The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1934-09-14

chemist in the world can truthfully
say that either of these commodities
Is coconut oil and customs authorities
obviously cannot dispute scientific
facts. The result is, of course, that
the test has failed and no one can tell
at this time what may be the out
growth Of this legislative experiment.
Republican wheel-horses claim they
now have ammunition in the shape Of
Mr.. Morg thau's
Morgenfhou speech on the cost
Under Fire of the New Deal, for
which they long have
awaited. The treasury secretary spoke
over the radio. His purpose obviously
was to get as wide distribution as
possible for his conclusions that the
New Deal thus far has cost only $685.
100000, despite the fact that the treas
ury daily statements show an addi-
ton Of approximately eight billion to
the national debt The secretary was
able to show, to his way of thinking,
that while the public debt has been
| increased by the amount stated, near
ly all of these funds eventually will
come back into the governments
money chest. He admitted, however,
that there may be losses sustained by
some of the emergency agencies and
that these losses naturally will affect
the total as he had calculated it
foil
concerning Mr.. Morgenthau's speech
and he told me of his intention later
to make similar speech on the sub
ject. He was somewhat disturbed,
however, as to how he could explain
the receipt by the treasury of $780,
100000, which is the amount of profit
gained by the government as a result
Of devaluation of the dollar to the
point where it is worth only SOC in
gold He appeared to be afraid that
opposing campaigners were going to
say that the federal government had
no way of obtaining revenue or money
Of any kind other than by taxation
and borrowing. He suggested that the
profit of devaluation could hardly be
described as money borrowed nor
could it properly be called receipts
from taxation. When I last talked
with him he had not found a term
which would cover these receipts,
which are scheduled to include also
profits from changes in the value of
silver.
The Republicans are using Mr.. Nor
genthau's own figures in an argument
that the assets of wholly government
owned agencies such as the Reconstruc-
ton Finance corporation are so far
only bookkeeping items. 1t appears to
be irrefutable that no one can fore
tell what the value of these assets are
going to be one, two or three years
hence. Therefore, without discussing
the merits of the argument on either
side, 1t can be said definitely that the
Republicans will be doing a lot of fig
uring just as Mr.. Morgenthau did fig
uring to reach the conclusions he want
ed to reach and disseminate among
the voters.
In some quarters hear expressions
of commentator for the pronounce
ments by Mr.. Morgenthau. Strangely,
these concentrations do not relate to
the total which he contended the New
Deal had cost thus far, but to the fact
that the administration was going to
remain faithful to it's pledge that the
deficit would not exceed eight billion
dollars in the period covered. Wash
ington has received numerous reac-
tons from business interests regard
ing this particular phase of the Nor
genthau speech, and business seems
to regard that much of 1t as reassur-
ing.
Financial interests, however, take
different slant on the Morgenthau
speech. They look upon it as "atmo-
sphere" in preparation for the financ-
ing that is taking place at mid-Sep-
TENDER. The treasury is borrowing
around two billion dollars. Part of
this represents new money but the
bulk of it is In the nature of refinanc-
ing. That is. new securities will be
offered and the proceeds used to re-
tire maturing debt.
As regards the controversy that is
raging in the administration itself, OBJ
servers believe there
Real Battle is every reason to
in Ohfng expect an eventual
explosion. General
Johnson, the NRA administrator, on
the one hand, and Miss Perkins, the
secretary of labor. and Donald Rich
berg, secretary of the Presidents ex-
ecutive council, on the other, are all
individuals of the temperamental
makeup required as requisite to a real
battle. Their differences grow out of
the plans as to the future of the
MIRA, which, the President has said,
Is to continue as permanent part Of
the New Deal structure. Washington
has not quite made up its mind con-
corning the delimitations laid down by
the two factions, but 1t is apparent
even now that Miss Perkins and Mr..
Richberg contend for expansion of the
NRA control beyond the limits to
which the bombastic General Johnson
is willing to go. Also, it is made to
appear that Miss Perkins and Mr..
Richberg prefer to see NRA under the
domination of an individual whose
mental slants are in line with their
own. which is to say. in the opinion
Of most observers, that they favor
radical tendency beyond General John
sons program. The general. having
been business executive. seems to
realize that It is better to proceed
cautiously In expanding NRA super