The Waterbury Democrat., 1933-11-20

Because "He'H Obey Orders.
 Washington, No. 20. = The forced resignation of Dean Ach- eson as under secretary of the treasury is one of the most signi- cant events of the New Deal. Be- hind it were three important fac- tors.
 One was the determination of the president to move further left in his monetary policy. Sec ond was his determination to sweep aside those who actively oppose him. Third was his de- termination to to be his own sec- rotary of the treasury.
 HOW IT HAPPENED
 It all came about this way. For weeks there had been a split between Franklin Roosevelt on one hand and his treasury-fed- eral reserve board advisers on the other. The latter believed in the cautious policy of stabil- izing the dollar. Roosevelt him. self believed in the bold policy of experimentation.
 In the former group was Ache- son. He disagreed violently with the presidents gOld-buying plan. The only difference between him and his colleagues was that he had the nerve to stand up for his own convictions. He told Roose- welt what he thought.
 Some of Acheson's ideas got out to Wall street. They were to the effect that the debasing of the dollar would also lower the value of government bonds, cause the undermining of banks and insurance companies which have stocked up with those bonds, endanger the national fi- nancial structure.
 Leaks regarding this split be- gan to tricklc back to the White House. Roosevelt blamed them on Acheson. As a matter of fact, AchicsOn was the most tight. Tipped member of the treasury, was not responsible for Wall Street rumors.
 SECRETARY ROOSEVELT
 All this came to a head last week
 Finally Roosevelt called in Acheson and fired him. The so- called resignation was a mere formality. Acheson had no choice in the matter. Roosevelt told him that since he, Acheson, would be in charge of the treas ury during Woodin's prolonged absence, and that since he, Ach- eson, did no tagree with the Roosevelt monetary policies, it would be best to resign.
 A few minutes later his resig- nation was announced.
 Simultaneously Roosevelt de- cidcd to be his own secretary of the treasury. He notified Lew Douglas, another critic, that henceforth he would cOnfine his duties only to the budget, keep his hands out of monetary af- fairs. Simultaneously also Pro- lessor o. NJ. w. SpraglIe, former adviser to the Bank of England, intimated that he would resign. Simultaneously also Eugene Black, governor of the federal reserve board, indicated that he would join the trek toward the treasury exit.
 EXIT DOLLARS
 Henry Morganthau, Jr, the man who becomes acting secre- tary of the treasury, is charac- terized by one of his most inti- mate friends as. "A nice boy but dumb; he won't know what it's all about, but he'll obey orders"
 Henry Morganthau, Jr, and Franklin Roosevelt have, been friends for years. Henry Nor ganthau. senior, was one of Roosevelt'l first boosters. The president, even to this day, refers to him as Uncle Henry" Most of his life a very conservative gentleman, Henry Morganthau has been following Roosevelt to the left. He now brides himself on his radicalism.
 What is more important is that 1IVhTy NhOiSdhlIIdus OTs IS tItC man who introduced to ROOse- welt, Professor George F. War ren. who is now dictating Roose- velt's policy of buying gold abroad. Wall Street calls him the "rIbber dollar man." but the president is still for him. Warren taught Henry Morganthau, Jr, at Cornell. FINANCE GOES HAYWIRE
 Financial centers went slight ly haywire after the Acheson resignation. They interpreted it as paper money by Christmas. Large gobs . of dollars began winging their way across to Can- ada and England.
 The treasury has to float $700,- 000,000 of government bonds on December 15 to finance public works, and the Wall street dopesters figure that with the dollar sliding downward tba