Henderson Daily Dispatch

Babson In Favor Making Roosevelt U. S. Dictator

Says That Is Just As Essential In Winning The War Against Depression as It Was in World War;

Strong Hand Would Soon End Unemployment :

BY ROGER W. BABSON,

Copyright 1933, Publishers Financial Bureau.

Babson Park, Fla., Feb. 21.-I certainly am glad to hear the new Congress is considering giving President-elect Roosevelt "dictatorial" powers. Not only should he have these in connection with reducing the expenditures of the government, but he should have them to eliminate present unemployment. Although I voted and worked for the re-election of Mr. Hoover, I know Mr. Roosevelt and trust him.

Is Congress of Any Use Today?

Democracy was necessary to supplant kings, emperors, and other monarchs who inherited their powers to rule nations. Only by giving the people democracy, with every man a vote, was it possible to get men enough to overthrow the vested ruling families. Democracy reached its maximum height and strength when our senators were chosen by direct popular election and women were given the vote. Since the great World War democracy has been on the wane.

Our Federal Constitution is a great document for developing a nation during its early years; but it is a "promotional" constitution and not an "operating" constitution. To operate efficiently a great business like the United States (which is the greatest corporation in the world), our Federal Constitution is out-of-date. It should be amended by combining the Senate and House into one legislative body and limiting the powers of this legislative body largely to appropriations and taxation, with the distinct understanding that money cannot be appropriated until it is raised and in the banks, so to speak.

Winning the War Against Depression

In order for the United States to help win the War Against Oppression in 1917-1918 it was absolutely necessary for Congress then to give President Wilson dictatorial powers. Had Congress not then have done this, Germany would have won the war. In the present War Against Depression it may be necessary for Congress to give President-elect Roosevelt similar dictatorial powers. It may not be long before 12,000,000 idle, but honest men, willing to work, will demand this.

I go further and say that if the present intolerable conditions continue too long we are headed for Fascism in this country with a Mussolini in control. Except as a last resort, I should greatly hate to see this, believing it would be a step backwards. It would be far better to provide the same effective results by legislation as above suggested. This would give us all the advantages of democracy with the people still controlling taxation; but with an efficient administration, which is impossible today.

What Will Rogers Says!

The other day Will Rogers-America's greatest philosopher-said: "See in all the papers today about making Mr. Roosevelt a president, instead of just a man that sends plans up to Congress for the fun of having them vetoed. Now you will hear the wail go up, 'We are not ready in this free country for a Mussolini.' Say, Mussolini could run this country with his eyes shut. In fact, that's the way our Congress has been running it. Mussolini, with no money, no natural resources, no nothing, has kept his country going, while us with our surplus of everything under the sun, are mangy with representatives and liberty."

Mussolini could take our country today and put people back to work at the rate of one million per month. Moreover, all of us would benefit; not only the unemployed would get work, but manufacturers would get orders, merchants would get customers, and investors would get dividends. If you wish to know how he would do this, read the appendix of my book: "Washington and the Depression," published by Harper and Brothers. Briefly, this is the same plan, only reversed, as used during the World War to draft men out of industry into the army. The President, with dictatorial power as in war-time, would pro-rate these men back to industry in a systematic way on a sliding scale.

Mussolini or no one else could have done this two or even one year ago. After the debacle of 1926-1929, deflation was necessary. Now, however, since the deflation has taken place, this nation needs only some one to snap the whip and make us all start. Unfortunately we are "cogged" together like the wheels of a watch or soldiers sleeping sparrow fashion. We must all move and turn together. This requires either good fortune or a good leader. All statistics show this is the opportune time. Railroad earnings, bank clearings, commodity prices, and other barometer figures are at rock-bottom levels and ready to improve. We need only a leader who will give us faith to march forward to victory.

An Emergency Board.

Of course, the most sensible measure would be to provide for an emergency board made up in the same way as the Supreme Court, but composed of outstanding economists instead of lawyers. This emergency board would have nothing to do during normal times; but would have dictatorial powers during panic or crisis. Some think it should have certain powers during a boom; but I am not so sure.

This could easily be worked out by running the Federal government in tune with economic trends as depicted by the Babsonchart and other accurate and unbiased records of business. The administration and Congress could function as heretofore so long as its actions kept people normally employed; but whether the actions or inactions of the administration resulted in an industrial collapse, government control would temporarily pass out of the hands of the politicians. The powers of such an emergency board should, of course, be limited as to time say for a maximum of four years.

We must remember that all constitutions and all forms of social organizations are merely tools which are helpless of themselves. The value of any tool depends very largely upon those who control it. A nation of people actuated by unselfish motives could have prosperity under any form of government; but when first one group and then another seeks to gain selfish advantages when the very fate of the nation is in the balance, some sort of dictatorship becomes necessary. The real need is for a change in the hearts of people, but until such a change is brought about all classes of people must be forced to cooperate for the common good under a leader with extraordinary powers. Prosperity depends upon making the best of what we have rather than upon asking for more. This, moreover, is the real test of character.

Business, as registered by the Babsonchart, now stands at 12 per cent below a year ago.