February 5, 1937
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Transcript of February 5, 1937
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64 The Nation [Vol. 137,
No.
3550
upreme
By
PAUL
Y A N D E R S O N
Washi ng t on Jury
HE
most m portantWashingtonnews of the week
comes, as it often does, from New York . I allude o
the address of D onald R. Richberg, chief counsel for
the Na tiona l Recovery Administration, ‘defining the purposes
an d policies of tha t body. Since SO man y of the daily papers
fumbled the story it may be desirable to sketch some of th e
more-salient points. Richberg,with he official approv alof
Administrator Hugh S. Johnson, told Ameiican ndustry t
probably was acing ts ast chance todemonstrate
its
ca-
paci ty to govern-itself successfully. H e said that-succe ssor
failure-would come in sixty days, and that the outcome would
determine whether the future*managers of industry wil l
be
chosen by stockholdersor he public. H e said hat slackers
could expect no mercy. It has been
a
long ime since Bab-
bittannia listened to uch trong anguage rom uch n
authoritative source, and
I
should like to have seen the col-
lective face
of
the Me rcha nts’ Association
of
N ew Y o rk
as
i t gave ear to the speaker’s beautifully ironic allusion to
he agony of the hard-headed m anager who has stood
on his head successfully all his life, viewing the supreme
achievement of a business entefprise as a reduction in
the
pay roll coupled with an increased output; who has not
felt
the slightest responsibility for maintaining mass purchasing
power; and who is now suddenly asked t o stand on his feet,
and, when no longer looking a t
the
world upside down,
to
observe that employees are
really
customers, and that the
supreme achievement
of
business enterprise m a y be to
pay
out as
much
money as possible n wages wit ho ut pro-
ducing more goods than
th
market will absorb.
W h a t
I
mean,
of
course, is that I should have enjoyed seeing
the faces
of
those whounderstoodwha t he speaker
was
saying. It is reliably repor ted that he managed not o smile
when he told them that their cooperation would be wholly
volun tary . T ha t was qu i te
a
feat , but t was hardly
a
nice
way to treat a good, simple, an d expressive wor ld like “vol-
untary.” T h e cotton textile people learned how “voluntary”
their part
was
to be when the heavy-handed Ge neral Johnson
ot
them ehind closed doors. Und oubte dlyhe cted or
their own good, but some children just will not take castor
oil
unless
their noses ar e held.
IT
* * ? E t
is often and pertinently asked wha t the Unite d States
SupremeCourtwill say about heconstitutionality
of
some of the Rooseveltmeasures. Certainlyhere re at
least hree eactionary oldmen
on
that bench whowould
takeprofound atisfaction n tanding by theirplutocratic
concepts of society if they knew he mob wa s bat teri ng at
the door, and here may be more han hree. T h a t eventu-
alityalreadyhas been seriouslyconsidered here by persons
interested in the success of the new deal. T h e re a re ways of
meeting t.Congresscould pass anact equiring members
of thecourt to retireupon passiag theage of retirement.
Tha t wou ld remove
t w o
of the worst.
It
would also remove
the best, Justice Brandeis, but that cou ld be met by a
pro
vision e nablin g hePresident by executive order oextend
the enur e of designatedJustices who had reached the age
Iimit.
Or
the
size
of thecourtcou ld be increased by la w
to perm it the appointm ent ,of addit ional Justices whose ideas
developed subsequ ent o heyear
1880.
It
has been done.
If this eporter knows anythingabout he emper
of
the
present Administration, it will never permit he whole eco-
nomic stru ctur e of this cou ntr y to be disrupt ed and demoral-
ized because less than a half a dozen dyspeptic o ld men are
determined to uphold prec edents established before the inven-
tion of the telephone. Ashasoften been made lear
on
these pages, I do notrelish theseencroachments of the ex-
ecutive upon the prerogatives,
of
the othe r branches, b ut some-
times
a
condition arises whichmust be dea1t“with. T h e
blame for such bad preceden ts properly rests on those who
produce the conditions.
