The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-01-23
FINANCE BOARD
MAKES DAWES
NEAR-DICTATOR
Swearing Generals Power
Over Sick Business Is
Almost Absolute.
BY RAYMOND CLAPPER
United Press staff Correspondent

WASHINGTON, Jan. %. - AS
president of the new $2,OOO,OOO,O 900
Reconstruction Finance Corporation,
Charles G. Dawes in practice will
become virtually a temporary die
tator over the sick business of
America.
Expecting to begin functioning
next week, and advised that the
main burden of operations of this
gigantic anti-depression effort will
fall on his shoulders, Dawes is
studying the methods used by the
war finance corporation, the minia-
ture predecessor of the present or
ganization. He is interviewing all
here who participated in that work,
and expects to draft many of them
into his organization because of the
similar methods that will be fol-
lowed.
Hoover Signs Bill
The President signed the bill Fri
day night at 606, Immediately after
receiving it from congress. He used
two pens, affiXing his name in a
small Office adjoining the big cir
cular room where he usually works.
He issued a statement afterWard,
praising the bill and ''the patriotism
of the men in both houses of con-
gress who have given proof of their
devotion to the welfare of their
country irrespective of political
affiliation.'
Immediately afterward, he went
into conference with Speaker Gar
ner of the house, and Minority
Leader Robinson of the senate, re-
garding the three Democrats to be
appointed to the board of directors.
The Republican members already
have been named.
Meantime the house is preparing
to give prompt consideration to
the $500,00O,000 appropriation re-
queSted by President Hoover to pro-
vide working capital This measure
may pass today so that loans pos
sibly could begin to be made next
week, following senate action.
Get Federal Oxygen
In practice the enormous power
of the corporation will be exercised
through Dawes. Industries and
banks that are gasping for breath
can get federal oxygen offered by
this gigantic corporation only with
his approval. His tremendous power
will come from tile fact that he has
a majority of the corporations
board solidly with him in Eugene
Meyer Jr.. governor of the federal
reserve board and chairman of the
finance corporation board: Secre-
tary of Treasury Mellon and Farm
Loan Commissioner Bestor. All of
them have indicated they will be
compelled to leave actual operations
largely in the hands of Dawes be-
cause they are burdened with other
heavy activities.
Envy of Rulers
The swearing general would be
the last to describe himself as any,
thing approaching an economic die
tator. But with the assured vote
of majority on the new corpora
ton board, this forceful, unconven-
tional figure, who believes in TAX
ing the shortest cut to where he is
going, will exercise power in prac-
tice which rulers of nations might
envy.
1t will be for him to say whether
a bank, pleading for loan in or
der to keep its doors open, is a
worthy institution deserving of aid.
1t will be for him to say whether
an industry is normally sound
enough to warrant the injection of
possibly $1OO,OOOOO0 of public funds
in order to save its life. 1t is a
responsibility sufficient to terrify a
man less straightforward, less IA
miliar with business and banking,