“THE NEW DEAL”

Hawke's Bay Tribune, Volume XXIII, Issue 227, 7 September 1933, Page 10

“THE NEW DEAL”

REVERSING ORDER OF THINGS INDIVIDUALISM GIVES WAY. AN “ORDERED” DEMOCRACY. (By T.C.L.—No. 4.) We have witnessed a nation, with material resources as extensive and as varied and as valuable as those possessed by the whole of the nations of Europe, come rapidly to the fore, challenging every precedent, confident in its ability to maintain and even surpass every past achievement, aggressive, sometimes contemptuous, in its attitude towards the older and effete nations of the world, perfectly sure of itself and of its preordained destiny, suddenly drop from its Olympian heights to mother earth, hurt, grievously hurt, its pride humbled, its people disillusioned and embittered by the inexorable operation of some unseen force, the existence of which was never suspected, let alone known in America. It was the force of economic pressure that in the years gone by had exerted its influence on the older systems of Europe. The average American citizen, however, could not bring himself to believe that a transcendent economic system like his, that had its roots in and a scope over a huge continent, with material and physical resources in keeping with its immensity, could ever be threatened or attacked by pressure from without or within. It took him three to four years of intense distress and loss to realise his mistake. Then he was ready for anything, for the most drastic treatment, for any experiment however revolutionary in form or purpose. The Presidential election of November, 1932, gave him his first opportunity. President Hoover came into power four years before as the exponent of a rationalised philosophy of rugged individualism. Only by following the same lines that had built up the great federation, ho felt, could the nation continue to flourish and reach its appointed end. He was the close associate and representative of “big business,” of .the great corporations and financial institutions. When the full force of the economic storm broke upon America, Hoover and his ■ Administration made moves to meet and counter it, only, however, to fail if not to make matters worse and put the country deeper into the economic mire. The country began to lose confidence in him and his policy. By-election after byelection went against him. Soon Congress became openly hostile, taking pleasure in discomforting and discrediting him. The public grew impatient, for it appeared that the President and Congress were fiddling while the country w'as being economically burned. “BIG BUSINESS” ALARMED. Big finance and big business thoroughly alarmed about their own position and security, stepped in, and through their Press megaphones endeavoured to instil in the minds of the electorate the suggestion that a demo-, cratic political system w>as unequal to. the task of dealing with the emergency and urged the desirability of adjourning Congress and setting up a dictatorship on the lines of Mussolini’s.

Chaos was in the air whe n the Presidential election came round. Hoover was utterly discredited, though his honesty of purpose and intentions was never in doubt. Franklin Roosevelt, ex-State Governor of New York State, was the Democratic choice. He had not distinguished himself as an administrator when Governor or as Secretary for the Navy at the time of the Great War. However, he was opposed to the policy of “laissez-faire” that was the main characteristic of the Republican programme, and this was sufficient for the great majority of electors, who felt that no change that could be effected by a new administration could possibly make matters worse than they were. Accordingly Roosevelt was given a vote the size of which amazed the Republicans and impressed the world. Roosevelt’s first act was to surround himself with men who had distinguished themselves as liberal and original thinkers and who had shown themselves sympathetic with the condition and aspirations of the “under dog.” Professors of economics and men of industry and business, they were formed into a Cabinet and council of advisers that must be unique in the history of Washington administrations. Previously Republicanism meant power, privilege and patronage for the big financial and business interests, and the way they were applied, or misapplied, may have some connection with the severity of tho economic conditions that were experienced. SWING IN OTHER DIRECTION. The swing now is in the other direction. Reaction has followed abuse of privilege. It was not long before Roosevelt and his “Brain Trust” brought down their revolutionary proposals. Introduced in rapid succession, to the amazement ofi an expectant people, giving them little or no time io recover from the shocks sustained, they were designed to form a full and organised “set-up” (to use a popular Americanism) to meet and overcome the economic troubles of the nation. The scheme'represented, in the words of their sponsor, the President, “a sup-

reme effort to stabilise for all time the many factors which make for the prosperity of the nation and the preservation of the American standard of living. The day of individualism, of freedom of action in business, industry and finance, had passed, so it was heralded throughout the land; a new era had been ushered in—“a partnership between government and industry and a partnership between government and transportation; not partnership in pro fits, because the profits will still go to the citizens, but rather partnership in planning and partnership in order to see that the plans are carried out,” to again use the words of President Roosevelt. And in the series of laws enacted by an acquiescent Congress that partnership is being implemented. Professor Raymond Moley, the President’s right hand man, to whom the chief credit is due for the devis ing and shaping of the “New Deal,” and who has since retired, said that the Administration was working for “an architecturally more harmonious life,” that is desired to “supervise the ebb and flow of economic affairs more closely” in order to “assure every American citizen that his general interest is not sacrificed to special interests.” The proposals confer on the President stupendous powers, practically the control of American life —agriculture, industry, finance and labour. The forms of the constitution have certainly been complied with, but the President is none the less clothed with the powers of a dictator, and Congress has been pleased to abdicate in his favour. But, whilst ready to do this, Congress will not give the President power to settle the Allies’ war debts. The reason is that in matters of internal economy it had to register the popular will as expressed in the overwhelming Presidential vote; but it had no similar mandate from the people in respect to war debts, the treatment of which is still a sore and debatable point with so many.