Evening star., 1932-12-18
OFFERS ROOSEVELT
PLAN'0F 10PO|NTS
Henry Morgenthau Sees
QuaSi-MartiaI Law as
Possibility.
BY the Associated Press.

8y the Associated PreSS.
NEW YORK, December 17-Ten
Suggestions" for meeting the problems
which will face Franklin D. Roosevelt
when he moves into the White House
next March were advanced tonight by
Henry Morgenthau, former Ambassador
to Turkey and active Roosevelt sup
porter during the campaign.
In his discussion of Federal govern
mental finances, he said:
1T is only by intelligent diagnosis
Of present necessities and immediate
prescription of the proper remedies that
We can avoid the unpleasant shock OF
a financial ultimatum like that which
has awakened cities like New York.
Chicago and Philadelphia to sense OF
the gravity of their financial position. y
He called on public opinion to prevent
"any such national humiliation" as New
York faced when bankers demanded
certain economies"
Sees Quasi Martial Law.
IF this be war against depression" -"
the former Ambassador declared. we
may have to resort to a temporary
quasi-martial law to be terminated the
moment that it is no longer required.
The Government must step IN. II
necessary, to prevent collapse OF ma
tional confidence"
Morgenthau's 10 "suggestions" were.
First, the time has come when We
must make up our minds to live strlctiy
within our incomes. At all costs. our
budgets-whether Federal, State, munlc-
ipal, commercial or famlly-must oe
balanced.
secondly. we must have the courage
to lower the tarlff.
Thirdly. we must recognize that de-
spite the Kellogg peace pact. an early
general war may overwhelm us. In order
to prevent that unspeakable calamity. We
should enter at once into wholehearteo
co-operation with the League OF Nations
and should insist upon the plan OF sub
hitting all existing disputes to the
World Court.
'Fourthly, a prompt reduction OF
armaments should be a condition prece-
dent to any postponement or readJust-
ment Of international debts.
Urges Branch Banking.
Filthy, We must so deal with our
banking system as to remedy the oe1ecls
which were disclosed during the recent
upheavaI. Banks should be limited
strictly to banking business. Assuming
that supervision by the Nation is mace
effective banks should be permitted to
establish Federal branches.
"Sixthly, the United States must be
maintained as a going concern. what
ever bonds are issued as an antldote to
the depression must be subject TO
sinking fund which will prevent them
from becoming permanent addition TO
our Federal obligations. InaSmuch as
more than 100000 residents OF the
United States have some Of their hard
earned savings in life insurance COM
panieS. savings banks and co.operatlVe
loan associations, it is for the benefit OF
the Nation as a whole to ensure that
the sanctity of those funds shall net be
impaired. The position of real estate
mortgages is serious. But here we must
face the necessity of squeezing out all
artificially inflated values Similarly,
the holders of these mortgages must be
willing individually to carry the prop
critics fer the period necessary to brlng
back to 60 per cent of the original
value.
PROPOSES Farm Problem Plan.
"Seventhly, there must be an intelli-
gent handling of the farm problem.
Gov. Roosevelt should request the heaos
OF the various agricultural orgamza.
tions to agree on a definite plan ana
have them assume full responsibility
for its success.
"EighthIy, the railroads must be
maintained. A way of dealing with the
dificulty would be for the Reconstruc-
ton Finance Corporation to continue
their assistance.
"Ninthly, the Democratic party must
never be unmindful of its solemn prom
Use to remember the forgotten man;
The time has come when occasional
unemployment must be met by some
form of organized insurance.
Ing day. working week and working
year"