Evening Star Newspaper, November 24, 1936, Page 14

Jones’ Speec h in Forum R. F. C. Chairman Foresees Era of Good Business and Calls for Co-operation—W arns Investors to Use Care in Buying. The text of the address by Chair- man Jesse H. Jones of the Recon- struction Finance Corp. last night in the National Radio Forum fol- lows. The Forum is arranged by The Star and broadcast over a Na- tional Broadcasting Co. coast-to- eoast network. ‘The Washington Star and you, Mr. Kuhn, make a substantial contribu- tion to our national administration, and to people throughout the coun- try, in providing this forum for cur- yent discussions of public affairs. It is doubtful if in our history great- er attention has been focused upon our Washington government than in this period. In the little traveling that I have been able to do during the past three or four years, people invariably have shown the keenest possible interest in what is going on in Washington; they are always eager for information. Certainly in no presidential campaign has there been such widespread interest as was dis- played in the one just closed. ‘We are ali to be congratulated upon the practically unanimous indorse- ment of President Roosevelt, and upon our determination to continue his leadership. Now that we have placed this great and continuing respon- sibility upon him, it is the obligation of each and every one of us to sup- port him. Running our National Government is not unlike publishing a newspaper. A well-balanced newspaper has some- thing in it for every class of reader, and our National Government must be run in the interest of every class of its citizenship. None of us likes, or reads, everything in a newspaper; and none should be expected to agree as to every detail of government. Influence Is Democratic. It is significant, however, that in the election, the Roosevelt adminis- tration was considered, as it should have been, in its entirety, with atten- tion directed to accomplishments in the net. The President started out with the avowed purpose of bettering conditions for every one, especially the less fortunate. He has stuck to that course throughout, and stated most emphatically in the campaign, that he expected to continue in that purpose. There is something to be‘ learned from the great vote he re- many of our strictly domestic com- panies cover toc much territory. Tt is becoming more and more difficult for the smaller independent units of business and industry to succeed. Entirely too many self-perpetuating bodies and boards control the money and credit of the country, money and credit that belongs to the peo- ple. This is the natural result of concentrated power, and is not good. It was clearly manifested on November 3 that there is a growing opposition to this and kindred tendencies. The head of our biggest bank, Mr. Winthrop Aldrich, outspoken against the President’s re-election, said the other day in a public speech that if business is to avoid the danger of prescriptive government regula- tions, it must guide its activities for the public good. Mr. Aldrich further said that no man can long keep his work to himself nor plan for himself alone. free to do as he pleases, ir- respective of outside consequences; that if we wish to avoid the dangers inherent in centralized authority, every one in responsible positions must guide his actions with a view to the public good. All should realize this, as all should realize that there must be work for people who have to work for a liv- ing, and at living wages, and relief for the dependent. As business and in- dustry are able to absorb the em- ployables, private charity can and will, in large measure, take care of the dependent. But we may as well understand that to whatever extent private em- ployment is lacking, the Government will have to take up the slack. And that the profits of business and in- dustry will be taxed to pay the bill. There is no other way except a tax on capital and, of course, there should | be mo tax on capital as long as there are profits and income to tax. Many Suggestions Made. Many suggestions have been made in the last few years about how to apportion the available work so that | all employables can have a fair share. Shorter hours, fewer working days, or some method of rotation have been discussed. A combination of these might prove effective. Either that, or a very much broader public works program will be necessary. It all ceived—the controlling influence in our country is neither reactionary | comes to about the same end. If every family able to do so and nor radical, but democratic and $0- | every business of whatever nature eially minded. | Some of our leaders, both political | and business, opposed