*
*
*
* ‘ *
R
COGNITION of SovietRussia appa rently has been
hastened by public reaction ohe tep taken y the
R. F. C. when, in substance, it len t
4,000,000
to a govern-
ment whose legal existence
we
refuse oadmit .All signs
indicate hat he oan was a “feeler,” and hat ailure of
publicopinion to manifest any resentment will be followed
by a much arger one possibly
25,000,000
or even
100,-
000,000. T h e f ir st o anwas o enableRussia to buy our
cotton; henextpresumablywill enable her obuyother
Americanroducts,articularly copper. T h e oldmyth
tha t recognition must w ait upo n payment of debts contracted
by the mperialand provisional Russian governments looks
pretty sorry in the light of wh at has happened
to
the debts
owed us by gove rnments which we
do
recogrizc.
It
is some-
what appalling to think of the mischief which one man, such
as Charles Ev ans Hug hes, can d o in the course of a long and
industrious life. It would be interesting to know just how
much n cold dollarswe have lost hroughour ailure to
recognize Russia.
I
. . . a
T has not been mycustom o hold themajority of my
countrymen in extra vaga nt esteem. Indeed, I have never
forgotten heobservation of my enerable ontemporary,
H.
L. Menclren, that they are probably the greatest aggrega-
tion of poItroons andscoundrels ever assembled unde r one
flag. Nevertheless,
I
have been genuinely startled by the
volume of mail I have received fro m N a t i o n readers express-
ing their rank incredulity, that anyone would fail to beat the
government out o his fai r har e of incomeaxes if he
thought he could stayout of jail . T h a t persons in hat
moralstateexist n this cou ntry n large numbers,
I
was
well aware, but I simply cannot imagine how they ever hap-
pened tohear of, much less read, T h eN a t i o n . D o they
pick it up n barb er shops and dentists’ waiting room s?
I n
thatconnect ionpermitme o plead in passing th at I can-
not possibly answer all the etters from persons who we re
impressed-one way
or
another-by my gentle com men ts on
8/9/2019 February 5, 1937
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July 19,
19331
The
Nation
65
- __
theHouse of Mo rgan.
T o the
manywhowere ind,
I
tender my thanksherewith. T o theothers
I
will onlysay
that they wasted their time, because under
no
circumstances
would I be in terested in th e judgm ents or opinions of people
who believe that it is perfect ly al l r ight to chea t if you are
not caught.
H
i * + * *
A R O L D ICKES is rapidl y being lecognized as one of
thes t ronges tcharac ter s n heCabinet .Th isshou ld
surpr ise nobody in C hicago, but in the East
he
was, prior to
his
appointment, curiously unknown.
I
say urious ly, be-
cause a man who had spent a substa ntial par t of his l i fe de-
fendingChicagoagainst hepirat ical aids of Sam Insull
should have njoyed national eputation. A t anyate,
the vigor and determination with which he took hold of the
public-works programwas a lesson to those who did not
know him. Som e of his appointm ents-notably those of
Slat tery,
Glavis
an d Margold-have been excellent. T h e y
induce the reflection that one of t h e t h i n g s w r o n g w i t h t h i s
coun try n ecen t years was he ailure of those governing
i t
ro
avail themselves of the rains cattered round
it
Coolidge assumed that thinking was unnecessary
in
govern-
ment , aqd Hoover houghthe could do i t al l.
If
the fore-
going soundsa trifle lyric al it is because I am h ap p yover find-
ing myself surrou nded , af ter al l theseyears, by swarm s
of
men and w omen actually possessing chara cter and intelligence.
Maybe i t J s a l l a d ream.
lhv
Conferences Fail
By
HAROLD
J.
LASKI
London June 26
I
I.
N the first fortnight of the Economic Conference, certain
genera l ru ths abou t
all
international conferences have
emerged with tr ikin g force. 1)
It
is a mistake o
hold such a conferenc e unless the prepa ration has been com-
plete enough either to lay down the broad l ines of agreement
or to confro nt its members wi th decisive alternatives. I n the
present case, i t is clear that there h s been
no
such prepara-
tion.
