lf) . ·.,` . r ‘ " '   i
      ` ( . February 24, 1932 i T H E N E W R E P U B L I C` ‘ 32 r l
  .r_A Vi _   _ r make a profitin anticipation of the coming expan- If the expected expansion of currency and credit ‘
be ‘ T1 ‘v_·`‘ t , S10n· VN0 doubt bHnliS W€1'€ m0Y€ willing to ac- brings about real recovery and if the expansion is
will. » j ’`‘l ,~   commodate them with loans for speculative pur- then stopped before "unwholesome inflation" takes
cry V.   ii   _ poses, for the same reason. It does not follow place, may we expect permanent prosperity?
out .   l that the advance will continue indefinitely, or that By no means. Vlle shall certainly continue to
V . F   i it Was 1'10f overdone. i · » . have depressions as long as we do not plan and
me no     PVhat are the jirst efects to be anticipated from control incomes, prices and production so that we
rn_`   _V   i the Wéw t{1€¢15W€? _ continually distribute all that we produce. Vllhole-
like ‘ [ V   (1) Rise in the price of government bonds, sale manipulation of credit and capital markets in
m_V `   as  - and hence of other bonds as well. (2) Easier an unplanned and individualistic economy is too V i
ree   · e*‘ ’ loaning policy by the banks, and hence, probably, crude an instrument with which to maintain
i i ji - rises in the stock market, the wheat pit, the economic balance.
ny , e   cotton exchange and othe_r speculative markets.
in   or (3) Fewer bank failures and less hoarding. In so . . .
se; I   far as stagnation has been due to lack of speculative Fllnglng Away ZH EHIPIYC
as .   ·   · e conhdence, the situation will be alleviated. l _ _ T _
W_,__ _ V   Will these stimulating elfects be transitory? Or A MONG its mote lmpottent but less sgteeshle _
ire . - e‘ e shall we progress steadily out of depression? e _ tasks durme the Ptesent session, Congress _
eye _` i · . They will be transitoryfunless the anticipations will he·Ve tv take eogmzenee ot the tepott vt Ptesk i
ef   `i‘p · of speculators are proved sound by actual increases dent Qoollet s Commlttee on the Conse*`Ve_tlon and
Vc . .; in production, employment and trade. Before We Administration-of the Public Domain. This report
CS e  . begin to reioiee too loudly We Should Wait to see treats the question ofwhat shall be done with almost `
sir .  . what happens to these figures. two hundred million acres of unreserved lpubhc V
er_  j r Will the bill help to stimulate production, em- lehtlS> how suhetmg ttom Yeats ot ¤v¤rgr¤Z¤¤e bY
iss _  __ plgyyngnt and trade? ._ millions of cattle aend sheep, and almost completely
in -  _' There is doubt about that. It can do so only by neglected bY the bmteo States goVetnment· _
_€_ i · making it essier for business men and employers The Garfield Commission advises that this vast
gg Z  to borrow money and raise new capital for produc- emPn“e otfumost one·tenth ot out total land steh
Ve _ tive uses. If there are a large number of enter- shoultb Wlth e few mlnot eXeePt'_ons» be glveni to (
up ;- _ prisers Waiting en pur up neil, buildings, buy new the Vllestern states., either to administer or prefer-
id " f machinery) cmploy more men and enlarge their ably to sell at public auction to the highest bidders.
lc   — output, who have been held up by lack of credit, _The C¤¤imiSS1¤¤ temPotnnlY eXeePts» for tutthet .
n l this measure will allow them to go ahead. lf there Investigations certain areas teeommended hY the
sd .   i ere noe. prnelueeinn and emplnymenr will not re_ Forest Service for additionito the national forests, ’
v_ _ i _ $9 f vive. Nobody knows certainly whether there are emu also suggests the retention of etees needed fst
id : or not, Or eourse s_ rise in priees starred by national defense, forrnational parks and monuments,
at Va ‘ speculation might induce a temporary increase in End tot ¤merat¤r>* bud tetuges But these wmild .
sr · ei . - production and traelepsinee everyone liltes t0.buy total only a small fraction of the vast area in-
in as   ton a rising market. But such a speculative increase vvived- In esseneei thens the Ptoposel ls to glve the
rtl i Tl in production might quickly wear itself out. public domain to the states (minus the subsurface r
ie if »_   ` i What is the crucial test of the beneyits of credit mlnetels) anu to utge them to seh lt at eu_et'on·
n_ V ji _ expnnsionge - This extraordinary proposal deserves and will re-
·y » l The chief evil done by deflation is not that prices scm the most crmcal s°"utlnY bY Congtess anus It
V .   fall: it is that they fall unevenly. It all prices ls to he_hoPetl» by the Puhhe- _
ii. .. fi fell by the same amount and at the same rate Despite all ¤i>i¤¤Q¤S t0 the 9¤¤¤‘¤¤·y, the pubhc ’
".i.i`  (including interest ratcsiircntsl €tC_), nobody “7Ould ClOIT1Ei.il'1 h3.S 3. THF l'1lgl]€I` fl.lYICtlOH- than to fuI°H1Sh
to i  i j suffer and nobody would benefit. The same logic gmss tot hungtY h"estoek ot tel`tltotY tot hungry
;oX r i'  applics to in{lation_ ln spite of the temporary land-seekers. Experts have long recognized that
is     , ~ stimulus caused by the spectacle of rising prices, fh€S€ great, open, Tolhng ot mountainous )Vestetn
is   » ‘ __,,   no permanent gain can be acbieyctl nnlcss thc grasslands have, and should be made to perform, a
i_ V- °   moycmont corrccts any cxisting lack of balancc continental function in protecting and conserumg
tt ` ‘ X gi.  e among the various prices and incomes, by raising Sf1°€¤m—fl0\V b0fl1__l¤t0 ’fh€ Pacific Ocean and mto
»f °   V some prices more than others. It looks now as the} Mississippi RlV€1‘» nnd in guntthng the rich
if     ‘ if the prices which ought to be raised are not the alluvial farming valleys and the great irrigation
  _-;r-   prices gf bonds and other capital instruments, since reservoirs of the Vllest from being buried under
ri.   i.  ‘ _`__i   ‘ these have fallen less than the prices of wheat, masses of flood—borne sand and gravel swept from
ir.       cotton, etc. Yet expansion of bank credit tends the vast hinterland of mountains and plains. This
-,,  -..·_ g     _ to sustain the very prices which may be in most function, however, can be restored only by rehabili-
  need of further deflation, before anything ap- tating and thenceforth protecting the grass and
yg  t`.‘ _ »r_ itV*~_-   ’l proaching economic health can be restored. We other vegetation, for grass in these \Vestern lands
  may discover that while the Steagall-Glass bill has is primarily important to prevent floods and ero-
iofiilr  ag; f·i-   V prevented panic, it has delayed real recovery. sion, and secondarily important to feed livestock.
   .  ·`·el ='    " . i.... .   . ht, . .   . . i