the President’s re-election rather more vigorously | than ordinary political nmliauomi would prompt, nothwithstanding that the profits of business have been | multiplied many times under his ad- ministration, and largely through his | policies. This, of course, was their privilege as American citizens, but most of them can be relied upon to accept the verdict in good grace. We now hear on all sides the ques- tion: “Will business support the | President?” The answer is, it will. Its leaders, particularly in big busi- | ness, are much too smart not to. That is, they are too smart money and | business-wise, ‘that is why they are at the top. However, they have been none too wise politically, or with re- spect to our social problems. Co-operation For Axes. But with such an overwhelming in- dorsement of the President’s policies, those business leaders who opposed his re-election will be all too willing, at least for the time being, to bury the hatchet and do what they can to assist in completing the job of | recovery, and generally to adopt the broader policies for which the Presi- dent stands. Some of them may have their fingers crossed, but for the present, co-operation will be substi- tuted for the ax. Some who were active against his re-election are al- ready advising co-operation and sup- port of the administration. In the main, the smaller and medium-sized businessmen supported the President in the election. His administration had saved their busi- nesses and, as with big business, had changed the color of their ink from red to black. So we need have no fear about business not supporting the President. . I made the statement in a speech during the campaign that the Roose- velt administration is not and never has been against business. A friend of mine, who vigorously opposed the President’s re-election, good-naturally took me to task for this statement, notwithstanding stock in the corpora- tion he represents is selling at almost 10 times what it was selling for in 1932. It was friendly criticism, of course, and 80 considered, and I hope, upon reflection, now that the election is over, this friend will be able to understand that statement, which I now reiterate. Never Against Business. ‘The President is not and never has been against business. In the cam- paign he said, in effect, that he wanted to preserve it, but for all the people instead of for a select few. He spoke of preserving economic de- mocracy as well as political democ- racy. Both are essential to the wel- fare of our country. He further stated that in his view, private enter- prise is the backbone of the economic well-being of America. He did, how- ever, draw attention to the fact that half of the industrial corporate wealth ©f our country had come under the control of less than 200 huge corpora- tions, and that many of these, in one ‘way or another, have interlocking in- fluences; that this drift was a menace to our social and economic system; and that he proposed to use every the general good, as have institutions. The powerful abuse power and hit too hard, sometimes without realizing it. They become arbitrary, dictatorial and impatient few of them realize the necessity for Testraint of their powers. The con- tinued struggle for corporate expan- hovel is too great—the mountain too high to climb. would hire one or more persons in addition to those presently employed, the relief problem would soon adjust itself. Government expenditures have been | necessary for relief, and Government | credit has been necessary in every field of endeavor. sary and each complemented the other, without any severe strain on Government credit. During the campaign I called atten- tion to the fact that emergency credit agencies of the Government had pro- vided more than $15,000,000,000 credit, and in a businesslike manner. It is reassuring to me, as I am sure it is to you, that our Government can operate efficiently in business when necessary. It is interesting to have demon- strated that men of ability and in- tegrity come forward in time of eco- nomic distress as readily as in time N €rv cne is in a position to leave home, business and private responsibilities for indefinite periods, but always there will be found in Each was neces- | -~ THE EVENING- 'STAR,"WAQHING_TON-» D. -0, -TUESDAY, -NOVEMBER. 