Evening star., 1934-08-31
President Reported Anxious
as Test NearS on U. S.
Borrowing Power.
S1,725,0 900, 900 INV0L WE'D,
MORGENTHAU CALLED IN
World Situation to Be Reviewed
Tugwell on Hand--New York
Job Dispenser Gets Audience.
BY J. RUSSELL YOUNG,
Sfan ~ CnrresnnnhanA nf The Ctar

Stan Correspondent OF The Star.
HYDE PARK, N. Y, August 81
President Roosevelt today entered
upon the most important conference
he has held since setting up the Sum.
mer White House here when he
gathered about him Secretary of this
Treasury Morgenthau, Jefferson Cool.
idge, Undersecretary Of the Treasury
Herman Oliphant, general counsel Of
the Treasury, and Jacob Viner, for
eign exchange expert of the Treasury
Immeditely afterward the President
was to talk with Harry L. Hopkins
Federal relief administrator, and Rex.
ford Guy Tugwell, Undersecretary OF
Agriculture, recognized as one of the
principal advisers upon economic
matters.
Mr. Roosevelt's talk with these two
important members of the New Deal
administration will not be q hurried
one They will be accompanied by
their wives and will be house guests
overnight 1t is thought likely Mr.
and Mrs. Honkins will remain until
Sunday.
To Review Situation.
The conference, which is expected
to run late into the afternoon, is un-
derstood to be primarily to discuss
the forthcoming financing of approx
mately 81, ,725 ,000, 900, more than two,
thirds of which is to be used in re-
deeming Liberty Bond 4As which
have been called for redemption Oc,
tober Is, but the talk will touch on
the entire monetary situation in this
country and abroad.
The remaining 525,000.0 900 Is to
take care Of short-time note obliga-
tionS maturing September Is.
The Treasury, along with the Fed
eral Reserve Bank and the banks in
New York, has for some time been
working out the details for this huge
financing, and it is expected the de-
velt for his approval.
Undersecretary Coolidge and Chief
Counsel Oliphant have been Secre-
tary Morgenthau's principal heuten-
ants in laying the plans and working
out the set-up for this financing, and
because Of intimate knowledge Of the
whole transaction their presence was
deemed necessary.
Borrowing Power at Stake.
Mr. viner, one of Mr.. Morgenthau's
close advisers, has occupied an i'm
portant role In the working out Of the
details for this forthcoming financing.
Moreover he was wanted at the Hyde
Park conference today to advise the
President regarding the foreign none
tary situation, inasmuch as the entire
financial situation, both here and in
Europe, Is being carefully reviewed.
There was no mistaking the appre-
hension on the part of administra-
ton officials here, as the date ap-
proaches upon which the Treasury
must face what some are inclined to
call the most critical test the New
Deal has yet been Submitted-the test
of the Governments borrowing power
under conditions that are admittedly
adverse.
As President Roosevelt read through
the news dispatches laid before him
early today, there was much occasion
for his brow to wrinkle and for him
to feel gloomy. First, there was the
news that half a million textile
workers are determined to 90 on
strike tomorrow and the National
Labor Relations Board, recently
created to prevent such strikes, ad-
mitted itself helpless to forestall the
walkout
Additional bad news was William
Green, president of the A. F. of L.,
branding the N. r. A. as a failure;
the declaration on the part Of the
steel industry that there would be a
10 per cent reduction In wages.
No Change Foreseen.
Ordinarily the mere discussion OF
q Treasury issue, the presence of the
Treasury general counsel and foreign
exchange expert would be of no real
significance. General Counsel OIL
phant is on hand as a general rule
when some monetary move Is in pros.
pect or some executive order is innn1i-
nent. Ke has recently spent much
time conferring with the Federal
Reserve Bank in New York and groups
of important bankers there, regarding
the forthcoming financing, and 1t Is
natural to suppose that he had much
of importance to report to the Pres
ident at today's conference.
The belief here, however, Is thai
there is no change in the monetary
system contemplated at this time.
1t was said that this conference
after disposing of the Treasury hnanc-
ing plans, would cover wide field
even discussing the forthcoming
budget estimates as they are now be-
ing worked out. Mr.. Roosevelt had
some fresh, up-to-the-minute figures
and facts regarding this subject to
present to this conference, as a result
Of his hours talk yesterday afternoon
with Lewis Douglas, director of the
budget.
1t is thought likely that the budget
planned for presentation to Congress
in January probably will have to be
altered from the tentative form DIsn-
ned last January, when the President
pledged the administration not to
push the national debt above $751;
100000 600 despite the requirements