Evening star., 1932-07-28
WAY HELD CLEAR
FOR RELIEF WORK
Appointment of Pomerene
Seen as Removing oh.
StacleS to Program.
By MARK SULLIVAN.

The feeling in Government circles,
with namin;; Of ex-senator W. Atlee
Pomerene Of Ohio as chairman of the
Reconstruction Finance Corporation, is
that ell agencies for promotion Of busi-
ness recovery are now completed. The
further feeling is that there is now
no material delay or obstacle to the
function of those agencies. Since there
is much confidence in the potency OF all
these agencies, especially the Recon-
struction Finance Corporation, which Is
designed specifically for relief, there is
an atmosphere Of calm about the busl-
ness future such as has hardly exHSe@
during more than three years past.
The last possible impeachment TO the
successful functioning of the Recon-
struction Finance Corporation was re-
moved BY giving the chairmanship TO
Democrat and making the directors a
Democratic board with four OF that
party to three Republicans. It became
apparent toward the end of the session
of Congress that there was danger that
the institution might be hampered by
being dragged into politics. 1t was eVi-
dent that during a political campaign
the Democrats as the party OF the cuts
would be suspicious that the Repuo-
licsns would use the power of loaning
such an enormous sum as three ana
half billion dollars for the purpose OF
helping Republicans.
Feared Hampering Work.
That suspicion lay behind Democratic
Speaker Gamers insistence that the
loans be made public. The charge was
made by some Democrats that the Re
publicans would raise their campaign
fund through contributions from per-
sor,s favored by loans from the re
construction Finance Corporation
There was the beginning OF oarrage
against the corporation similar TO the
charges made by Democrats that the
psnuhIican administration favors Re-
nlblicans in the matter of tax REFUNDS.
An investigation of the corporation was
nroposed by a committee OF Congress-
All this. it was feared, would seriously
hamper the corporations usefulneSS.
THE directors would be timld ABOUT
making loans. They would be called on
the carpet for hostile Investigation.
Public suspicion of the boardS olSLn-
terestedness would be aroused, ana TINS
would diminish the healing quallty IN
herent in its existence.
The way to avert all this, it was real
tied. was to give the institution Demo
cratic board of directors, and to give
the chairmanship to the most disting-
Iished Democrat who could be found
available to take 1t. Ex-Gov. smith
would have been an admirable choice,
for he has high executive ability ana
ne was largely responsible Tor orlglnat-
ing the idea of making loans Tor SELL
sustaining public works.
Every Barrier Removed.
It is unhappily necessary to admit,
however. that appointment OF smith
might have meant more politics ratner
than less. for it might be charged that
the administration was Javoring
Democrat not very friendly to the
party's presidential candidate. To this
and to the whole situation, the solution
and the answer is the appointment OF
ex-senator Pomerene as the most dis
tinruished Democrat who could be found
free to serve. -,
So far as any one can now see, NJ
orally every barrier is removed from the
successful functioning of the admins
tration program for help toward pusl-
ness recovery. More than that. there
Is complete confidence in business
circles as well as Government, that the
bottom Of the depression has been
reached and passed and that what Is
ahead now is recuperation.
That the recovery can hardly be
rapid goes without saying. Psychology
cally the conditions are favorable in
way that has not existed for nearly
three years. AS it is put. the feeling
of strain has gone out of the depres-
sion" The mere ending of sense
of strain and continuous apprehension
that has gone on so long is itself an
extremely healing condition. 1t is cer-
tain that we are in a new phase of
the business cycle. The most minute
survey of the world by minds made
Watchful through three years Of success
eive shocks, reveals no condition except
r1inh az nrnrnlAe wholesome eneSS