Evening star., 1932-12-28
.PRES|DENT-E[ECT
REJECTS Z hANS|
Turns Down Hoover Offer of
Cooperation on Budget
as Well as Debts.
BY DAVID LAWRENCE.


Two offers OF cooperation from the
Hoover to the Roosevelt administration,
it became known today, have been re-
jected.
Not only did the outgoing regime
endeavor unsuccessfully to reach an
understanding about war debts, but
overtures made with respect to plan
to bring about the balancing of the
Federal budget have thus far met the
same fate.
The latter negotiations were not car
ried on directly, but a program Of
fiscal suggestions was forwarded to one
Of the advisers Of the President-elect,
who, 1t Is understood, revealed its con-
tents about 10 days ago to Mr.. Roose-
elt.
Planned Refinancing.
The idea was to bring about re-
duction OF governmental expenditures
and a non-partisan consideration of
revenue measures so that both parties
would join in the task OF maintaining
the credit OF the Government. It was
pointed out that a refinapc cling opera
tion would then be possible Of such
proportions as to convert q large part,
II not all, Of the short-term indebted
ness, thus aiding in the natural outward
now Of some Of the huge reserves now
piled up In the Nations banks.
Nothing was heard here about the
Roosevelt viewpoint until a few days,
ago. when it was indicated that the new
Chief Executive would proceed along his
own lines.
Within the last "a hours. however,
there have been some significant state
ments made on Capitol Hill which in
dicate that some aspects Of the problem
emphasized by Hoover officials are be-
ginning to be taken seriously by the
Roosevelt group. For example, both
Speaker Garner and Representative
Collier Of the Ways and Means Com
mittee have publicly expressed them
selves as favorable to a sales tax II that
Is essential to the balancing Of the bud
get. Also there is noticeable revival
OF talk about non-partisan action in
framing new revenue measures.
Next so Days Vital
The point made by the officials of the
outgoing administration is that the next
60 days are vital to the credit of the
Nation and that to leave the problem
OF balancing the budget until after
March 4 would be hazardous. Thus
1t is presumed that the extra session of
Congress will bring flood Of unsound
proposals and 1t is contended that de-
bate on these measures would not be
able to make much headway or create
much disturbance in the business
world If the budget has been balanced
but that II the Treasury is not showing
any signs Of balancing the budget even
the debate on miscellaneous proposals
will have an adverse psychological ef-
feet notwithstanding the power of the
new administration to keep such bills
from being passed.
Broadly speaking the argument is
that the present Congress is far more
conservative than its successor will be
and that II added to all the other legis-
lative problems 1t becomes necessary
also to balance the budget in the Spring
months, business will feel the ill-effects
OF the wait.
While administration officials have
learned that Mr.. Roosevelt did net take
kindly to their offer Of cooperation on
the budget-balancing job, 1t would not
be surprising II the President elect did
finally come around to the point of view
Of informal cooperation on fiscal mat
tiers. He can do this in two ways
either by sending his ideas and sug-
gestionS and advice to the Democratic
leaders in Congress without any public
expression Of his own or he can name
Immediately after the first of the year
his Secretary of the Treasury and de-
pend on the latter to work out q liaiSon
with the outgoing administration very
much as it is expected that Norman
Davis or any other man who is to be
named Secretary OF State will function
in matters Of foreign policy in bridging
the gap between the old and new adj
miniStrationse
tCopyright 1932D