Evening star., 1933-11-16
The Treasury Changes.

The treasury Cnanges.
Less than a year ago, when the big
news Of the day was largely concerned
with speculation as to the incoming
Presidents choice Of a Secretary of the
Treasury-then as now considered the
most important cabinet post at his
disposal-the name of Carter Glass of
Virginia ranked at the top of the list,
Bernard Baru5 of New York was
frequent runner-up and the gentlemen
of the press, rejecting the views of
those close to the President presented
numerous other candidates.
1t is q matter of significance that with
out single exception those who were
presented as available" material from
which the President might choose were
identified with a conservative and ortho-
dox school of thought regarding none
tary or fiscal policies. That has been q
part of the tradition surrounding the
position Of Secretary Of the Treasury.
The post has called for a man whose
Pnoe nSSOSAotAOiLo AlafS AOICCdSL Ilc
views he would hold in fulfilling the
chief function of the Secretary of the
Treasury, which is to safeguard the
credit Of the National Government and
to present expert opinion to those who
share that responsibility with him. The
tradition was preserved in the selection
of Secretary. Woodin. Practically un-
known politically, his reputation in the
financial world placed him Immediately
In the ranks Of the sound money" men.
All Of this is by way Of illustrating
the Importance which observers now
attach to the sudden shifting of the
higher ranks at the Treasury. From
the outset Of the administration Secre-
tary Woodin has been afflicted by III
health. which kept him from his office
a large part Of the time. The active
direction Of Treasury Department poll
cies has been In the hands Of Under
secretary Acheson, who has come to
be regarded as stanch advocate of
conservative fiscal policy. The init
mate friendship between the President
and Secretary Woodin accounts for the
latter's retention now as the official
head Of the Treasury, relieved, how
ever, of the worries and pressure of
high Office by the unusual resort to a
'1eave Of absence" But Secretary
Woodin has, for the time being, as
completely removed himself from the
picture as if he had resigned. Mr..
Acheson has resigned. The duties of
the Secretary of the Treasury will now
be performed by Henry Morgenthau,
jr., up to this time governor of the
Farm Credit Administration.
Who Is MIR. Morgenthau? In the
first place, he is regarded as one of the
Presidents closest friends. They are
neighbors in New York. He has worked
for Mr.. Roosevelt in his campaign for
Vice President in 1920 and in his cam
paigns for the Goyernorship in New
York. His father, the former Ambassa-
dor to Turkey, was banker by pro-
fession. The son has been publisher
of a weekly farm journal. He has been
an adviser on agricultural economic
problems. In addition To his work as
farm credit administrator, he has been
o member OF the daily council at the
Treasury which has announced the
daily price of gold as part of the
characterization experiment now in
progress One reason advanced for his
selection as a member of that council
Is his advocacy of the theories of Prof.
George F. Warren of Cornell, whose
monetary PHILOSOPHERS are receiving
trial by the National Government. He
studied under Prof Warren and has
publicly Endorsed his theories.
1t is, Of course, little farfetched to
believe that Acting Secretary Morgen-
thau will decide the fiscal policies of
the Nation. Those policies will be de-
cided by the President. 1t is natural
that the President wishes a Secretary
who will work with him heart and
soul in making those policies effective.
The change Of front at the Treasury
Is significant, Of course. But the funda-
mental fiscal policy of this Govern
ment must remain unchanged. That
policy is to preserve the Government
credit, to prevent misuse Of powers
which threaten to undermine and de-
stroy that credit. The experiment in
gold price fixing, now in progress, is
disturbing. Comfort remains in the
hope and the belief that the experiment
will not be carried beyond the point
where, in view OF threatened failure
and accompanying distress, it can be
Immediately dropped in favor OF re-
turn to practices which have been
tested by experience.
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