24, 1636. America voluntary man power for any Interest Should Be Low. In large measure recovery has been achieved, and Government should withdraw from the lending fleld as rapidly as private initiative is prepared for it to do so. To be specific, when private lenders are able and willing to meet credit requirements on a proper basis. Most Government credit agencies are curtailing their activities and ting expenses, but I doubt if thé country is ready for them to withdraw entirely. High irterest rates and severe credit requirements would cause another setback. They would retard building and expenditures fox,| capital goods in general, and would take away from the country, particu- larly users of credit, a feeling of se- curity they now have in the knowl- edge that such agencies as the R. F. C., Federal housing, farm credit and public works can,- if necessary, pro- vide credit. It should be remembered, too, that interest and credit charges are directly and indirectly paid by the masses and should be kept as low as possible, with a reasonable return to the lender. It is desirable to protect the farmer sgainst the necessity of selling his crops at harvest time, regardless of price. Also mortgage money at fair rates and upon fair terms is essen- tial to stabilize the mortgage situa- tion; this will help real estate values, and new building of all character, some of which is becoming badly needed. The Government should also be in a position to make railroad loans, in order that the roads may be able to get their credit requirements at fair rates. Some further lending to indus- try may be desirable, although that situation 1is adjusting itself more rapidly. Curtailment Desirable. Whatever the President and Con- gress may determine with respect to Government lending, certainly cur- tailment is desirable. It can be ac- complished through administration. The R. F. C. has been restricting its loans for more than a year, lending only when it appears that a worthy | borrower is unable to get credit from other sources on fair terms. It may not be generally known that the Home |Owners’ Loan Corp. has made no | new loans since June 12, 1936, and can lend no more without new legis- lation; also that demands upon the Farm Credit Administration sfor farm loans are diminishing at a rapid rate, as are crop and seed loans by this agency. Crop and seed loans aggre- gated $57,000,000 in 1933, $38,000,000 in 1934, $57,000,000 in 1935 and $16,- 000,000 in 1936. The Public Works Administration has used less than one-fourth of the $300,000,000 authorized for grants and loans by the last session of Congress. ‘The Federal Housing Administration continues to insure home mortgages, which greatly stimulates new home construction, but the Government guaranty will not be behind its in- sured mortgages on loans it insures | after July 1, 1937, unless new legisla- | tion provides for it. There need be no fear on the part |of money lenders that Government lending will take their business if | they perform their functions. How- ever, this is the first time Government | has fought a depression as deter- minedly 8s it wages war, and since we have more panics and depressions |than wars, economic preparedness could well be a part of our national policy. By this I do not mean to indicate that I favor government in business one day longer than neces- sary, but would counsel against ab- ruptly discontinuing all Government lending. Interest rates would im- mediately go up and they are high enough now. Co-operation Is Necessary. It is clear that we are in for a period of good business and if we will be a little more co-operative, each having consideration for the other ymmmm WE SELL U. S. GOVERNMENT-INSPECTED MEATS 311 7th St. N.-W. TENDER YOUNG SMALL FRYING -24° MINCE MEAT = 101/2° FANCY STEWING FOWL ~21° BE SLICED BACON VE Cholce Rib Chop: Roll Creamery BUTTER PO Turkeys Lean Boiling Tender Roast Fancy Chuck Roast 25005 5 STEAK =2z 23° Pocket Roast Shoulder Roast ;. 135¢ Shoulder Chops ;, 135¢ CUTLETS = 32°¢ MARKET CO. 3146 M St. N.W. 1b.25° Extra Special EF n. 10e n. 14e »n 16e . 22¢ SMALL SMOKED HAMS -24° CHOICE ROASTING -25° SCRAPPLE OR PORK n 28€ AL n 1le s n 25¢ ~ 36e¢ R K Small Shoulders ;, 18e¢ Loin Roast CHICAGO BLEND COFFEE » 1@ QUART SALAD LEGS Cranberries Lean Link Sausage " 21e . 20¢ LAMB Shoulder Roast ;, l4e Shoulder Chops . 14e¢ Small “;220 n 25e 38-0x. JAR APPLE Dressing | Celery - 2wmct= y5¢- | BUTTER Cover Too Much Territory. I have never been able to see advantage to soclety of iny corpora tion covering the globe unless it for purposes of Grapefruit 0 P:N TILL EIGHT 25° o] 15 PM. wmu-p( Foresees Good Business Chairman Jesse H. Jones of the Reconstruction Finance Corp. reason, and in 1932 they had gone just as far the other way. Sound, healthy values are necessary, and I am not saying that present prices are too high, but would suggest care in making investments. A The extra dividends that are now being paid by some corporations may be misconstrued in determining the sound value of & stock. It should be understood that failure by a corpora- tion to declare dividends equal to its taxable net