogi whiat. iogrk ‘
· _ rom ogs, co es rom co on, an so n. ur
. G' WI Dyoh Profcssordpf E§3nOm1CS’ uli/imdels income is our ‘dai1y bread’—our ‘bread and butter’—
¥gg5Uh1%oI`S1tY¤ m tt rh to h ross on ay i r andd we casnnot fget more of this 1ie_aLincome_by
, Sal I l pro ucing ess o the e ements of w ic it consists.
_ _ - ‘Such a New Deal is a raw deal, however good
"The_ unusual conditions created by the present ll the intentions and however it may relieve certain
d€Pl`€SSl0¤ made ll? €9·SY for mdl€&lS» Qllacks {md \ classes at the expense of other classes."
J superficial ignorant reformers to_cap1talize the sup- V
posed hopeless farm mortgage indebtedness- The ` The Brookings Institution in several books
I thooty who hroouoost throughout tho uuttou that has criticized various phases of operations un-
the farmer was in a desperate, helpless, hopeless d th AAA Th . t t 1. t -
condition, that this condition was brought about by er 8 _ ·_ 9 ooohomls S to {mg Pat m
conditions beyond the farmers control. As a result these studies include Edwin G. Nourse, Joseph I
of the brilliant analysis of the situation, the con- S_ Dgvjg, Harold B_ Rgwg, John D_ Black, D_ ,
clusion was reached that the American system of A. Fi»oZGoroIld and Hom.}, I. Riohards
freedom in agriculture had proven a miserable fail- I th B k. I .t tl. b k Wh
ure and must be repudiated, that the farmers of the h B hoo mgs nstl u lon OO PH . eat
nation must be regimented and placed under and the AAA, Joseph Stancllffe Davis, who 1S l
centralized oontrolgrorn Washington viiitlé Mr- Wal- associated with the Food Research Institute of .
lace from Iowa as ictator. As a resu t ongress at · · · .
once repudiated constitutional freedom for the Stohtotu Uh“’o"S‘tY> Sa“1d'
farmers and gave the dictator full power and "Control of wheat production through voluntary
authority to regiment American farmers and direct contracts, . . . has not yet been a demonstrated
their lives and activities as he pleased. success. fOne goal of the wheat program——the elim-
,, ,,. * ination o our carry-over surplus—has virtually been
ur-The   Dictator is not Satisfied   the Hhtailned; but_to l]h1S I'€Sl.l.llZ the €Xp€DSlV€ Bind EX-
powor that has been given him. Hs Wants more tremely laborious procedure has contributed very
· little. Had nature chosen to smile instead of to
power. Dictators always want more power. He f - -
- - · rown in 1933 and 1934, I do not believe that the
has ilcceegod m regtmentmg thohtmlmeh NOW he wheat adjustment efforts would have led to impor
is as ing ongress to give im t e power to regi- - - ."
ment and bring under his control and direction the tant taduatiaes m the 1935 c`&Hvy`0VBr fran what It
mqnufactmers Of farm mductss, was on July 1, 1933. More probably, shrinkage of
‘ p ‘ exporiis wouéd ha\{eAlargely or wholly offset crop
_ Two professors whose names have been iden- g:,"£‘1hI§$§tiog;.sE,};gd_»»AA’ and the °mTy`°V€r mlght o
tifled with the adm1n1stration’s monetary