Evening star., 1934-09-08
FINANCIAL AIDES
ADVISE ROOSEVELT
CreditabIe Showing on In.
terest Rates on Bond
Issue Sought.
BY J. RUSSELL YOUNG.

In EhAbEAf Ns i 5CRbCIlbCl
President Roosevelt turned his atten'
ton today to finances, holding serie:
of important conferences preparatory
TO the Treasury Departments public
announcement next Monday of the
full details OF the $l,75o 600, 900 bond
issue.
The President first talked with Sec
retary of the Treasury Morgenthau
and then with Daniel w. Bell, acting
director Of the budget. He talked
with these major officers of the ad-
ministration separately and then to-
gether, and afterward had a Ions
session with James II. Perkins, presi-
dent of the National City Bank Of
New York.
Perkins. one of the outstanding
financial men of the country, will re-
main at the Presidents home for
lunch and a further chat afterward
during which time Mr.. Roosevelt will
endeavor to check up with him the
financial condition of the country, es-
pecially the situation in the bond
market.
Credit Test Seen.
This refinancing job, the largest Of
It's kind undertaken under the New
Deal. is looked upon in some financial
quarters as major test of the ad-
nlinistrabon's borrowing power.
The reflnancing includes $l,200,-
100000 for redemption of Liberty "A
bonds which have been called for
october IS, and $525 900, 900 ~
Treasury certificates maturing Sep
tember Is.
While today's conferences them
selves were taken as an indication
of the extreme pains the administra-
ton is taking in making its plans
for the fiotation OF the new huge bond
issue, the Summer White House
vigorously sought to spike reports
that the Treasury entertained any
doubts as to the ultimate success OF
the big undertaking.
In referring to the refinancing pro-
gram being worked out administration
officials referred to 1t as a little issue
OF q billion and three quarters" and
at the same time described those who
are responsible for the circulation Of
disturbing rumors, as deliberately try
ing to wreck the credit OF their own
Government, without pausing to find
out the facts and without taking
stock Of the consequences.
Rate One DIfficulty.
One of the difficulties faced in work.
ing out the refinancing is the fixing
of the interest rate for the new bonds.
With Nation Uidn
election only short way off. the po-
litical desirability of a low interest
rate becomes important, principally
as a means of demonstrating the
soundness of the New Deals financial
policies. Therefore, the matter of q
rate is one of the problems being dis
cuSsed between the President and
Morgenthau today.
The time for completing the budget
is drawing near, but the prospects Of
balancing it is receding as the demand
Tor Federal relief grows, due to the
recent recession in employment and
the wholesale ravages of the drought.
This, along with the general falling
of in business and industrial activity,
as well as the departure of Director
Douglas from the administration pic
ture, are making the budget balancing
task more difficult. However, the
President is known to be counting
heavily on making progress during his
conference today with Acting Director
Bell.
Observes and Listens.
In his endeavor to find out the true
state of the affairs here and abroad
and to be informed as to the public
reaction the President has been re-
ceiving a succession Of visitors widely
versed in the everyday economic af-
fairs of this country and Europe. He
has been questioning them closely.
AL of this is a part of his psychology
In keeping his hands on the public
pulse. Moreover, this information is
being collected by him as prelude to
drafting a legislative program to be
submitted to the next Congress. In
this connection he has been extremely
anxious to find out what every one
thinks about the New Deal machinery,
so as to determine what changes to
make
He is convinced that the machinery
of the N. r. A. can be, and must be
improved. Already he has worked out
with his recovery assistants, a re-
organization program which contem-
plates modification and simplification
In this respect he has made clear
his inSlStence that collective bargain
ing, or at least its general principle
be made as much a part of the per-
manent industrial program, as aboli-
ton of child labor.
Doubts Price Fixing.
While discussing this with news
paper men here he indicated that
he is of the opinion that there is
considerable doubt as to the advisable
ity OF continuing the price, fixing
plan, as well as price posting, because
OF the difficulty of enforcement and
the fact that they run in conflict
with the antitrust laws.
However. he is not ready to discuss
the details of the plans of reorganiz-
Ing the N. r. A., but he will have
more to say on the subject following
a conference he is to have Monday
or Tuesday with Gen. Hugh johnson
recovery administrator.