income would require the corporation to pay a graduated surtax on such of its net taxable earnings for the year as are not distributed in dividends. It a corporation dis- tributes all its taxable net income, it will naturally have an irregular divi- dend rate because its' earnings will vary from year to year. This new tax is not a tax on existing surplus, but & tax on the undistrib- uted net income of a corporation, after depreciations and deductible losses, dating from January 1, 1936. But. enough about economics and business—Thanksgiving is upon us sgain. The President has declared Thursday, November 26, Thanksgiving day, and we have much to be thank- ful for this year—greatly improved conditions and a better morale gen- erally. The wheels of industry are speeding up, unemployment is re- ceding, initiative is again on the up- swing, and confidence has replaced | fear. So when we grace our Thanks- giving boards Thursday, let us thank God for the blessings He has brought into our lives, and the security into our homes. Let us thank Him for the guidance and strength He has given and not try to do all the business, we will get along better. It is a fair criticism that every one in business tries to increase his volume every year. That naturally means en-~ croachment on the other fellow or a continually increasing buying power, greater than is possible. It would be ideal if each unit of business would try to do a better job, concentrating on service, .efficiency and quality rather than increased volume, and remember that its com- petitor must also live. And we should not forget too quickly the distressing plight from which we are just emerging. We have not yet found a way to avoid depressions, but our President and pray for their con- tinuance. There are still several millions of our citizens who are not able to pro- vide for themselves. Those who should OLD GOLD AND SILVER will bring you one way at least to minimize them would be to avoid booms and inflated values. Two or three years ago we heard a great deal about Government inflation. Inflation is bad, whether private or Government, and we would do well to avoid either. Speaking of inflation reminds me of the fact that President Roosevelt has had authority from Congress for more than three years to issue $3,000,000,000 of cur- rency. This would have been inflation to that extent. That he has not is- sued this $3,000,000,000 or any part of it is the best evidence any one could wish that he is not an inflationist. Healthy Values Necessary. Prior to 1930 values were out of all They didn’t know what gasoline it was... but the “mystery gas” was Blue Sunoco and 87% of the motorists who ftried it proved that it gives TESTS WERE MADE The Ross Federal Research Corporation roximately one hun- asked at random app y ated cities, dred motorists, in 14 wi to contribute their less Blue Sunoco and, -uninfluenced opini services Here are no empty claims about Blue Sunoco’s quick starting; here ar¢ facts, truthful, above question, definite proof of this motor fuel’s superiority in starting, power and performance, as proved by more than twelve hundred motorists, driving their own cars in states from Massachusetts to Virginia and on west! WHO MADE THESE TESTS? Motorists like you and your neighbors, selected at random by Ross Federal Re- search Corp.:—workmen, clerks, doctors, housewives, merchants and salesmen —all contributed their services for these tests. BLUE SUNOCO’S QUICK STARTING PROVED! These motorists—more than twelve hundred of them, driving practically every make of car,— compared Blue Sunoco against fifty- four other gasolines, including eleven premium-priced fuels, and eighty-seven out of every hundred motorists proved in their testing a own. cars, and to their own satisfaction, that Blue Sunoco started quicker than the gasoline later, the ofeach Federal investigators. Of course, some motorists were regul a;B!uoSunmnfln-mh‘”M omitted from all compilations. ‘That this “mystery gasoline” was regular by the testing be most thankful are the ones who|We are thankful thas estic are able and willing to divide with o iy these, and see to it that none suffer for lack of food, clothing and shelter. VERMOUTH Imported- by W. A. TAYLOR & COMPANY, NEW YORK How’s that for proof? How’s that for absolute evidence that this winter the most dependable quick starting you can buy is at the nearest Blue Sunoco pump? Get your test tankful today —but don’t dilute Blue Sunoco with a weaker gasoline and expect Blue Sunoco results. With nothing but Blue Sunoco in your tank, you will start easily and surely, all winter long! Regular Gas Price—of course. QUESI’IONNAIRE Compared to You have % YES 95%, on hills? better ql) a -around P"f°m'cn¢:?