Evening star., 1934-08-12
Secretary Morgenthau Now Coming
Into the Limelight of the New Deal

000, 900 900, and borrowing will need
to make up the difference, whatever
it is. A deficit much larger than the
nearly $4,000, ,00o. 900 of the last fiscal
year is in prospect.
As the deficits mount. Mr.. Nor
genthau sees his responsibilities rise
in proportion. For, in addition TO
serving as a tax gatherer and bor-
rover, he must deal with the public
debt, which now is over $27000,-
100000 and may reach nearly $33,-
000, ,00O, 900 before next July. How
large the national debt can grow with
out becoming too burdenSome for the
Secretary of the Treasury to handle.
Mr. Morgenthau will not say But
today he is finding his money-raising
activities relatively simple. His ex-
perts tell him that Federal credit has
a long way to go before becoming
strained.
Much in advance Of that time the
Treasury Secretary will have ready
for Congress his plans for a complete
overhauling of the Federal income tax
system. These plans are sure to call
for changes that will be expected to
increase the volume of revenue and
put off still further the time when
questions might be raised concerning
the borrowing capacity of the Gov
ernment.
In all Of his work Mr. Morgenthau
serves as one of the most trusted of
President Roosevelt'S lieutenants. He
started his present job very inaus-
piciously with an order that closed
all independent avenues of informa-
tion in the Treasury Department to
newspapermen. The only news there
after was to come through a new
press relations officer, somewhat along
the lines of the present German, Rus
sian and italian systems. The kick
back was more than the Secretary
had expected.
Shortly after this experience, Mr..
Morgenthau visited the President at
Warm Springs, Ga, where he had
gone for Thanksgiving. Mr.. Roosevelt
was reported to have greeted him with
the observation:
We'll, Henry, you face a bright fu-
ture. You are starting right at the
bottom. There isn't any way for you
to go but up"
Since that time he has been en-
gagged in going up. Newspapermen
now find him frank and not inclined
dent, he is not afraid to admit that
he does not know the answer to a
question. Also, like the President, the
Treasury Secretary is primarily an
executive who can delegate work and
make decisions He is not lost in
detail.
Mr.. Morgenthau had been an old
friend and neighbor of Mr.. Roosevelt
in New York State. He served in the
Roosevelt cabinet when the President
was Governor of New York State.
When the Democrats came into ofice
in March, 1888. this friend of the
President was given the task Of re-
organizing the Governments sys-
tenn of farm creditS-a difficult and
immense task.
When the late William Woodin no
longer could fulfill the duties of the
Treasury Department, owing to Ill
health, those who served in his abb
sence held opinions that differed
radically from the opinions of Mr.
Roosevelt on money and finance.
There was a glaring lack of harmony
between the White House and this
vital department. When a change
was made, Mr.. Roosevelt wanted some
one absolutely loyal to him and in
whom he could trust implicitly. Mr..
Morgenthau was his selection.
Like Henry Wallace and Chester
Davis, Henry Morgenthau came up
through the ranks of former publish
ers of farm papers. Farming and
publishing were hobbies with him, but
he is reported to have made both pay
dividends.
Theories. at present are not
worry to the Treasury Secretary. He
is determined to make of the Treas
ury Department much more effec-
tive institution. In carrying out that
determination, he is striving TO i'm
prove the machinery for tax collec-
ton and to see that evaders are pun
tshed, whether escaping income taxes,
customs taxes or liquor taxes. Like
wise he is engaged in the task Of
borrowing money for the Government
just as cheaply as possible in order to
keep the mounting debt from becom-
ing burden that the Treasury viii
have difficulty in managing.