Evening star., 1932-02-12

Wall Street, ever quick on the financial
| trigger, responded enthusiastically to
| the Washington news of a bipartisan
agreement for further loosening Of
credit by emergency changes OF far
preaching import in Federal Reserve re-
discounts, reserves and note issues. The
momentary uprush of stocks was i'm
pressive. For weeks there has been
battle behind the scenes between those
in Washington and in New York who
have favored Limited imitation" through
monentary and credit channels, end
those who opposed any artificial
stimulants, and specially opposed any
letting down of the bars in the matter
Of rediscounts by member banks with
the Federal Reserve Bank. Senator
Carter Glass has been the leading con-
gressional opponent of any subSta ntiaI
change in the rediscount eligibility pro-
visions of tie Federal Reserve act.
What has now happened seems to be
that the President. the Treasury and
congressional leaders of both parties
have at last united in the belief that
the Reconstruction Finance Corpora
ton alone cannot halt the failures OF
the weak banks and relieve the fears
Of the strong banks: that anti-hoarding
drives are futile until the people them
selves have new confidence in the banks
and the banks new confidence in them
selves and in their depoSitors and GUS
toners. Having reached this conclu-
sion. all hands have gotten together on
a fiscal program which is believed will
turn the tide Senator Glass agreed
to 60 along with this program upon the
condition that the changes in the Fed
ersl Reserve system would be only
temporary. The present plan is to put
a one-year time limit on them. Con-
gress is to be asked to break all legis-
lative speed laws in speeding the bill
to the White House.
Much water will go over the dam be-
fore the Democratic convention meets
In appraising the claims of the Roose-
welt managers some observers see a
parallel between the Roosevelt pre-con-
vention position today and the position
of McAdoo at the corresponding period
in 1924. At this time in that year the
McAdoo managers claimed 800 votes, as
compared with the Roosevelt claim a
few weeks ago of 670 votes. The forces
back of McAdoo, except Tammany,
were practically identical with those
| back of Roosevelt. He was weak among
the same elements. McAdoo was more
resourceful and dangerous fighter. Yet
Smith stopped McAdoo. So 1t Is
argued that Smith can stop Roosevelt
this time If he sets out to do so. On
the other hand. Smith was candidate
in 1924 mighty determined one; this
year he is simply the leader OF the
party"
Garner and Ely, Texas and MaSsa-
chusetts, that is the best Democratic
1882 vote-getting combination in sight.
| the one that would give Hoover ana
Curtis the stiffest battle, according 70
a prominent Republican, who may not
be quoted or identified, but who has an
enviabe record for canny political
Judgment and who has been close 10
both the Coolidge and the Hoover ao-
ministrations. Furthermore, this gentle-
man, discussing this week the repercus-
sions of the Smith statement, was
willing to hazard a guess that 1ust
to evertuate at Chicago. The prospect
of the elimination of Roosevelt by smith
and of Smith by Roosevelt is booming
the presidential stock of both Ritchle
and Garner. Both now look to be for
midable contenders. If Ritchie is nom
mated his running mate Will not De
from the Atlantic seaboard. nor mill
tant wet. But If Garner wins the prize
a wet from the Northeast area for sec
ond place is the logical choice, and the
present Governor OF MASSACHUSETTS
meets the specifications to nicely.
Coincident with the march to the
White House this week of 100 labor
leaders headed by President Green OF
the A. F. of L. to proclaim the exist
ence of a real national emergency
and to plead for the enactment OF the
La Toilette Costigan bill to appropriate
s375 900 900 to help the jobless, the
President proclaimed an embargo upon
extensive handshaking. Mr.. Hoover re-
ceiyed the labor petition without COM
ment, but did not spare any time for
greeting or picture taking. It was an
nounced that hereafter Mr.. Hoover Will
receive small committees If they have
any recommendations to lay before him.
but cannot devote time to pleasant
greetings and must request to be ex-
cused from participation" Evidence
of the enormous pressure upon MI
Hoover's time WAS found IN the rise IN
the White House telephone bill. II
Sundays be excluded. incoming phone
calls now average more than 1000 per