Americans who do not see eye to eye, politically, with President Roosevelt will be dismayed by the reports of his intention agaín to bring prosperity to the United States, by resort to the old policy of pump-priming. He proposes a lending and spending programme amounting to U.S.$4512,000,000 and a potential credit expansion plan amounting to no less than U.S.$39,000.000,000. The President's general objective is to increase the national income from the present $56,000,000,000 to $80.- 000,000.000 a year. The experience of the past few years, when the outlay of huge sums of money brought a degree of prosperity back to the United States, shows that very little permanent improvement was effected in the fortunes of the country. for it was shown that, directly the flow of money for schemes under the various New Deal plans stopped, it was but a short while before signs of depression were to be seen. There was a belief that a nation could spend its way to prosperity. but the last few years have amply proved that such an idea is a fallacy, and that up to the present no new remedies have been discovered for old fashioned economic ills. From the President's statements it is to be deduced that he expects a highly concentrated period of expenditure, lasting for not more than a year and a half, to be sufficient to put the country well on the road to prosperity again. It is hoped that he will prove to be correct in his estimate of the situation, but if the past is anything to go by. all that he can hope to attain is a temporary relief from the present recession which is afflicting the United States. British experiences of such economic troubles has proved to the British people that the only real method of defeating depression is to face a period of sacrifice, with belts tightened in a hole or two. until some effective balance has been achieved between income and expenditure. It is an uncomfortable process for the masses, who naturally feel the cuts more than those in better circumstances, but the history of Britain during the last seven years has clearly demonstrated that that method is ig the long run the most effective. It might not be so easy for a Government of the United States to preach such a doctrine to its people, for it is a decidedly unpopular one, even though the best of cures for economic ailments.
Text read from the printed page and cleaned; old type leaves the occasional error.