Uptown Sinclair, peerless knight of things as they ought to be, has by the legerdemain of New Deal psychology, obtained the Democratic nomination for Governor of California, and now, two months later the bonds of the Golden State have decreased one-tenth in market value. Every indication points to the fact that this timidity of capital will continue until election, when, if the former Socialist is elected, it will turn to precipitate flight.

It is very unlikely that Mr. Sinclair's election could automatically bring about all the starting points in his EPIC program, for be will face a legislature which is not only conservative, but which is secuntoured to dancing to the super-conservative time of the late Jim Rolph. But in the present state of business psychology, rumor is as powerful as accomplished fact in raising the already high blood pressure of the financial world. If conservative experts predict that the credit of the United States will be rendered hazardous by the comparatively mild radicalism of Rooseveltianism, it is certain that the startling program planned by Mr. Sinclair in California will absolutely jettison the credit of that State, which has heretofore escaped the ravages of the depression to a remarkable degree.

Mr. Sinclair professes readiness to cooperate with the President to the fullest extent, at least to the fullest extent of an ex-Socialist's powers. If he were really in deep sympathy with the New Deal, it seems that his inclination should be to assist the President to reassure a nervous business and financial world, rather than to place it, so far as California is concerned, in a condition of plain hysterics.