(2 ) It
is a mistake to hold such a conference unless its
term s of reference a re im itedand specific. Otherw ise he
inevitable result is that al l nat i ona l divergences come for th-
wi th to the su r f ace , and in the effort to secu re some kind of
agreem ent which may save the conference’s face, broad gen-
eral resolutions are passed in whic h he reservations are
so
many, the vagueness
so
profou nd, that these resolutions cease
to have definite meaning.
It is already obvious that he charac ter of the present
conference nvolves this outcom e
of
its deliberations.
At
the
most, it will pass pious resolutions of principle which seek to
obscure the inhe rent conflicts
now
daily expressed ; nd each
stat e will be asked to implement heirgeneral-tenor n ts
own way. T o
regard the conference as
a
gatew ay to recovery
is already an attitud e impossible to any observer wh o wishes
to
be taken seriously.
11
Th at f ac t emerged in the
first
general debate. No speeqh
contained a specific program. W e knew, without
a
confer-
ence, that wholesale prices ough t to rise, th at curren cy needs
to be s tabil ized, hat ar if fs are oo high, that international
debts are a m enace, an d economic nationalism a isaster.
O f t enR a m s a yMa cD ona la repeated his well-known plea
for cooperation, w ithout any indica tion of
how it
was to be
obtained ; nd m ost other speakels offered the news that the
conference m e t a t- a grave cr is is andurged hatsometh ing
mu st be done. Commissions were et up
o n
currency nd
commercial policy, which ,havegiven birth o enough sub-
commissions to provide all the mo re importa nt delegates
with
either
a
chairmanship or
thz
position
of
a rappor teur .
/
i
T h e conference has not yet seriously confron,ted i ts first
great di lemma. Tar if f reductio ns are essential if the wheels
of international t rade are to be set mov ing; but tariff reduc-
t ions ca nnot be contemp lated u nti l currency stabil i tyhas been
achieved. T h e domestic s i tuat ion of Amer ica ender s ny
ear ly set t lement of this la t ter issue un likely; and i t is appar-
ent to most delegates that u nti l
Mr.
Roosevelt’s policy of in-
flation has reached some equilibrium, no s ta te is likely to risk
the invasion of its market by goods whose power to penetrate
is simplya functio n of depreciated currency.Washington’s
reject ion of the central bankers’ set t lement has brought into
the open a divergency of inte rest between Euro pe and Amer -
ica which prevents any decisive outcom e
of
the cr is is for a
considerable period.
T h e d e pt h
of
th e economic nationalism s here in conflict
is obviously plofound. T h e at t i tude of the Br i t ish seems to
be that while they will ma ke some concessions fo r a stable
currency, everyone’s tariff is open to ques tion a c e p t the i r
own.
Francewants a r e tu rn o go ld , andappe ars o have
no
other predominant interest ; her plea for a great program
of interna tional public works , and for shor ter hours, s truck
a du mb note
on
the conference piano. T h e Germa ns, through
Her r Hugenberg , pu t fo rward , and hen r epud ia ted , f an-
tast ic mem orandum demand ing colonies in Africa and ter r i-
tory in Russia, seemingly on the basis that Germany, in term s
of
theSpeng lerian philosophy, is a “virile” ation. T hi s
apar t ,he n lyGerman on t r ibu t ion ppear so be Dr .
Schacht’s comprehensive effort to avoid Ge rm an infla tion by
repudiating, so far as he can, al l foreign indebtedness. Rus-
sia contributed, hrough
M.
Litvin ov, an excellent essay on
the contradiction s of capitalism ; nd Mr. Soong said simply
an d r u l y h a t an increase in heChinesestand ard of life
would go far to promote world recovery by the new purchas-
ing power it would create.
Am erica’s position ha s not been who lly clear.
Mr. Hull
made
R
speech
on
th e evils of economic nationalis m ;’but his
proposal for a 10 pe r ce nt cu t in tariffs-if
it v a s
his-was
promptly epudiated by Sena torP i t tm an . T h e a t t e r h a s
applauded plans for the remon etization of silver; and Sen a-
to r Couzens has emphas ized, ~ v h a tMr. H ul l has denied, the
divetgence betwee n the President’s policy and tha t of recovery